10 Secrets to Achieve Financial Success: Analysis

Whilst travelling this week, I watched a documentary following the day to day life of former Goldman Sachs trader and now Managing Partner of The Institute of Trading, Anton Kriel.

The feature length film, available on YouTube below, allows the viewer inside access to the life of an immensely successful individual in terms of both his personal finances, and his business enterprise. The film crew travel with Anton from his home in Singapore, to London via New York and accompany him on his seminars, whilst he is actively working on trades and on a number of social occasions.

The key content of the documentary however, revolves around 10 'secrets' that will ultimately bring an individual financial success:

1) Respect money and be indifferent towards it.
Here, Anton describes the difference between "good and bad greed." It's OK to want more for yourself and family, but when you start to negatively affect others for your own self gain, this becomes the problem. He goes on to mention that a $20 bill, no matter what you think of it, thinks absolutely nothing of you, so to have emotional attachment to something that cannot feel the same is ludicrous. The respect of money, comes from a concept know as "The Double Coincidence of Wants." See below. 
https://www.youtube.com/watch?v=YUn08lQ4oqg

2) Rent to own - Define Assets and Liabilities Properly.
Always buy for cash when and where you can. Furthermore, short term renting can be seen as a better option sometimes as you're not tied to a particular location. If you are looking for a mortgage however, deVere Mortgages can and will assist you in the UK or abroad. www.devere-mortgages.co.uk

3) Build and own your own infrastructure.
SAVE! The message Anton portrays here is simply to make sure you are self reliant and sufficient with your finances. He mentions that you shouldn't sign up for liabilities based on your current salary as this can change throughout your life, and that you should always be looking to save more. 
Interestingly, Anton states that the UK pension system has failed, and will go into meltdown with people living longer. He advises that you in-source your own pension, don't rely on a third party and get it back under your own control.

This of course is something I advise all my clients on here in Italy with UK pensions. See below: www.devere-italia.it/retirement-planning

4) Go travelling, Get perspective, live your dream life
"How do you truly know what you want from life, if you don't have all the information?" This spoke very true for me, as living abroad for over half a decade has brought clarity to new cultures, ways of conducting business and understanding the need for good financial planning based on location.

5) Know that risk is subjective, not 2 dimensional
This is simply understanding what 'risk' is for you personally. When you think about your job, your family and where you live, what liabilities do you have? Mostly, people will find that they have liabilities they didn't even consider to be such. People may believe that they have a diverse portfolio in terms of asset allocation, but good financial advisers should always advise the client to diversify their portfolio based on their attitude towards risk too.

6) Seek out alternative education
Teachers will champion the traditional methods of learning, which could actually be perceived as the opposite to what you need to do in order to become successful. I believe this also applies to good financial planning. Sticking with what you know (Your local bank) may not be what is best for you as they will only sell you their own products. Alternative Independent advise is crucial, as looking at the whole of market will ultimately give you the best solution. 

7) Learn to value your time properly
"The most important card is the one you put in the ATM. Put your bank card in the ATM and the number staring back at you tells you if what you're doing is right or wrong." Making sure you are taking advantage of the current market is crucial. I see all too many people with a "wait and see" attitude, and then instances such as Brexit occur, causing the pound to crash which erodes their savings and pensions. ACT, NOW!

8) Ditch the smart phone
Hmmmmm...This is one Anton and I may have to disagree on for now. I personally find the ease of WhatsApp, in communicating with my assistant when out on meetings invaluable. Anton asks "How much an hour do you value yourself at? If $1000 an hour, and you spend an hour a day on your smartphone, you lose $365k a year." I appreciate the point, but many can only dream to value their time that highly. I'd like to help my clients get close, and right now I need to know I can effectively communicate with them where ever they are (May give it a go in the future!)

9) mainstream media is useless, don't consume it.
Keeping up with current affairs is important, but how you consume this information is crucial to the direction you want your life to go in. "Only consume what adds value to your life, and assists you in where you want to go." 

10) Choose mentors that suit your objective
"Celebrity idols, glorified by the media are basically jesters or clowns we pay for entertainment. DO NOT idolize them." Here, Anton finally mentions that you should pick a mentor, who has a proven long lasting track record in the area you want to be successful in. If finance, choose to work with an adviser who is qualified, locally regulated and can provide quality references from existing clients.

The documentary is very informative if you really want to take control of your finances, better still you can contact deVere Italia today for information and advise on how we can really help you achieve financial success.