A financial expert has revealed the four key strategies she swears by for building wealth, and why setting your ‘mindful money number’ is key to financial success.
Canna Campbell, from Sydney, said there are four things she does to get richer without having to work harder.
It all comes down to adjusting your mindset, learning how to invest and where to put your money, and setting a magic number that you need to achieve in order to be as financially free as possible.
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1. Adjust your mindset
The first thing you need to think about if you want to build up your money portfolio is adjusting your mindset.
Canna said the ‘right attitude’ is key to financial success.
‘Even if you’re coming from a place where you’ve been drowning in debt, or you’re still drowning in debt, adjusting your mindset is all about moving forward and re-building,’ Canna said in a YouTube video.
To do this, the financial adviser recommends you ask yourself honestly how you feel about money, whether it’s negative or positive.
‘Then, you need to work on putting aside any negative, you so you have really fertile soil to plant your own tree of wealth,’ Canna said.
The financial adviser sets weekly, monthly, quarterly and annual goals to help her achieve her goals.
2. Have a mindful money number
The second thing Canna swears by is having a ‘mindful money number’.
This is basically the ‘magic amount’ of passive income you need that would mean you could either stop work completely or cut back to part-time work and make the choices you want to make each year.
For Canna and her family, this figure is around $200,000 per annum, and she wants to have built that annual figure by 20 December 2030.
‘Your passive income needs to more than cover your living expenses,’ Canna said.
‘It needs to never run out but grow over time. This number is what gives you true and authentic financial freedom.’
3. Learn to invest
Thirdly, you will never achieve your realistic mindful money number unless you learn to invest.
‘There is work that is involved in creating $100,000 or $200,000 of passive income every year,’ Canna said.
‘You need to be investing on a regular basis, and you need to to re-invest all of your passive income to compound growth opportunities, whether that be interest off a bank account, dividends from shares or rent from your investment property.’
To do this, Canna said you absolutely must look at your superannuation or pension, as well as any savings or share portfolio that you own.
‘All of this is a vital element that helps you to achieve your mindful money number,’ she said.
4. Use ETFs and LICs
Finally, Canna said you don’t have to spend hours researching stocks, investments and companies, and worrying about which areas you should be picking.
Instead, you need to try using ETFs (exchange-traded funds) and LICs (listed investment companies), which do the hard work for you.
‘Do not worry about which areas your are picking and wasting your time doing hours of research,’ Canna said.
‘You’re far better off out-sourcing to listed investment companies and industry-sourced ETFs, who will build an immediately diversified portfolio that matches your risk profile.’