What’s your wealth style? Are you someone who looks wealthy and does wealthy things but doesn’t have the funds to back it? Or are you someone who has plenty of money and accumulated assets, but favours saving over spending?
Wealth is different for everyone, and unless you’re born into it, it’s your business success that will enable you to live your life in the wealth style of your choice.
I know I’ve said it before but being in business is fundamentally about making profit. There’s no fun in working long and often stressful hours to break even or return a loss.
It’s for this reason that your business and personal wealth journey should be an unbreakable bond that’s formed the moment you start your business and underpins everything you do throughout your business life.
While putting in hundreds of hours of effort, managing and working the tools is a given, hard work and dumb luck just won’t cut it.
Planning and implementing strategies that maximise your efforts is key to your success. This will include minimising tax and protecting your personal assets including your family home, especially when navigating inevitable cashflow ups and downs.
Understanding that you’ll need professional help and investing in the best advisors you can afford is a good first step.
Your core professional team will comprise a business accountant. That’s a BUSINESS accountant who can provide insight and strategy, financial management, has a strong grasp on real time accounting systems, and a clear understanding of your business goals and how they impact your personal wealth.
Your reward for effort will come when you extract wealth from your business for your lifestyle.
In the beginning it might be as basic as taking a regular wage and making super contributions for yourself. Later as profit increases and cashflow steadies, there will be other strategies around asset acquisition and investment strategies for creating passive income streams that build your wealth and fund your retirement livelihood. Extracting wealth can also allow you to pay for the things you want now – a new home in a better neighbourhood or your dream car.
The point is, you’re more likely to achieve your wealth goals, and have the freedom to live the life you want according to the style of wealth that’s right for you, when your personal prosperity is factored into your business planning.
So, what’s next…
Know your wealth style. Whether you’re a spender or a saver, either way you’ll need to know how your business will need to perform to support it.
Understand how you feel about money, debt, risk and wealth and what gives you purpose and a sense of satisfaction. This will shape your motivation, approach to business and your personal wealth.
Then, review your business plan to ensure it is directly aligned with your personal wealth plan.
Get advice for implementing strategies that will achieve your business and personal wealth outcomes.
Whether your wealth style is to live lavishly or to take a more discerning and private approach, your personal prosperity for your lifestyle today, and in the future, depends upon succeeding in business.
If you found this article helpful, and you need advice for implementing business strategies so you can succeed in business, extract wealth and enjoy personal prosperity, please contact me on +61 2 9699 9171 or email shane@makecentsaccounting.com.au
This information (including taxation) is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Make Cents Accounting strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
