The most famous of all investors, Warren Buffett once said, “People seeking riches never have enough. Wealth is a state of mind. Wealthy people always have enough.” To him, riches are a monetary amount and never satisfy you. On the other hand, wealth is a journey and a set of actions that lead to a more fulfilled life.


So, as we try to apply this to our own finances, we’ve identified a set of principles of actions for you to consider, to help you build wealth in a fulfilling way, as opposed to just seeking to grow your bank balance.



Have a “Why”

Start by identifying and being able to articulate why you want to grow your wealth. Is it because you want the security and comfort of being debt free by the age of 50, or maybe you want a certain lifestyle in retirement – being able to live in a warmer climate for 3-4 months of the year? These are real life goals, as opposed to a meaningless number of Euros in your bank account…



Know how much is Enough

Some people end up living fairly unfilled lives, judging their success or otherwise by comparing their riches to their siblings / friends / anyone, or by aiming for a random bank balance. And what happens when they achieve that figure? They get back on the treadmill and seek a higher number, dissatisfied unless they achieve that.


On the other hand, some other people decide on their goals in life, and with the help of a financial planner, thy identify how much they need to fulfil those goals. And when they achieve them, they enjoy them, living the life they want in a fulfilled and satisfied state of mind.



Pay yourself first

You’ve likely heard us talk about this one before! That’s because we believe it is the key to successful saving. Let’s assume you’re paid on the first day of each month. Lots of people pay their bills, live their life, and look to save whatever is left over at the end of them month. And yes, they usually get to the end of the month with a zero bank balance, as their lifestyle consumed the available cash.


On the other hand, astute savers identify their target saving amount and have this set up to automatically transfer to another account on the second day of the month. And they then live their life in line with the available funds in their current account. Of course, from time to time, they may have insufficient funds to see them through the month, and need to dip into their savings. But at least now, they have savings to dip into…



Recognise there’s no short cut to being wealthy

Building wealth is a long-term pursuit, achieved by lots of wise actions practiced over many years. The greatest destroyer of wealth is our own behaviours, that typically are the result of having short-term blinkers on. Acting on a hot stock tip or having a hunch that markets are at the top or the bottom, and selling or buying on this basis are usually routes to wealth destruction.


Instead, wealth creation will happen by consistently investing, and then letting time and compound interest get to work without meddling in the process.



Listen wisely… and with scepticism

Surround yourself with the right people. First of all, avoid being swayed by the latest ramblings of some so-called financial expert who is giving you a sure-fire way to investment success. It doesn’t exist… because if it did, he/she would keep it to themselves!


Likewise, be careful of listening to family or friends who come from the YOLO school of thinking – You Only Live Once! These people live life by the seat of their pants, and while they may enjoy some fun in the short-term, this usually turns out to be an uncomfortable place to be in the long-term.


Instead that friend who mentioned saving money in their teens and pensions in their 20’s is not boring! They have probably turned out be the wealthy people, living a financially stress-free life and having clarity about the life they want to lead… as they are on course to achieve it.


Our overriding advice? Think what wealth is to you – what does it mean in terms of the life that you will live. And then aim to achieve that, as opposed to a meaningless bank balance.