Invest Like a Boss Lady:
Building Wealth and Creating More Choices and Freedom in your Life
We can’t workout once or twice and expect to feel great, be full of energy, free of pain and super fit with a banging body. Likewise we can’t look at our money once or twice or invest once or twice and expect to create financial freedom. Consistency is EVERYTHING.
You have the power to create an extraordinary life filled with choices and freedom, investing and creating passive income is the single most important thing that will get you there. In this article, we will guide you through the steps to invest like a boss lady, empowering you to build wealth and live your dream life.
Define what success looks like to you?
Success looks different to everyone, is your version of success what you truly desire? Or is it the version of success you think you should have? Start by getting crystal clear on what success looks like to you. Visualise the life you desire, envisioning where you want to live, the experiences you want to have, and the places you want to travel to. This will help you calculate your financial freedom figure.
Determine Your Financial Freedom Figure
To bring your vision to life, it’s crucial to determine your financial freedom figure. This figure represents the amount of investable assets required to generate sufficient income to support your desired lifestyle. Calculate your monthly expenses for a basic lifestyle, your current lifestyle and your dream lifestyle, then factor in inflation. This will give you three different desired income levels, which will require different levels of investable assets. This article shows you how to calculate the amount of investable assets required at different return levels.
Understand Your Money Story & Let Go of Limiting Beliefs
We all have stories, thoughts, beliefs, patterns and behaviours around money. Things that we’ve picked up along the way, through our childhood, through what we’ve absorbed from the people around us and the society we grew up in. These significantly impact our financial reality and our ability to create financial freedom.
So many of us heard things like money doesn’t grow on trees, we can’t afford that, it’s rude to talk about money, they only have money because they manipulate people, money doesn’t make you happy, pay attention at school so you can get good grades, go to university and get a good job.
Challenge and release any beliefs that suggest wealth creation and financial freedom are unattainable for you. Embrace the mindset that you can achieve whatever you set your sights on, opening yourself up to new possibilities.
Gain a comprehensive understanding of your cashflow and stop any leaks
Ok, let’s get down to the numbers. I know you may have some resistance to this, but it’s what’s going to set you free. Take a look at what money is flowing in and from where (your income) and what money is flowing out and to where (your expenses). This will create a huge level of awareness of where you are at financially. Look at whether or not your money is flowing in alignment with your values and if there are any leaks. Are you paying for things you no longer value or need? Are you earning and spending money in line with your values? Need help tracking this, download my money management guide here.
Intentionally allocate funds to savings, debt reduction and investing
Now you have a good handle on where your money is flowing, it’s time to take intentional action in allocating your funds. By strategically directing your finances towards savings, debt reduction, and/or investing, you can make significant progress towards your financial goals.
Allocate a portion of your income to build up your savings, creating a safety net for unexpected expenses and future opportunities. Simultaneously, prioritise debt reduction by allocating funds towards paying down outstanding debts, freeing yourself from financial burdens and increasing your overall net worth. This has the added benefit that once it’s paid off, you’re able to allocate those funds to growing your wealth and creating passive income.
Lastly, consider allocating a portion of your funds towards investing, allowing your money to work for you and generate long-term wealth. By being intentional with your financial decisions, you can create your dream life.
Increase your income so you can increase the amount you're investing
Even more importantly though, focus on ways you can expand your income. Review what the market rate is for your role and see if you’re getting paid that, there may be an opportunity to ask for a raise. Are you able to do some freelance work or start an online business? Does your car sit on the street or in the driveway during the week? If so, can you rent it out on a site like turo, uber carshare or goget. Can you spend a few hours a week doing surveys? What education should you invest in to increase your earning capacity? There’s only so far you can cut expenses, expanding your income may seem more challenging but it’s going to have a far greater impact in the long run.
Explore Different Investment Vehicles
Commence (if you haven’t already) and diversify your investment portfolio by exploring various vehicles that can help you achieve financial freedom. Consider real estate investing, where rental properties can provide a consistent income stream. Explore the share market, either through individual shares or exchange traded funds, allowing you to participate in the growth of companies. Additionally, consider starting or investing in businesses that align with your interests and expertise.
Dollar-Cost Averaging
If you choose to invest in the share market, consider dollar-cost averaging. It’s an investment strategy that involves regularly investing a fixed amount of money, regardless of market conditions. By investing consistently over time, you can take advantage of market fluctuations and reduce the impact of short-term volatility. This disciplined approach allows you to accumulate wealth steadily and benefit from the potential growth of your investments.
Harness the Power of Compounding
Compounding is the magic ingredient that accelerates wealth creation over time. As your investments grow, the returns they generate can be reinvested, leading to exponential growth. The key is to start where you’re at and remain committed for the long term. Harness the power of compounding by reinvesting dividends, interest, and capital gains, allowing your wealth to snowball over time.
One day you’ll thank yourself for educating yourself about money and learning how to invest because it completely changed your life. Let that day be today. By getting clear on your vision, determining your financial freedom figure, letting go of limiting beliefs, exploring different investment vehicles, practising dollar-cost averaging, and harnessing the power of compounding, you are well on your way to financial independence.
Embrace your financial journey with confidence and determination, knowing that you have the ability to shape the life you desire. Start investing like a boss lady today and watch your wealth grow as you create the choices and freedom you deserve.
If you’re ready to have a paradigm shift around abundance, upgrade your money beliefs and create true wealth and passive income, sign up to my newsletter to transform your relationship with money and have access to financial education.
