No one is born knowing about money. We are very likely to have picked up our biases and beliefs from how others behaved around us when we were growing up. These ingrained “truths” can sabotage us in many ways and we may not achieve the financial futures that we could and should. Overcoming your blocks around money is an essential foundation for financial success.
Knowing what is coming in and going out of your household is the next essential. Even if this is an act of bravery for you, it is impossible to move on and up without having a handle on this. Visibility across what is going out and where it is going can help with making better decisions about spending. When you stop wasting money, you will have more cash available to use strategically.
Part of being human is being vulnerable to setbacks. The next level is about putting some safeguards in place. Insurance policies to protect your income, possessions and loved ones are part of this. As well as making a will and appointing a power of attorney.
Then we can start to look toward the future with the next focus on unnecessary debt. Reducing borrowings reduces outgoings in interest payments as well as increasing over all peace of mind. You may even save more by not needing as much insurance cover!
Once the undesirable debts are gone, we can get serious about investing. It is self-sufficiency through accumulated assets that results in true financial freedom. Whether this is through super or outside, if you have your own pot of money you have choices.
And finally Financial Freedom. What does that look like to you? Overseas holidays, work becomes optional, more time to spend on hobbies, the chance to give back to the community? Choose your own adventure!
You might also like my free e-book Setting yourself up for the Future as a Woman.
(And If you think that you have seen this pyramid before, it is based on Maslow’s Hierarchy of Needs.)
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© Summation Strategies 2018.
Please note that all information provided is of a general nature and does not take into account your current financial situation, needs or objectives. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. We recommend those seeking insurance or making an investment obtain financial advice specific to their situation and consider the Product Disclosure Statement prior to making any financial investment or insurance decision.