Breaking a Law to Bring Financial Independence

Break the Law!

Parkinson’s Law is the adage that “work expands so as to fill the time for its completion”.

How can this concept have such a profound impact on all of us financially?

The answer lies in a rework of this adage that “expenses expand so as to fill the income we generate”.  I’m sure we have all been guilty of this. As our income increases so too does our expenditure. The more money we make, the more perceived complexity enters our lives. Along with that follows an expanding list of financial commitments, putting pressure on our ability to save. There never seems to be enough.

The key to building financial security lies in our ability to create liquidity. This liquidity is like oxygen to our financial position. Therefore, financial independence comes from consistently breaking Parkinson’s Law.

If you can allow your expenses to increase at a slower rate than your income, then invest the difference, wealth generation will follow.

Let the expenses do the work. The incentives are big as we get a dollar-for-dollar return on each dollar saved, compared with losing as much as 49% in tax on each additional dollar of assessable income you work so hard to earn.

Discussed in an earlier post, analysing your expenditure to determine what is essential and what isn’t, what makes you happy and what doesn’t, is a great starting point.

As you work through your expenditure, it is important to be objective and identify any emotional connection you have with money, because spending is an emotional response and normally not a function of logic.

..then make the right decisions with that excess

There is a Japanese proverb that says “getting money is like digging with a needle, spending it is like water soaking into sand”.

For some, it’s easier to just spend money now, avoiding the duty to sit down and actually work out how it can be best invested to build future income streams.

We live in a culture fuelled by a tendency to spend first then save whatever is left over. The simplest key to success is flipping this approach on its head. We should all save first, then spend what is left over. The beauty of doing this is you remove the guilt from spending. A healthier and more sustainable relationship with money will ensue.

With so much political, social and economic uncertainty surrounding us, making smart decisions has never been so important. Now is the time to seek advice to steer clear of the unnecessary risks, because unfortunately these volatile times are here to stay. Opportunities for returns are all around. You just need to know where to look.

Contact Satori Advisory today on 1300 925 081 to discuss your situation and how we can help.


CXC Financial Partners completed an exciting rebrand and name change to

Welcome to the brand new website.

Our new branding is built around the concept of Wealth Enlightenment.

Enlightenment by transforming complexity to simplicity; and simplicity to meaningful action.