A degree qualified person starting work today is estimated to earn $2.9 million dollars in salary over their working life. That’s a fortune in any language! And yet today, nearly three quarters of people aged 65 and above living alone reported welfare was their principal source of income.
These scary statistical facts just go to prove today’s Steveism, which is:
It’s not what you make, but what you keep, that matters most.
Too often investors are fixated on how to make more money, yet, even as they do, they also spend more, leaving them no better off. One of the secrets of wealth creation, as outlined in this short video is that before discovering how to earn more, first learn how to spend less.
Take a moment to estimate how much money you’ve already earned in salary and wages over your working life. If you have already worked more than 10 years, I’m willing to guess it’s a relative fortune. But how much have you managed to keep? If the answer is ‘not much’, then the sooner you learn how to keep more of what you earn, the better off financially you’ll be.
What’s one piece of financial advice you wish you could have given yourself ten years ago? Take a moment to share it below.
Until next time, remember that success comes from doing things differently.
– Steve McKnight
Save more sooner
Hi all, absolutely loved this one, simple yet true, possibly my favourite so far, I have exactly the same mindset and run my life/finances with that mindset, I absolutely love saving and finding more and more innovative ways to do so and just watching my bills stay low and steady as well as watching my monthly interest on home loan decline and decline. I have known absolutely plenty of people who claim to make a lot or in some cases actually do and just spend and spend and spend and barely know what’s going on with their finances, not good at all, wow Steve just under 75% end up on welfare, that’s bad, Australia is a great country for opportunities and you can succeed providing you do the correct thing with your money and have your priorities in order!!! Saving is such an important and underrated skill in my opinion.
In theory, I would have loved to have a realistic budget (short and long term), develop a clear savings plan and stick to it.
In practice, as a migrant from a third world country, this was difficult if not impossible for me 10 years ago. Trust me, the life of we migrant is very different and more difficult than an average Aussie – this forum is not the place to explicate further. Eventually we get by and get there but it is with enormous sacrifice and at great personal costs. Appreciate the encouragement in the article but sometimes it leaves you feeling guilty or stupid while knowing at the same time that it is not a level playing field.
Save 10% of everything you earn
Sell your labour or services at a retail price, try to buy what you need secondhand, wholesale or tax deductible
(most workers sell their labour to an employer at a wholesale price, who then resells what they make or do at a retail price) Try to BE your own employer
Never buy a depreciating asset on credit unless it helps you earn more than it’s purchase price
Never cost your labour doing something that you enjoy, or you’ll start to think you could be working when you’re playing with your kids or taking your partner out to dinner. Invest in your life, not just money
Pay your self first , From Robert Kiosaky.
Would have made all the difference .
Pay down debt. You did mention that 10 years ago :)
So simple yet so often overlooked. I would have done more of the automatic deduction, into a vault for using ONLY on risk assessed (relevant to me) compounding return investments. In one sense I did do that on my house (luckily it grew in value!), though the principle sticks for everyone including those not owning a house.