Discover the simple wealth trick that only 4% of us use

IF YOU find yourself broke at the end of every pay cycle, there’s a simple trick you can do to take back control of your finances.

I REMEMBER the moment like it was yesterday. My wife and kids were in another room, I could hear them playing and I had just realised I wasn’t going to be able to pay all the bills that arrived that day.

Do you get to the end of your pay period and wonder where all the money went? Why is it that there is never any left for the things that you know you should be doing for your financial future?

It turns out that there is one thing that the wealthy do that sets them apart. I’ve spent over 20 years studying and researching the wealthiest people in the world and discovered that they have some simple strategies that you can use for your own financial success.

I’m sure you have those dreams of being able to buy what you want when you want, to be free of money stress and able to do what you want with your money. This is what I like to call being financially free.

The problem, unfortunately, is that only 4 per cent of the population are financially free and in control of their money.

Don’t max out your credit card paying basic bills.

During all my research, there was one thing that consistently set that 4 per cent apart from the other 96 per cent of the population.

By implementing this one thing, you can guarantee your financial success and rid yourself of money stress for good.

REMOVE FINANCIAL STRESS

What is this one thing? Automation.

Automation is where you direct your money to where you want it to go within 48 hours of receiving your pay using automatic transfers from your main bank account.

This is a process that you can easily set up yourself in your online banking.

And this is the main thing that separates the wealthy from all the rest. The wealthy invest first and spend what is left; everybody else spends first and hopes to invest with whatever is left. The problem is that there is never anything left.

To overcome this problem, automation ensures that you allocate some of your money to your future financial self. It takes all the stress out of money. You no longer need to rely on self-control, by automating the process you take temptation, forgetfulness and procrastination out of the equation.

Most banks now allow for easy automation. You can set it up to take money out of your everyday account before you notice it.

It’s all done for you, automatically, each and every time you are paid.

The facts are that you can’t work forever, so you need to be ensuring you are putting some of what you earn now aside for later.

This is the money you will use to invest and grow your wealth.

The most important point to note is that this money should be automatically transferred from your main bank account to a separate investing account within 48 hours of being received.

The 48 hours is used to allow for any hiccups in your pay in the event that there are delays for any reason. They sometimes happen, so allow for them and you don’t have to worry about them impacting your plans.

Now if you are in a job where your money is a little less regular, then this process is a little more complex, however, it just means you need to schedule the automatic transfers for a time when you know the money will be in your account. This could be that you automate your transfers monthly instead of weekly, or vice versa.

Other automated transfers that you can make include your housing costs, such as rent or your mortgage, any other debt payments and your living costs, such as food, clothing and motor vehicle costs.

The aim of automation is to ensure that your main operating bank account only contains money that you will use throughout the period between pays for general living expenses.

This way, you know exactly how much is available to spend. If you run out of money from this account, you know you only have to wait to the next pay to start again. The discipline this creates is so empowering.

‘I CAN’T DO THIS, IT'S TOO HARD’

You might say that, but the alternative is much harder.

By not doing something now for your future financial self, you risk having to work for a lot longer than you want to, or worse, having to retire without enough money to maintain the lifestyle you want.

Just like I did that moment all those years ago, decide to take charge of your money today, automate your cash flow and start building for your future financial self. You will thank yourself later.

Andrew took control of his money and his family are now able to pay their bills (they even just returned from a holiday).

Andrew Woodward is a mindshift.money accredited money coach based in Sydney who teaches people to take control of their money and invest for their future, simply and efficiently. Sign up for his free weekly money tips at his theinvestorsway.com.au.