Weekly Success Tip

I'm often quoted as saying, "Business is simple, people are complicated". This is even more true when it comes to money and here's why...

When it comes to money, people generally fall into three different categories.

1 - Those that spend more than they earn

2 - Those that spend all that they earn

3 - Those that spend less than they earn

That's it. Just three categories!

Which category do you fit into?

And the delusion that most people are under is that earning or getting more money will solve their problem. Well, if you fall into category one or two above, that is, you spend all or more of the money that you receive, ask yourself:

"will getting more money take me closer to financial freedom?"

Clearly the answer is no.

The truth is most of our actions and behaviours are habitual. It is our habits that shape our lives, even when it comes to money. Let me give you a true story, that I remember from my fitness club days...

One guy named Darren that used to come in to the gym was a car sales yard manager. I remember him telling me he earned $120,000 per year and at the end of the year, he didn't have one dollar to his name! Can you imagine that? He was earning more than double or triple the average income at that time, and he didn't have any money left at the end of the year.

His solution was for his mother to control his money. His pay actually went into an account controlled by his mum, who would then give him $200 per week for his expenses.

I know this is hard to believe, and that's exactly why I remember this story so vividly.

What's even more interesting is that his secretary was on $25,000 per year and was able to save $100 per week. At the end of the year she had $5,200 in her bank account and her boss, who earned $120,000, had zero. On 1/5th the wage of her boss, at the end of the year she was closer to financial freedom that he was.

Perhaps people should be more interested in learning how to change their habits rather than just chasing more money. In fact, you could be a lot happier, on a lot less money if you did so.

Remember, it's not how much you earn but how much you keep and what you do with it that counts.

Action Step: Pay yourself first. Set up an automatic way for 10% of your weekly income to be saved into a separate investment only account. Also, I suggest you read the book, The Richest Man in Babylon. It's especially great for young people too