The first step of the Invest Blue process is to:
To immediately improve how you handle your finances and make a giant leap towards having financial freedom, one of the most important things you can do is define your short, medium and long term goals.
Once you have defined your goals the next step is to identify where you are now and whether you are on track to achieving those goals.
It is not simply a matter of earning more, but of managing what we earn now.
It’s not how much money you make, it’s how much money you keep.
Lifestyle assets such as your house, car and household contents, generally cost you money. Investment assets such as cash, property, businesses and shares, generally make you money.
Non deductible (bad) debt, used to purchase lifestyle assets, generally cost you money. Deductible (good) debt, used to purchase investment assets, generally make you money.
No one expects sudden death, an accident or illness – but what it something did happen? How would you or your family cope financially.
Understanding the power of compounding, your risk profile and the psychology of investing are fundamental to the financial planning process.
Next Step: Challenge