Login
ISCOVER
The challenges that prevent people from investing and still having money for luxuries usually fall into two baskets: saving and paying off debt.
Saving is serious stuff. It's the step that allows for investing in the future and building our financial security. According to a study from ME Bank, only 46 per cent of us manage to save money on a regular basis and 12 per cent of us dip into personal savings just to make ends meet.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Rest assured, it's possible for your clients to save, invest and still have money left over for life's comforts.
Here are some of my savings/invest/spending balance suggestions which have worked well for me and my clients as well as some of my best saving-for-investment tips.
1) Take control of your cash
The starting point to freeing up cash is to know where it's going, so your clients need to get honest and track their spending. This can be a real eye opener but is crucial to be able to free up cash for saving and investing.
2) Get serious about saving
Growing savings requires commitment. Not sometimes. Not when unexpected money comes in, but week in week out. It needs to become a habit. It doesn't take a lot to get started to see regular savings become a nest egg to be able to invest with.
3) Get clear on how to reach your financial goals sooner
I cover in my events how clarifying your financial goals will get you where you want to go faster. While there are no overnight get-rich-quick guarantees, there are many options your clients can consider to accelerate their savings and achieve their goals sooner. Those include reviewing their budget and spending as per point one, borrowing and joint ventures.
4) Immediate wants versus long-term wants
Your clients need to learn to prioritise and think long term before they spend. The key is not to dip into long-term savings to pay for short-term luxuries. With a little planning, they can have both and maintain a healthy sense of balance without too many feelings of 'going without'.
5) Change your perception
When saving and focusing on 'going without', it seems like others are buying the fancy car, booking the expensive holiday and living it up. But your clients should remember that just because they appear more affluent, it doesn't mean that they are – they could be living off plastic with no savings!
Ryan Crawford, founder, Crawford Property Group
Ryan Crawford has been involved in the property investment industry for over 10 years, making the transition from investor to real estate professional. His agency, Crawford Property Group, was recently named the fastest growing real estate company in Australia by BRW's Fast Starters Awards. CPG was also a finalist for Independent of the Year at the inaugural 2013 Australian Real Estate Awards. Social media has been a key element of CPG's business development strategy since the group launched in 2008. CPG's Facebook page recently hit 30,000 likes and has become one of its primary sources of new business.
