My friends often come to me for investment tips, or to ask about an elaborate system to make money & grow wealth they read in a book by the latest self-proclaimed guru.
While these systems, books and investment ideas are great for the right person, for most people it is either a complete waste of time or it will actually lose people money. For most people I say “build wealth the easy way.” This is because I tend to think everyone is kind of like myself. I would rather spend my spare time camping, bike riding, socialising with friends and having a beer at the Todd Tavern instead of managing complicated financial situations. What most people need is a simple plan that is easy to follow.
You shouldn’t be spending hours every week analysing every investment you make, after all life is to be enjoyed. You don’t need to set up elaborate companies and trust structures to avoid paying tax. You don’t need to scrimp and save every dollar, and you don’t need to hit it lucky with the next big stock like Google, Apple or Facebook. You do need to spend less than you earn and save or invest what is left over.
Regardless of whether you currently: spend more than you earn causing you to fall deeper into debt; spend the same as what you earn and are breaking even; or are already saving money each month, almost everyone reading this will be able to make simple changes with huge results.
Spend an hour each year checking your big ongoing expenses like your mortgage, insurance and utilities. Recently I helped a friend save $38 a week by switching home & car insurance, health insurance, and calling their phone company to ask for a discount. I negotiated a better rate on his mortgage and we increased his mortgage repayments by the $38 a week he was now saving elsewhere. These were all small changes which are easy to do. It took us 4 hours of his time and didn’t require him making any sacrifices in the way he lives.
These changes are going to save him $138,444 in costs, and result in him paying off his mortgage 7 years quicker. Simple, easy, effective. Why complicate your life?