A smart man makes a mistake, learns from it and never makes that mistake again. But a wise man finds a smart man and learns from him how to avoid the mistake altogether” – Roy H. Williams.

Does it take luck to become wealthy? Some people say so, but I say that a smarter choice is to make your own luck … at least you have more control over that.

So how can you make your own luck? By doing what countless others do to grow their wealth; making smart money decisions that minimise your expenditure and maximise the return on your investments. Take a look at the following habits and strategies. How do they align with your own?

1. Save More Than You Spend

Don’t discount the power of reducing your spending.

• Begin by rethinking your spending. Are you living above your means?
• Adopt the mindset of “making do” when it comes to spending: Buy only what you need – and pay cash for it.
• Re-use and/or repair what you already have.
• Borrow and/or share rarely used items with others.

2. Wipe Out Your Debt

As you reduce your debt and free up money you’ll discover a snowball effect; you’ll have more money to pay off your remaining debt faster.

Other benefits include less stress, more money for the “extras” that make life enjoyable and more money to save for your future. You’ll also free up money – and opportunities – to follow through with your wealth creation plan. This plan should include wealth building strategies such as buying a property for investment.

3. Use Time To Your Advantage

Time is your friend when it comes to building wealth. For example, if you’ve decided to buy an investment property time is a necessary ingredient for it to grow in value – even if you bought at a discount. (Buying at a discount simply means you’re buying someone else’s growth … which took time.)

If you’ve already purchased a property for investment are you reducing the interest you pay using an offset account tied to your loan?

If not, have your accountant set up an offset account and each payday toss your pay (and any rental income, bonus cheques and so on) into it.

Charge your necessities throughout the month and then pay your credit card bill in full from this account so that you don’t incur interest.

But why bother with an offset account?

The more cash you have in your offset account the greater the interest it will earn and the less interest you’ll pay on your loan because the balance in your savings account will offset the balance of your loan.

4. Make More Money

The other side of the wealth creation coin is making more money. Essentially there are two ways to do this:

• Trade your time for money (a job or business).
• Put your money to work for you by creating passive income. One way to create passive income is to buy property for investment.

5. Avoid Lifestyle Inflation

Lifestyle inflation simply means you absorb any extra monies into your daily living. An easy way to prevent this is to put any extra monies you receive away before you get your hands on them.

6. Invest Your Property

While investing in the sharemarket can make you money, buying a property for investment is more “user friendly”. It’s easier to understand and you have more direct control over your results. Why do you think the 1% choose property investing to grow their wealth?

If you want to meet with like-minded people sharing the same interest for property investment, register to attend our next Property Investor Night. At these FREE events held all across the country we discuss where the growth markets are right now, and share ways you can navigate your way to financial freedom through investing in property. www.positiverealestate.co.nz/nzpi

Sue is the Head of Education and Director of Postive Real Estate (NZ) Ltd and also one of NZ's leading experts with a diverse knowledge of all aspects of property investing. Sue spent the last 15 + years immersed in the property market. Sue speaks at and runs many property events and has mentored many of New Zealand’s leading investors. Sue works with her investing clients to assist them to grow and enhance their portfolios, whilst keeping her eye on their end goal – financial freedom and choice. sue.irons@positiverealestate.co.nz