(03) 9020 2905Be an intergalactic rock/sport/film star. Be as rich as Bill Gates. Then self-implode in a dazzling global media-frenzied meltdown, like Charlie Sheen. Oh, hang on … that was teenage-hood.
Have a stupendously high-paying, awesome job. The biggest house in the best suburb. Be retired and backpacking the world by 40. Adolescent optimism? Bugger!
DING!
The lightbulb moment strikes most around their early 30s. “Darn it, we don’t have the extreme talents necessary to achieve global financial domination.” (But don’t give up! Employ storm troopers to eliminate the competition.)
Gen Xers’ aspirations are generally now planted in reality (outside the gates of Neverland). Careers, mortgages and/or midgets tend to do that to you.
Here are three term-based goals that should be on every financially motivated Gen Xer’s list.
Short: To make your money work for you, not you for your money. Learn money’s universal rules – delayed gratification, risk versus return, compounding growth, diversification and the power of leverage. Understand them and your financial potential is unlimited.
Medium: To make your “home” work for you. Home is either a mortgage or rent. If it’s a mortgage, get it under control quickly, so it can help you create further wealth. Alternatively, renters have a “cheap” roof over their head. But renting is forever. Invest what you’re saving by not having a mortgage.
Long: To achieve financial independence that won’t leave you reliant on the government age pension. Sure, Gen Y has time on their hands. Gen X has it too. More importantly, we’ve got bigger incomes. Creating wealth takes time. Don’t leave your no-age-pension plan until it’s too late.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.