Published On: Wed, Jan 18th, 2017

6 steps to financial success

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The time-tested tenets of personal financial growth have undergone extreme shifts in the past few decades. Notions of working hard, saving incrementally, and not accruing debts are somewhat antiquated. At best, they have not evolved to address modern global economic troubles. For younger people who have a great deal of living to accomplish before retirement, these ideas can seem to be little more than theories, or illustrations of how growing personal wealth was originally designed.

The truth is, what previous generations considered bulwarks in planning for the future, either no longer exist, or have radically changed. The nature of money and investments themselves have not changed, but the paces of society and markets have. Investment tools like CDs are still available, but their rates are virtually zero. Job creation worldwide is vibrant, but incomes are severely overshadowed by inflation and rises in the cost of living.

6 steps to financial success

Younger people should have a respect for the way their parents and grandparents built wealth. They should also understand however, that present day realities equate to never-before-seen global economic horizons. There are several overlying principles working people can use to build personal wealth in uncertain economic times. They take a cue from the past, but keep the present in perspective.

Make Increased Income The Main Focus

Past generations would commit to lowering their standards of living to just below personal income levels. In doing so, they were able to guarantee the ability to save. This precluded affordable housing, living wages, and reliable currency valuations. Today’s working person cannot predict the scope of increased costs.

Therefore, a rabid focus on earning money should be the primary goal. Seek the highest pay for a specific position. Use cash inflow to create immediate opportunity. Instead of always worrying about retirement, use pay check excess to create short-term safety nets. Change your economic perspective from constant squirrelling, to doing more with more.

Pay-Off Loans First

For most people, things like car payments, rent, grocery shopping, and utility costs will be a fact of life until the grave. Large elective loan payments are not. Yes, financing education and a permanent home are important, but not guarantees for life.

Large government and private loans are the most common yolks holding people back from any type of financial freedom. Student loans are especially notorious for outrageous interest rates, inflexibility in refinancing options, and require huge monthly payment obligations. Focus on paying these loans down before any other huge financial decisions. This means negotiating lump sum forgiveness, making more payments annually than required, and researching income-based repayment options in order to secure a career that pays better. Also, consider stretching out the time it takes to finish school. Work and pay for it gradually to avoid large loans altogether.

Take Advantage Of Investment Tools

Certain investment vehicles that were popular in past decades are no longer worthwhile investments. If you do find yourself in a situation where there are extra monetary resources for investment, research new options. These can include aggressive money market accounts, IRAs attached to banking accounts, and even precious metals purchasing. Many people do not realise that things like gold, silver, and platinum have outperformed most traditional investment vehicles in the past twenty years. Dedicating money to a growth option is good, but look outside the investment box. The best returns are now sometimes achieved in ways that were literally “pooh-poohed” in the past.

Hire A Financial Advisor

Like many aspects of modern life, a personal financial edge is achieved by taking advantage of a network. It doesn’t matter what your ultimate financial goal is. There is no substitute for knowledge about money gained from expert consultation.

Whether it’s designing a spending and saving plan, researching borrowing options, short term and long term investing, or learning about general money subjects, a professional financial adviser sydney is an extraordinary resource. For very little cost, a young person can gain a sense of how the modern financial world works, and how they fit within it. Advisors specialising in debt management, saving contributions, and market options can help instil a sense of hope and vitality in young people facing the challenge of bettering themselves financially.

Exercise Spending Restraint

Becoming a hermit is not an option for young people in the modern world. That being said, the best way to immediately change a financial situation is exercising spending restraint. Take care of necessary obligations like bills and loan payments first. With any type of leftover disposable income, take an inventory of spending opportunities that truly increase quality of living, or are obvious luxuries.

Decrease clothes shopping trips, pub visits, and dining out to once a month instead of every weekend. Develop a hobby instead of relying on expensive home entertainment programming to fill extra time. Go on dates to the local park instead of expensive excursions. By all means enjoy living, but find activities that create financial breathing room over time.

Utilise Valuable Financial Incentives

At certain times, people are presented with choices between two financial positives. For instance, two job offers arise at the same time. One has a slightly higher salary. The other offers employee incentives like pension plans, automated payroll deduction for investing, and in-house insurance benefits. Take freebies when they present themselves! By all means, choose the position with the extra financial package waiting in the wings. A choice like this kills several financial planning birds with one stone.

There is one thing that young people have in common with their predecessors in the quest to better themselves financially. That commonality is struggle. Improving a financial situation is guaranteed to include long time periods and a commitment to a specific plan. In the modern world of personal finance, some things have changed, but knowledge still equates to power. Seek solid financial advise, and remain dedicated to a bright financial future.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at

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