Here are the steps I’m using to create wealth. I was always looking for the quick fix the easiest and fastest way possible. Problem was that strategy didn’t work for me. These steps below are strategies that are working for me.
1. Kiwisaver When you are in debt one of the first things to do is setup a Kiwisaver (click the graph to show bigger image) account. As the law stands currently in the event of bankruptcy it is protected from creditors which makes it judgement proof. This way you can still save towards a home or your retirement without fear of it being taken from you.
My Kiwisaver is with ANZ bank. I’ve published the results above so you can see how it works. At first I was very anti Kiwisaver because I didn’t see any value. When you have a negative networth (liabilities are greater than your assets) you have nothing to lose by selecting the highest risk portfolio. I’m also tracking it on a spreadsheet.
2. Pick at least one positive monetary goal that requires you to take physical action. And that you can realistically achieve in one year. My goal is to sell one computer more than what I sold last year. The magic is in keeping it simple.
3. Commitment – learn what it means how to actually be committed to a physical outcome. Real commitment takes real action by getting up and doing something. When you do something say “Did that action get me closer to the outcome I wanted.” Focus on the outcome or solution rather than the problem. They are substantially different. It might be you are not achieving a better life because you have not learned the skill or knowledge to know what it means to commit to something. As Robert Kiyosaki (Rich Dad Poor Dad) says, commit to something until death.
4. Read several autobiographies of famous people who achieved their goals. I found it useful when I was reading to specifically look for the things in the book of how they achieved their specific outcomes and goals. I learned to be very picky about what I spent my precious time reading. For me, I found the common element was successful people actually did stuff, and learnt from their mistakes. They made self awareness, good health and self education a priority.
5. Start creating a Personal Change Plan to become debt free and incorporate new vital behaviours into it. (See the My Change Plan menu item). The change plan is what you are going to use to actively pursue your goals – permanently. The change plan is the magic that will allow you to understand what it means to know yourself better so you can change anything. The layout and detail of it are not set in stone. Its an ongoing changing process. You learn how to become your own scientist. Jump over to the Resources page and there is a link to the Change Anything Series.
6. Create two habits each month. One habit for debt reduction (or controlling spending) and one habit for wealth creation. For the debt reduction I decided to go with controlling my spending. So for me I started with writing a shopping list for groceries. The magic was, which I couldn’t have learnt through reading about, as I was walking around the isles looking for the items on my list, I suddenly became aware of distractions. Without a list I would have added the distraction items into my basket. There was the first scientific awareness. When I’m shopping I am easily distracted into spending more money. The awareness of the distraction changed my brain so now I perceive shopping in a whole new way.
7. To be continued….