In this entry, I will explain what these behaviours are and how you can use them to your advantage!

1. Debt Reduction

Debt Reduction is the most important element of financial success. It's also one of the simplest, only requiring you to spend 5 minutes of your time per week while saving you over thousands of dollars in the long run. However, many people believe that they can't reduce their debt any faster than paying the minimum payment required.

Let’s say you have $3,000 in credit card debt and assume you only make the minimum payment. This may not seem much, but when you consider the fact that banks typically charge over 20% of your unpaid balance as additional interest, things can go out of hand very quickly.

Get started by taking control of your debts with our Debt Reduction Calculator. This organises your different debts and shows you the best order of repaying them (plus interest and time savings).

2. Money Flow

Effective wealth creation is achieved by mastering your Money Flow: the art and magic of "Money In and Money Out." When done correctly, this will leave you with a surplus of usable funds. To achieve this goal, understanding and controlling your Money Flow is key.

The Money Map organises your incomes and expenses so you can figure out how your money flows in and out of your bank accounts.

3. Risk Management

You've worked hard for your money, finished setting up your Debt Reduction Plan and got your Money Flow sorted. But, have you thought about what could happen to your partner, children, business, home, or lifestyle if you had an accident or illness that affected your ability to earn? Would your Money Flow plan still work if you removed your income?

Risk Management is the next key building block to your personal financial success and is something that should not be delayed. 'Life changing events’, or what I like to call a 'financial changing events', can and do happen at any time. You may have experienced this yourself or heard about such events from people you know. Risk management is all about being ready for those what if events should they occur.

The Financial Protection tool provides an easy way to assess the level of insurance you need to protect your finances, yourself, and your loved ones.

4. Your Ongoing Relationship with Money

The final building block to your financial success is your ongoing relationship with money. Now that you have set up the financial foundation blocks for success, you need to ensure that you continue to grow that success with good financial decision making.

About the author

Tracey Hunter is the Co-founder and CEO of Love My Money and a specialist in personal wealth creation. She is an engaging energetic business person widely experienced in aspects of the financial services industry. Tracey holds a Bachelor of Commerce, is a Registered Financial Adviser and a noted businesswoman and public speaker. Her passion is to help as many people as she can to 'love their finances and change their lives'