Imagine being on one of the world’s rich lists.
Student debt worries? Gone. Rent or mortgage troubles? A thing of the past. Late fees on bills or missing payments? Never to be seen again.
To learn about building wealth, we’ve looked to teachings from the world’s richest to come up with seven lessons rich people teach their kids about how to build wealth.
1. Make your own luck
Luck is made up of two parts: being in the right place at the right time, and seizing the opportunity presented to you.
Sure, you’d be lucky to win the lotto, but we’re talking a little more calculated than that. When you make good choices with your hard-earned dollars, you make your own luck. Like opening a savings account and regularly contributing to it, so future you is prepared when the washing machine packs up, or your car breaks down.
So transfer that $10 you were about to spend to your high interest earning Boost Saver, or better yet – switch on the Lock Saver Feature so you can transfer money in, and lock it away to avoid making impulse purchases (32 days' notice period applies to access any locked funds).
2. Get the right kind of education
Book-smarts are great, but they aren’t the be-all and end-all. When it comes to improving your financial literacy, the learning pathway is anything but straightforward. According to Steve Siebold, author of ‘How Rich People Think’, if you want to make it big in finance, think quality over quantity.
“Many world-class performers have little formal education and have amassed their wealth through the acquisition and subsequent sale of specific knowledge,” says Steve.
Pay close attention to those who have walked the path you want to take, and learn from their successes, but also their mistakes and failures. You’ll build your own bank of knowledge - which, with the right application, could turn into banks full of bucks.
3. Put in the hard work now, reap the benefits later
The more you work, the more you earn. Pretty simple huh? By entering the workforce early and putting in the hours, the more knowledge and experience you’ll accumulate, which could become more money for you to earn.
Putting in the hard work now will have future you saying ‘thank you’ (hopefully on a tropical island somewhere). And don’t forget, the earlier you start working, the earlier your superannuation starts to grow, setting you up for retirement.
4. Think and grow rich
Wealth isn’t just about dollars in the bank, it’s about your state of mind.
Multi-billionaire, and founder of the Virgin brand, Sir Richard Branson regularly speaks about how he measures success by his happiness – not by what’s in his bank account.
“It’s a common misconception that money is every entrepreneur’s metric for success.
“It’s not, and nor should it be. Most people would assume my business success, and the wealth that comes with it, have brought me happiness. But I know I am successful, wealthy and connected because I am happy.”
5. Take risks, but be smart about it
We all know the saying, “you have to bet big to win big”. But before you take a big leap, like investing in a new business venture, or buying your first home, it’s a good idea to have safety nets in place that make any potential falls a little less frightening.
6. Learn from your mistakes
There are no failures, only lessons. Even world-famous inventor Thomas Edison said he never failed, but successfully discovered hundreds of ways things did not work.
Making mistakes is where we grow and learn the most. Just make sure you don’t make the same mistake twice!
7. Invest in your future
We’ve covered investing in education, and in experience, but what about actual investing?
Historically, shares and property investments have gone up in value faster than people’s wages and inflation, meaning those with invested assets are more likely to get richer over time than those without.
It’s never too early (or late) to start building your wealth. Virgin Money’s Go account has a range of money-saving features like Round-Ups, Lock Saver, bill-tracking, not to mention some great rewards and epic perks.