Chris Childs

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What can Star Wars teach you about wealth creation?

Seeing as the new Star Wars film is all anyone seems to want to talk about at the moment, we thought we'd jump on the bandwagon – in a manner of speaking. Wealth creation is something that everyone should have on their radar, and the right professional help can see you set your family up financially for life.

So, we're taking a focus on wealth creation with a Star Wars twist – what can the iconic film series teach you about increasing your wealth for the long term?

Debt reduction is key

Remember when Jabba the Hutt abducted Han Solo and encased him in carbonite as punishment for losing his spice supply? It's an extreme example of what can happen when debts get out of hand. According to the Australian Bureau of Statistics, there were more than 33,000 housing finance commitments in October 2015 alone. That's a lot of people entering debt as part of a wealth creation strategy!

Ready to learn some earthbound strategies from a space-based saga?Ready to learn some earthbound strategies from a space-based saga?

While you won't find Boba Fett hot on your heels if you mismanage this debt, it's vital to deal with it appropriately. The wealth coaching at Think Money can provide Jedi-like knowledge about reducing debt in a safe manner, letting you get on with your lifestyle.

Every padawan needs a master

You can't become a financial Jedi without the right training!

Obi-Wan Kenobi and Luke Skywalker. Emperor Palpatine and Anakin Skywalker. Yoda and…. everyone he talks to. The Star Wars universe is rife with coaching relationships, people helping people to realise their full potential.

It's a principle that relates to wealth creation as well. You can't become a financial Jedi without the right training! An ANZ survey of financial literacy in Australian adults from May 2015 found that only 20 per cent of respondents consulted a financial professional before making a decision. We think more people could benefit from our Yoda-like wealth coaching.

Keep it practical

One of the big talking points about the newest Stars Wars movie was that director J.J. Abrams was making a big push towards practical effects instead of digital ones, preferring the physical and real over CGI spaceships. 

It's something to think about with your wealth creation goals – sometimes investing in something tangible can be more rewarding than something in the digital ether. Warwick Temby, Queensland director for the Housing Industry Association has noted a strong increase in new home building for Queensland – maybe this is the sort of practical purchase you could make as part of an investment strategy. 

Change is going to come

There's a moment in The Phantom Menace where Anakin's mother gives him advice that every would-be wealth creator should take heed of:

"You can't stop change, any more than you can stop the suns from setting."

"You can't stop change, any more than you can stop the suns from setting."

In the context of wealth creation, this means that things will always change over the course of your strategy. Cash rates and interest rates will change, and property prices will fluctuate. For example, CoreLogic RP Data recently recorded the first monthly drop in dwelling values for Sydney and Melbourne in quite a long time.

Even though things change, there won't always be anything you can do about it. But with strong financial planning and a sound investment strategy, your wealth creation should be able to weather any such storm. 

You might not be able to use Jedi mind tricks to convince the market to work in your favour, but with the right wealth coaching you'll have a different kind of power – foresight. Creating wealth is something you need to do for the long term, not just for next week or year. At Think Money, we help people develop strategies for keeping themselves and their families financially safe for decades to come.

May the financial force be with you!