Monday, May 9, 2016

Keep your eye on the ball

The final lesson from George Samuel Clason's "The Richest Man in Babylon" is to track your wealth, or if you're just starting out, lack thereof.  After all, how will you know if you are getting closer to a goal if you don't actually track your income and expenses?  Setting a budget is the easy bit, actually sticking to it in order to achieve your goals is the hard part. 

Lesson 8: Track your wealth

Achieving your goals will not happen overnight, and "The Richest Man in Babylon" focuses on behaviour modification rather than being a get rich quick scheme.  It does work, but as with all things, it is important to track how you going against your benchmark, which is this case, is your budget.

There are many ways that you can track your progress.  You can create an excel spread sheet, use an app or keep a hand written ledger.  The important thing is to ensure that you are going forward, and that your debts are decreasing, while your assets are increasing.

If you've committed to paying yourself first, are living below your means, and are on top of your household expenditure, then all you need is to set your goals, and track your forward progress.  Treat your finances like a business, because ultimately, that's what will fund your retirement.

By Erin Wright B.Int Bus Dip. FS(FP), Accredited Aged Care Specialist
Find Erin at Achieveit Financial Planning or call for an appointment on 07 4638 5011