Now, at the end of this video I'd love to know what you think about this video and also if you have any other tips and tricks that you could share that will also help millennials get ahead. Now, the biggest and best thing about being a millennial, you have the benefit of time. You have so much time to achieve things but the earlier you get cracking and do something with your finances, start becoming friends with your finances, the bigger and better the results are going to be and I promise you it's going to be so much easier and so much more fun. I promise you, you will never regret it. Tip number one is mindset. Stop thinking about the doom and gloom and start thinking about the solutions, start thinking about what you can create for yourself. Even if it's only something really small, start doing it because as you do it you see the results you see how powerful and people who you are. Also have a really good think about your mindset when it comes to spending. My money mantra is only buy what you love, value, use and appreciate.
Building wealth has actually nothing to do with how much you earn but what you do with what you earn. Don't get me wrong I love a luxury purchase. However, I do it within a balanced approach. I prioritize my financial goals and my financial successes before I go and reward with some some extravagant luxurious purchase. Step number two is to have a financial snapshot You need to understand where you stand financially right now. So, open up your Excel spreadsheet and write down today's date and write down all your assets, all your liabilities and how much passive income you earn. Now, when you first start doing this it might seem very small. Not much to put into the Excel spreadsheet but as you see as time goes by and you regularly update this Excel spreadsheet, you will see that you're actually getting wealthier and wealthier and because you'll see that progress you'll be more motivated and more committed and connected to growing these numbers.
So when it comes to what you put in that Excel spreadsheet. I'm really sorry, it doesn't include cars, depreciating assets, even those luxury purchases like a designer handbag. It's real financial assets So you'll write down your retirement savings such as your 401k plan or your superannuation account. You'd write down any cash savings that you have any investments that you might own like shares or term deposits or even property or bonds. Put them down in this Excel spreadsheet and add them up. On the other column in the Excel spreadsheet you write down all your liabilities. So any credit card debt that you might own, any student debt that you might have, any investment loans or mortgages. Write down these numbers and add them all up. This will then enable you to create a net figure.
This is where you take the assets and deduct the liabilities. It will give you a net wealth bigger and as I said, make sure you put down today's date. In the third column, I want you to write down how much passive income you earn. At the moment it might be zero, but that's something we're going to learn to build by watching my videos and being subscribed to this channel. Now examples of passive income you might earn it things like earning interest off bank accounts you might only be $1 per month that they earn in interest and that's okay because I'm going to show you how to build it.
We're going to really turn up the volume on your passive income because that is the key foundation to true financial independence and security. Now, every time something changes in your situation or even every month, go into that excel spreadsheet and update it review it. See what is working and see what is growing. Maybe your employer is putting more money into your superannuation .account Maybe you're paying off those credit card debts. Now, as I said review and update this Excel spreadsheet on a regular basis. It's a little bit like losing weight or going on a fitness plan. When you jump on the scale, you can see exactly how much you weigh and that's means you can set the goals as to how much weight you want to actually loose.
Now, when you see that weight coming down. You're feeling more inclined and more motivated more passionate about sticking to the diet, the exercise plan because you can see it's actually working. This is exactly the same principle when it comes to that wealth spreadsheet. You can see that you are actually getting wealthier. You can see that financial security is realistic and you can see how powerful and capable you are. So you keep going with the strategy.
Step number three is to have a budget. Now, I've already created two or three videos around how to budget and how to manage your cash flow. So make sure you watch these videos and I will link them in the video description box below, but having a budget is not about being restrictive or depriving yourself or being mean. It's just simply about having spending boundaries so that you don't go and blow all that money and wake up one day and go woah, where is all my money gone? That is not what what we want to do. We want to actually use our money and spin it and invest it and save it wisely before it all goes and when you have a budget you can actually put in the budget your financial goals. So say for example, you have a goal to save up thirty thousand dollars for a deposit on your first home. In your budget you put in a regular savings plan so that you make it actually happen. Step number four is to set financial goals.
You need to have financial goals that are short, medium and long term. They need to be detailed. So you need to say to yourself. I want to build up a passive income of $100,000 per year or I would like to buy an investment property worth $300,000. You need to have a numerical details in your financial goals and need to be able to articulate them. So if you bump into me in the street and decide to come up to say hi, which I would love. I want to hear what your friendship goal is. I want you to turn up and say hey Canna I watched your videos on YouTube, my financial goal is to get rid of my $10,000 credit card debt by January 2019. I want to hear exactly how much and by what deadline because it makes you accountable. Puts a lie on the stand and you know that time is ticking so you'll pull your finger out and make things happen.
