03 Dec What Is A Money Master?
If I asked you, ‘what is a Money Master, what or who do you see?’
Someone living in a waterfront mansion with a Ferrari in the garage and taking regular holidays to the Maldives?
Possibly, but in my experience that is rarely the case.
In my experience Money Masters are simply everyday people, likely to be living in your neighbourhood right now, who have experienced financial freedom.
Let me explain.
There are at least ten criteria that a true Money Master must satisfy:
- Has a clear plan as to where they want to be
- Knows exactly how much money is coming in and what is going out
- Has significantly more good debt than bad debt
- Grow their wealth every year
- Has multiple income sources
- Chooses to work because they enjoy what they do, not because they have to
- Spends money on experiences, not things
- Has a heart of generosity and gratitude
- Has a great “financial team” around them
- Are not constantly anxious about money
How many of the above list do you tick off?
If you can’t tick off all ten, don’t stress over that. If I am totally honest I would struggle to tick off all ten!
But if you can tick off more than eight, well done! You are well on your way of being in complete control of your finances.
If you can tick off between five and eight, you are on the right track but you still have a lot of work to do. You would likely benefit from having a financial advisor on your team who can help both your strengths and weaknesses.
If you can tick off less than five, then you definitely need to invest in your “financial team”.
If it is any consolation, I think most Australians are in the ‘tick-off-less-than-five’ category. If you are, don’t stress we can help you make money to do what you want it to do, not the other way around!
Did you notice that in the list of ten criteria I have listed, I did not say someone who owns a big house and drives a fancy sports car?
In my experience, the majority (but certainly not all) are not Money Masters.
Whenever I see and speak to people who are flashy, I generally see these people who have high incomes but nothing substantial to show for it.
That fancy car has a very high lease repayment.
The waterfront mansion is rented.
The credit card is maxed out.
There is no savings, no structure and no thoughts of investing.
And usually there is only one source of income.
And once that income goes, they are screwed!
In comparison, Money Masters are simply everyday people, likely to be living in your neighbourhood right now.
If you are walking down the street you would rarely recognise them. They rarely look flashy. They rarely flaunt their wealth.
They can be teachers, farmers, tradespeople, nurses or small business owners.
When you look behind the scenes and they are undoubtedly Money Masters.
They don’t have exorbitantly high incomes (although that definitely helps).
They have complete control of their financial situation.
They have their debts under control.
Each year they get wealthier.
Most of all, they have money doing what they want it to do, not the other way around.
This is not just my experience either. One of my favourite books is “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko where they go into this phenomenon in a lot more detail.
I have met with clients who struggle to live off $200,000 per year.
I have met with other clients who are self-made millionaires who have never earned more than $60,000 per annum.
Did you know that money in itself won’t make you happy? It is what you do with your money that can make you happy.
You have six investment properties – big deal!
You own four Ferrari’s and a Lamborghini – so what!
Have $10,000,000 sitting in your bank account – YAWN!!!
If you are using your financial freedom to make a better world for yourself, your family and the people around you, that is what will bring you great joy.
If you are able to use your financial freedom to see the world, try new foods and meet new people that will bring you great joy.
If you are able to use your financial freedom to fund causes that are important to you that will bring you great joy.
I share this with you because I believe anyone can become a Master Of Money.
Regardless of education.
Regardless of occupation.
Regardless of their current financial situation.
They simply have to focus.
If this is a topic that you would like to discuss in more detail, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your complimentary 30 minute strategy session.
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Disclaimer: This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.
Chris Carlin is an Authorised Representative (No. 1235031 for financial services and No. 514748 for credit) and Master Your Money Now Pty Ltd ABN 65 627 229 681 is a Corporate Authorised Representative (No. 1265677 for financial services and No. 514747 for credit) of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523