• Freya Savage

Why you won't be rich

A few days ago I got a message from someone asking for advice on direct shares. It went something like this:

Him- Hi, I’m looking for advice on what shares to buy, can you do that?

Me- Absolutely, but I won’t and I don’t. I focus on how to build long term wealth that supports a desired lifestyle.

Him- I bought share yesterday and they went up by 200% in 1 day, how is that not the most effective way to build wealth?

Me-  Great, it’s sound like you have it all sorted in that case.

Him- I would like to find out more

Me- I’m not the right coach for you, but I’m happy to refer you on.

Two lessons here.

Lesson One Don’t just work with anyone.

Choose the people who you want to work with. Don’t be afraid to say no if it doesn’t feel right.

Saying no gives you more space to attract your soul clients and give a huge amount of value to the people who energise you.

Lesson Two The wrong question is- What shares should I buy?

What shares should I buy, it tells me you don’t have direction, it tells me that you are shooting from the hip and giving all your power to luck. And let me tell you luck is not luck, it comes from having a vision and doing the work.

The right question is- How do I want to live my life?

You might say ‘I want to be happy and rich’.

Yes, but what does that mean?What are the criteria for being rich and happy?How much do you want?Why do you want that much? Your much more likely to achieve a goal if it has emotion and feelings attached to it, rather than it just a number.

For example I want $1mil is much different from I want to be able to travel the world for 6 months every year from age 40, NOW YOU’RE TALKING. Yes that might also require $1mil but the million is not the point, living it is the point.

I’ll walk you through a method I sometimes use to help members achieve their desires. Let’s use the GROW model.

G- Goal Let’s get specific, when & how much do we need.

Travel the world for 6 months of the year, in 10 years, for $40k pa

R- Realistic How realistic is this goal given the current circumstances? So you currently earn $100k, and have the ability to invest $30kpa.

With some quick maths if you invested that in 10 years you will have around $470k. A portfolio of that size would produce around $20k pa without needing to eat into capital. Magic.

So we want $40k, and can get $20k from the investment portfolio each year. We have a $20k shortfall. What are out options?

O-Options This is where you get to be creative. There is no right answer here, it’s your life, your design. Increase contributions to the investment portfolio by increasing incomeIncrease contributions to the investment portfolio by reducing expensesTravel for 3 months per year rather than 6Reduce expenses while travelling and/or increase income while travelling with AirBnB or online work Now decide what the criteria’s are for a desired situation. “Travelling for 6 months is a hard must” “So I’m happy to do a hybrid of each of the above options”

W-Way Forward What are the action steps to take to move forward towards the goal?Re-organise cash flow to contribute to the investment portfolio each year- $30k p.aStart that side hustle and contribute all the proceeds- $10k paAirbnb home while away- $10kBudget while travelling, it’s fun!- $30k So now you have a portfolio worth $640k in 10 years, producing $25k in income pa, plus you’ve got $10k coming in from renting out your home. Plus if you decide to pick up some online work you can easily meet your original goal.

You have a solid $35k to spend per annum on travel FOREVER because you’re not eating into capital.

Once we’ve worked through this together you have weight to ask me what to invest in. Now we start to build your portfolio.

Want to start actioning your desired life? Book in a call with me here.

183 views0 comments
  • Black LinkedIn Icon