Lose Weight Build Wealth
Without Prejudice
Print this off and stick to your fridge door.
I thought this article by Noel Whittaker was a fantastic simple, readable and easy to manage way to reach your wealth goals. published in the Courier Mail, Sunday 22/07/2012.
The most popular new years resolutions are to lose weight and gain wealth.
The start of a new financial year, as opposed to a calender year, offers the chance to start again and what really stands out is is that exactly the same principles apply to each.
Today, in the interests of good health and wealth for us all, I'll share them with you.
Rule 1
You must have a concrete goal. It is as pointless to say "I want to lose a few kilos" as it is to say "I want to have more money in the bank" It is essential to have a specific goal and a clear timeframe.
Rule 2
Focus on the benefits as this is what will help you stay on track when the inevitable temptations arise. Shedding a few kilos will certainly improve your health and make you feel better, retiring with a substantial superannuation balance will open up a whole new world of freedom and choice.
Rule 3
It must be a permanent lifestyle change. Dr Gary Egger of Gutbusters, said the word D.I.E.T. was short for
Diabolical Ineffective Expensive Timewaster. Most people who go on a crash diet put back on all the lost weight when the diet inevitably becomes too hard. It's exactly the same with money. Scrimping and saving for a month is pointless. Becoming wealthy is usually the result of a process of managing your money well over the long haul and letting compound interest work its magic.
Rule 4
Understand the 70/30 rule. --70 percent of a successful weight loss programme will be attributable to your eating habits, and 30 percent to exercise. Seventy percent of building wealth consists of managing your money to spend less than you earn. The rest of it consists of good asset selection and tax effective strategies.
Rule 5
Don't try to do too much too soon. The reason that most New Years resolutions fail is that they are normally made in an alcohol induced euphoria and are not carried through in the harsh light of day. The trick is to start small and build on it. To lose weight you might decide to have two healthy eating days per week. To get your finaances in order you could start with a simple budget coupled with moving your home repayments from monthly to fortnightly.
Rule 6
Expect roadblocks, there will be times, especially around Christmas, when your budget and your belly will take a battering. By all means, prepare for these occasions to the best of your ability but don't give up if you have a setback. Just treat it as a period of consolidation while you prepare to move forward again.
Rule 7
Keep track of your progress, but don't do it too often. Both your weight and Portfolio are going to be bouncing around for the rest of your life, and getting excited or depressed because of a good or bad day can put you on an emotional roller coaster which could lead to impulsive and flawed decisions. As long as you are making steady progress towards your goal you are on the right track.
Rule 8
It's easier to live within your income if your circle of friends shares your financial aspirations. The great thing about having a variety of goals is that you can make them work together. Lets, face it, most of our discretionary spending these days is on food and alcohol, and cutting back on these will save you dollars as well as kilos.
Print this off and stick to your fridge door.
I thought this article by Noel Whittaker was a fantastic simple, readable and easy to manage way to reach your wealth goals. published in the Courier Mail, Sunday 22/07/2012.
The most popular new years resolutions are to lose weight and gain wealth.
The start of a new financial year, as opposed to a calender year, offers the chance to start again and what really stands out is is that exactly the same principles apply to each.
Today, in the interests of good health and wealth for us all, I'll share them with you.
Rule 1
You must have a concrete goal. It is as pointless to say "I want to lose a few kilos" as it is to say "I want to have more money in the bank" It is essential to have a specific goal and a clear timeframe.
Rule 2
Focus on the benefits as this is what will help you stay on track when the inevitable temptations arise. Shedding a few kilos will certainly improve your health and make you feel better, retiring with a substantial superannuation balance will open up a whole new world of freedom and choice.
Rule 3
It must be a permanent lifestyle change. Dr Gary Egger of Gutbusters, said the word D.I.E.T. was short for
Diabolical Ineffective Expensive Timewaster. Most people who go on a crash diet put back on all the lost weight when the diet inevitably becomes too hard. It's exactly the same with money. Scrimping and saving for a month is pointless. Becoming wealthy is usually the result of a process of managing your money well over the long haul and letting compound interest work its magic.
Rule 4
Understand the 70/30 rule. --70 percent of a successful weight loss programme will be attributable to your eating habits, and 30 percent to exercise. Seventy percent of building wealth consists of managing your money to spend less than you earn. The rest of it consists of good asset selection and tax effective strategies.
Rule 5
Don't try to do too much too soon. The reason that most New Years resolutions fail is that they are normally made in an alcohol induced euphoria and are not carried through in the harsh light of day. The trick is to start small and build on it. To lose weight you might decide to have two healthy eating days per week. To get your finaances in order you could start with a simple budget coupled with moving your home repayments from monthly to fortnightly.
Rule 6
Expect roadblocks, there will be times, especially around Christmas, when your budget and your belly will take a battering. By all means, prepare for these occasions to the best of your ability but don't give up if you have a setback. Just treat it as a period of consolidation while you prepare to move forward again.
Rule 7
Keep track of your progress, but don't do it too often. Both your weight and Portfolio are going to be bouncing around for the rest of your life, and getting excited or depressed because of a good or bad day can put you on an emotional roller coaster which could lead to impulsive and flawed decisions. As long as you are making steady progress towards your goal you are on the right track.
Rule 8
It's easier to live within your income if your circle of friends shares your financial aspirations. The great thing about having a variety of goals is that you can make them work together. Lets, face it, most of our discretionary spending these days is on food and alcohol, and cutting back on these will save you dollars as well as kilos.
