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You can retire earlier and be better than you think if you make the right choices today.

The vast majority of Australians are far from prepared for retirement. Most are so far behind that the chances of catching up by conventional means are low. This is only compounded by the choices they continue to make on a daily basis. So, if you are not yet one of the top 1 percent on track to retire with confidence and with a high quality of life, what can you do to change things for the better?

Spend Smart

Despite living in one of the wealthiest countries ever, Australians are in poor financial shape and live in anguish because they have simply allowed themselves to become nothing more than consumers. TV evolved into “smart” phones, and now we are on the verge of seeing all our “smart” homes installed with devices that feed us constant shopping suggestions or even shop for us.

One way to change this dynamic is to question and evaluate every dollar we spend and borrow. Ask whether your purchase is really taking you closer to your real goals. If not, it is taking you further from them. Perhaps we could be spending less on depreciating items and invest in cash-producing things instead.

Start Investing ASAP.

By investing in income-producing assets first, we are able to change this dynamic. We can multiply our income, and we can earn while we sleep, eat, spend time with family, or work 9-5 jobs. That surplus can be used to cover expenses, reinvest, or grow a nest egg for retirement and beyond.

Of course, what we invest in matters. Stocks have surged to new highs, but few believe this run will last. I prefer investing in real estate for a variety of reasons. It offers passive income and a hedge against inflation. It’s also a tangible asset that won’t be vaporized by emotional trading, and it can simultaneously build wealth and cash flow.

Not everyone has the cash or credit to go out and buy a bunch of rental houses, though you can partner up with others. If you can combine your capital with others, you can invest passively now. If you do not have any capital, partner with someone who does, and use your time as a resource and invest actively.