What are your wealth habits?

Budget is Not a Dirty Word for the Wealthy. australian coins save money budget wealth plan piggy bank learn lesson work

As the saying goes – “People Don’t Plan to Fail they simply Fail to Plan”

Ask any successful person and they will know their numbers inside out.

You cannot drive a car without looking at the dash board.

Well, some people do, but it’s not advisable.

Most Poor people tell me they don’t earn enough to begin saving

Or they tell me as soon as they pay off their debt they will start saving.

Or they say once they reduce their expenses they will start to save.

However they never get around to it and before you know it they get older and it’s now too late to save as they are really too old. bank-savings-house-couple-save-property-meeting-budget-300x199

They turn 65 years of age and they are still trying to pay off that debt or loan or expenses they spoke about 40 years earlier.

Life just gets in the way.

Or the person who said they should have invested in that property 10 years ago and in 10 years time they will say the same thing.

“I should have done that 10 years ago…”

It’s difficult to change habits or change your pattern or blueprint but those who start off with the right behaviors are the ones who are financially independent.

Take budgeting for example.

Budgeting does not have to be a Dirty word if you are not good at looking at your numbers.

A very simple system is to do the following and over a life time it will make you financially independent

Simply, put aside 10% (20% is even better) into a savings account first or pay off the mortgage first or pay the shortfall on an investment property first, Before spending anything on yourself.

Than spend the rest.  . 


It’s the Budget you have when not having a Budget.

You will find you won’t miss it.

I remember a client who was paying $2,000 a month off her home mortgage and after 15 years she had fully repaid the loan.

For the next two years she had an extra $24,000 a year available but could not tell me where she had spent $48,000 in the last 2 years despite the fact that when she was paying $2,000 a month on her home mortgage she did not even miss it.

(People’s expenditure tends to increase in direct proportion to their incomes increasing. So the more one earns the more one wastes with nothing to show for it over a lifetime).

So she immediately bought an investment property costing her $2,000 a month in mortgage repayments and in her words she did not miss $2,000 a month in her spending if she took that out of her budget first before spending the rest.

Most poor people spend everything first and make excuses for not saving.

Whether they earn $30,000 a year or $300,000 a year, they will have no assets accumulated over a lifetime.

Over my professional life as a Practicing Accountant I have seen this happen over and again. budget

It’s not the income one earns alone that determine ones wealth but what one does with it.

More accurately the rich or poor habits they have over a lifetime.

Put another way the disciplines one puts in place over a life time.

I have seen people earn $65,000 a year and still manage to accumulate several properties, pay off their home and are self funded retirees, not relying on the government pension.

I have also seen people earn $600,000 a year and by the time they reach retirement age they have only paid off their home loan and need to rely on a government old age pension in their retirement.

So develop good habits from young and let time take care of the rest.



Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.



Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Avatar for Property Update


Ed is a founding partner of Chan and Naylor accountants and a leading property tax specialist. He has co-authored 3 best selling books. As a seasoned property investor he shares his unique understanding of the relationship between property investment and tax. Visit

'What are your wealth habits?' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.



Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...