So that goal must have it an amount and it must have a deadline. Never say in three months time or in six months time because you're always pushing that goal into the future. Give yourself up a really strict deadline so that you work towards it all the time. These short and medium-term goals can be daily and monthly, quarterly and by annually and annually. Make sure that they're all in line with each other. So you all your short-term goals are positively aligned to the achievement of the big picture goal. I love that saying we always overestimate what we can do in one day, but we underestimate what we can achieve in one year. By breaking one big goal into little bite-sized mini manageable and achievable goals just like the principles of a thousand dollar project. This is how we get stuff done.
This is how we progress. This is how we succeed. Step number five is to educate yourself. Make sure you subscribe to my channel. Make sure you're reading books listening to podcasts listening to books on Blinkist. This is incredibly important. You need to be feeding your brains with you understand what money is. How money work, how to use money, how to spend money, how to invest money and how to grow money. Make sure you've also subscribed to my channel but also you subscribe to my website.
Every week I send out the sugar hit and I'm back to blogging on a weekly basis. So I share with you what I'm doing with my money and on top of that I also have a special private membership group called the sugar tribe. Which you can join and for most people is actually tax-deductible because it's financial education and empowerment. We all share our financial goals together. We share tips and tricks and every week I talk about books that I'm reading. I share with you other key points about those books. It's an incredibly connected and powerful group where we're all helping each other achieve our financial goals because we're making each other accountable. Everyone is welcome to join that group and I will link in the video description box below how to join it, but as I said as a minimum make sure I subscribed to my website because that is free.
I've also created a free ebook which is going to be made available to everyone that subscribes to my website. When you subscribe you'll get a book. It''s a book that gives you through steps to follow to get back in touch with your finances. To start clearing the decks and actually making sure that you're building a strong foundation of factual wealth and you're doing the right things now so you can benefit in the future. Now, if you've already subscribed to my website and think oh my gosh, I'm going to miss out on this. Don't worry. It's okay I'm actually going to be sending it out to everyone that is already subscribed. So don't unsubscribe. Stay there and for everyone who's not subscribed make sure you do so right now.
The links are in the video description box below to sign up. Step number six is just do it. Stop all the talk and all the thinking about this is something you want to do, start doing it. I am the polar opposite of all talk, no action. In fact, I'm so dying to get myself in trouble because I'm no talk or action. I will go and do something and then tell people I've done it and he was like what huh? When did you do this like to do that? How did you do that gets me into trouble sometimes but you know what, I don't really care because I get stuff done. That is how I get ahead financially. So stop all the chatter in your mind talking to your family your friends about your dreams and your passions. That was great but tell them what you are actually doing rather than what you're going to do.
Make silence be your success. Just get out and start doing it and as you do it you're going to inspire other people to keep doing it as well. So make sure you communicate to people what you were doing because it's seriously powerful and magical. Alright, my final tip is tip number seven and that is to start investing. Of course, it's important to save and save up for those big financial goals, like buying your home paying ,off your debt those aren't really important, but once you've done that start investing start building long-term passive income streams. Whether it be through a portfolio of properties build it one property at a time in a really conservative manner.
Build a share portfolio if that's what you'd really like. Start building investment portfolios now and on that note your retirement savings account are actually your investment portfolio. You already got one your superannuation account is an investment portfolio. It's just simply locked by the government to stop you from spending it because we're all really bad what we have temptation. So go and have a look and where your retirement saving money is invested. Don't just say to me oh Canna, I'm a superannuation money is with hostplus. That's great. So hostplus is just a platform. It's just a shopping basket. What are the ingredients inside your shopping basket? I want to hear about where you've invested your superannuation money or your 401k plan or your RSA account or your pension.
I want to know where you are investing your money. I do not want to ever hear while I'm in the default balance fund because that's what my employer picked or that's what my superannuation account provide a people for me. No, no, no. No that is completely wrong. Make sure it's invested where you want your money to be invested. Make sure it's invested for your long-term capital growth and income opportunities. I promise you if you can invest just a little bit of time right now, as well as on a regular ongoing basis where you check in to see how your financial health and fitness is going you will experience exponential growth in your financial wealth. You will see the power and the effect of compounding growth really kick in and you'll be a lot more motivated and a lot more connected and committed to growing that wealth.
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Posted from my blog with SteemPress : http://iread4u.live/2019/04/25/7-steps-to-financial-freedom-independence-for-millennials-students-sugarmamma-tv/