Part of our motivation in setting up this website is to share with you some tools and ideas, as well as our personal experiences, around not just Essential Oils, Health and Happiness, but also Wealth and abundance. It is amazing that something as important as managing money is never taught, but we are left to struggle and learn, often by mistakes, how to best manage our money, or our wealth, our future finances and our financial position in cases of struggles and sometimes disasters.
We are forever grateful to the dōTERRA business opportunity, and the additional income it is providing, but we have, and continue to learn some important truths – so time to share.
First Lesson: SPEND LESS THAN YOU EARN
As a young lawyer, I am the first to admit that I got caught up in the material world of partners with fast cars, big houses and catamaran yachts. Even in Australia I was a party to the beast that is CBA and Colonial First State. I managed the Western Australian advice business and had a 6 figure travel budget – servicing the entire WA…so very little thought was given to flying around Australia! This I can promise you rubs off on your personal life.
You know what I mean – TV ads for global travel – TV ads for Credit Cards and Loans – TV ads for the new Car with Bose sound systems…not saying there is anything wrong with Bose sound systems, global travel or loans, but what I never leant was I needed to take control of my own decisions. As someone said recently, rather say: “I choose to holiday on the Sunshine Coast this year instead of flying to Thailand.” Why? Because part of that choice is: “I choose to save more money towards a better lifestyle later in life and I choose to pay off my ‘bad debt'”. “I choose not to go into debt nor buy the holiday on my credit card”. It is all about my/your choice.
You, and I, need to CHOOSE to spend less than we earn – it’s that simple! Once you do that, then, if you don’t like the lifestyle that it offers you, you need to seriously look at increasing your income. BUT, do not increase your lifestyle cost BEFORE you increase your income. Did you know 89% of divorce and relationship breakdown can be attributed to financial management!
The 4 Laws
I recently read this book again and cannot recommend enough that you read, and apply the 4 laws of Financial Prosperity. If I can share with you just a few important lessons from the book:
“Interest is a formidable opponent. Once the game starts, he never rests. You may work 50 to 60 hours a week to keep up with him, but he works 168 hours a week to keep ahead of you. He never takes a timeout or a half-time break.
He works every Sunday, every holiday, and every night. He has no mercy. He even takes your money when you are sick in bed. And if you lose your job and miss payments, he will take your house.” – Blaine Harris and Charles Coonradt.
So how about this example: Did you know:
If you have a home loan:
Amount borrowed: $500,000
Interest Rate: 5%
It will cost you $2,684 per month in repayments over 30 years to pay back the bank. The total repayments with be $966,278 (inclusive of interest) – scary hey?
So give Interest a kick in the butt:
Can you find $10 per day and increase your repayments by $300 per month? Make your own lunch, drink one less coffee, catch the bus, no Netflix?
The same loan, $500,000
The same interest rate 5%
Your NEW REPAYMENTS: $2,984
This simple change can reduce your home loan so much that you will pay it off in just of 24 years. (6 years sooner). You will save $106,645 in interest!
BUT, if you then invest the repayments for that extra 6 years (and choose not to blow it) you can accumulate:
Over 6 Years
Interest growth 7%
Estimated accumulation: $212,224
Interest is an evil bloke. Trimming just $10 per day could mean an extra $212,224 in your pocket and a saving of $106,645 in interest to the bank. Please do yourself a favour, read the book.
0478 318 669