There are many self-made millionaires and billionaires in Singapore and across the globe. Just how do they get there..? How have these financially savvy individuals achieved such financial success where many others have failed..?
Outlined below are 8 of the top things that the financially savvy do differently to the rest.
1. They recognise their expertise and their limitations
Financially savvy people recognise where their expertise lies and where they need to seek counsel from other professionals. For those who are not professional money managers and financial advisers, they recognise that a DIY approach is not appropriate. They continue to seek the guidance and expertise of recognised professionals in a wide range of fields. Always remember, it’s far cheaper to learn from the mistakes of others, than your own.
2. They have a natural curiosity and desire to learn
They have a keen curiosity to never stop learning. They are always looking to meet new people in new fields and learn as much as they can about new areas. They will also constantly invest in their own learning and education, whether it be a university degree or short course to learn a new skill.
3. They set goals and track their progress
As the saying goes, if we don’t know where we’re going, then any path will take us there. Financially savvy people are constantly setting goals, to push themselves further and outside of their comfort zones. They also track their progress on a regular basis, celebrating their successes and implementing action plans for where they may have fallen short.
4. They avoid BAD debt
Financially savvy people avoid personal debt for luxuries such as cars, clothing and holidays. You can find out more about the difference between GOOD debt and BAD debt in my article here – http://singapore.feebasedfinancialadvice.com/good-debt-vs-bad-debt-which-do-you-have/
5. They’re playing chess
Financially savvy people are playing chess while everyone else is playing checkers. Put simply, the savvy maintain a long-term focus and act accordingly. Their daily activities are all designed to achieve their long-term goals of achieving financial freedom.
6. They legally minimise their taxes where possible
Those that are financially savvy will put in place strategies to reduce their tax liabilities wherever possible. This could be through tax-efficient retirement vehicles or making tax deductible contributions to an investment portfolio. Find out more about one such strategy in my post on how to pay less tax in Singapore here – http://singapore.feebasedfinancialadvice.com/how-to-pay-less-tax-in-singapore/
7. They have multiple income streams
For the majority of people, their only source of income will be their salary and they don’t have strategies in place to build other sources. The financially savvy take the opposite approach and seek to create multiple income streams. This could be from setting up an online business, building a property portfolio or setting up other ventures.
8. They don’t put off to tomorrow what can be done today
Finally, those that are financially savvy don’t procrastinate or create unnecessary delays. Whether it be setting a budget, saving for their financial independence or other activities, they get started immediately. Remember, to truly take advantage of the time value of money, the best time to get started is today.
I hope you find this list helpful and start to implement some of these activities into your everyday lives.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Adviser with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
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*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.