Issue #6 – 2nd August 2019

1) Understands money (to get enough of it)

2) Innovative (developed problem solving skillset)

3) Control over their time and their life

 

Retirement or Total Financial Independence?

What Do You Choose?

Retirement is stopping work with not enough money, anxiety, limited options and at times, stress.  Financial independence is enough money for everything, enough time for everyone, sooner rather than later. 

Okay, you might frustratingly respond by saying something like, “Doesn’t everyone want total financial independence!?  Well, people want lots of things; however, the evidence is clear … 90% of Kiwis never achieve total financial independence.  Retirement or total financial independence … what do you choose?

 

Financial Planning

Positioning for Success

Positioning for retirement and positioning for total financial independence.  To position for retirement, own one rental property, save in Kiwisaver and hope for the best, believe that paying off your mortgage and being debt free at retirement, plus having a few thousand in a Kiwisaver or the bank is all you will need.  Believe that you will downsize your home when you retire, to provide some capital, off which you can derive an income. 

Do you want total financial independence?  To achieve total financial independence, start right here.

 

 

Mindset Alignment

Align your behaviour with your goals

Mindset alignment is about matching your behaviour with your big, not so easy to achieve goals.  The odds of you achieving total financial independence generally are not good – 90% of Kiwis fail.  YOU don’t have to. 

STEP 1: Just decide, right now, that you are going after it, no matter what.  How did that just go for you? 

STEP 2: If you know what to do, how to do it and will commit to achieving it then go for it.   If you are not sure, seek help now (don’t wait until you are ready or until it is convenient). Go ahead … call 0800 11 90 80 and talk to Kim … OR go here

 

Investing

Price is what you pay; value is what you get

Can I be a value investor in my own business?  Yes!  How is that possible?  Okay, a bit of revision – the trading price of any investment and the underlying intrinsic value are different.  Intrinsic value is driven by the performance of the asset.

How do we find a good business?  That is all about the economics of the business.  The financials are useful, but the economics of the business are the key to business success.  The economics of your own private, closely held, small business is based on a specific set of resources.  When you combine this specific set of resources together you unlock the economics of the business – and a future money machine.  You then have a reliable approach to building a solid business.  That means capital (a lump sum of money later) and a reliable cash flow along the way.

The first one is the right people on the bus.  The right people have the right attitude and a work ethic that aligns well with the business owner.  They willingly support the business owner, customers, the company Vision, Mission and Culture.  They are trustworthy and don’t require much management.  Indeed, from an operational perspective, they manage themselves.  They provide the business and the business owner leverage.  Right there is powerful business economic #1.

 

 

“Dear Past, thanks for the lessons.
Dear Future, I am ready.”

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