How to get richer: a step-by-step plan works for all walks of life

Hiking in the Himalayas or across the harsh landscapes of Central Australia has much in common with wealth-building.

I have an unusual – some would say stupid – hobby of hiking up and down mountains in remote locations, from Kokoda to the Himalayas to the harsh landscape of Central Australia.

As far as midlife crises go, it’s much cheaper than buying a sports car, and spending hour after hour in a hard slog while concentrating on putting one foot after another puts the brain into an autopilot mode that can resonate with building good money habits.

Whether trekking or building wealth, taking a step-by-step-by-step-by-step approach will deliver results that initially seem unreachable.

Here are six key steps that are helpful both for adventuring and investing, and they work best when repeated, then repeated again, and so on – like one foot after another.

1. Just do it

Often the biggest challenge with any new endeavour is simply to do something.

Fortunately I have a close mate who is a great motivator when planning our next trekking adventure, but when it comes to money motivation most of us are on our own.

Taking that first financial step is vital for getting some money momentum, and it doesn’t have to be a large leap. Just $20 here or $50 there puts people on the trail towards better finances.

2. Look ahead

When trekking over rocky creek beds or rugged mountaintops, hikers always look for the next sign post or small arrow painted on a boulder to show them the right direction and hopefully prevent them from becoming lost in the wilderness.

Building wealth also requires people to look ahead rather than focus completely on the present. Delayed gratification means putting something away today for the promise of a bigger reward in the future, and the longer you look ahead the richer you get.

Hikers on Razorback Ridge in the West MacDonnell National Park. Picture: Ryan Cox

3. Have a map

We use maps all the time whether trekking, driving or trying to find the nearest petrol station or shop, and it should be no different when it comes to getting richer.

Work out where you want to go, then use research – there is so much free stuff online – or professional advice to create a map about how you get from today’s point A to next year’s point B and beyond.

4. Break it down into bite-sized bits

Spending eight or nine hours hiking with 20kg on your back seems daunting, but if it’s split into smaller periods of effort it becomes achievable.

Becoming a millionaire or a multi-millionaire is equally daunting if you simply stare at that seemingly-impossible end goal. Break down all financial plans into small realistic goals, then eventually wealth becomes a reality.

5. Use technology

GPS trackers, emergency satellite communications and portable solar panels on backpacks have made trekking today safer and more comfortable.

Similarly, getting richer has been made much easier by new technologies such as apps and investment platforms. Today you can buy into investments all over the world – even giants such as Apple, Amazon or Microsoft – with a click on your smartphone and just a few dollars.

6. Push through pain

Last year I broke my foot halfway along the 230km Larapinta Trail west of Alice Springs, and limped the last 110km thinking it was just a nasty sprain. Now I’m glad it happened, because it was a valuable lesson in persistence, with the added bonus that my mates and family now reckon I’m tougher than I really am.

Growing wealthier will have painful periods to be pushed through too, such as sinking investment markets or surging interest rates.

Adversity fuels success. Walt Disney once said “a kick in the teeth may be the best thing in the world for you”.

Originally published as How to get richer: a step-by-step plan works for all walks of life