Building a long lasting income is not just staying on an old platform, doing the same thing you've being doing for ages, yet expecting new results. It is the extra effort you venture into by trying to create more wealth which will ultimately give you total financial freedom. Financial freedom is the process of having enough assets and less liabilities that generates capital gains, income, and dividends without your labour.
For financially independent people, their assets generate income that is greater than their expenses. Before your wealth can actually speak for you in public, then you must know my basic wealth secrets. This article will lead you to knowing how to have more wealth.
Understand That Income Is Not Wealth
Maybe you are CEO/MD of any big organization, or perhaps you are the financial controller in your conglomerate and the chief accounting officer in your organization. All these can not give you financial freedom. The amount of money you earn cannot determine whether your purse will be fat or not. It is the extra time taken to carefully plan on how to spend your income on a monthly basis, as an employee or employer.
You need to ask yourself, if you had to stop working right now, how long could you keep up your purchasing pattern for cars, clothing, music lessons, college tuition, video games, etc.? The average person isn't educated in this truth, which is why they are left wondering why financial independence and security continue to allude them, always seemingly just out of grasp.
Set A Financial Goal
The road to wealth is paved with goals. If you don’t know why you’re doing this — why you’re making sacrifices, why you’re working so hard — it’s too easy to fail. But if you set goals, they can help guide you even when things get tough. When you have to make decisions, your goals can help you stay focused on what is important.
For you to achieve your financial goals, you must take it personal. They have to mean something to you. Right now, one of my goals is to save money for a professional exam. A couple of years ago, my goal was to save for a Mini laptop. Before that, my goal was to get rid of a bad debt.
You must Invest More
Investment is one of the keys to financial freedom. Probably, you've invested before in a particular venture and now you are feeling relaxed -feeling on top of the world. But I must tell you that is not the end of it all. You look for other good businesses you can invest in. Great businesses are around you, the only issue is to see the opportunities that revolves around that venture by investing in them. Don't ever be satisfied with only one business. You must dream big: But let your dream be reasonable, concrete and achievable.
Save More Money
Savings is one of the best tested way of creating an unending wealth. Have you seen people with dreams and aspirations, willing to explore in business and go as high as they could reach? Then you need to be prudent in your spending and save more. Saving is a habit a true dreamer, who has got the right thinking must cultivate.
Only few but wise People have plans for saving their money after tax- family monthly expenses, transportation, personal projects etc. Even if they do not really know why they are saving it for the time being, but they know in few years, they will definitely decide on what investment to put their saved capital. Never touch it until you retire! This 10% is over-and-above whatever you are putting away for tuition, a wedding, a new boat etc.
Diversify Your Portfolio
Diversifying your portfolio gives you more business leverage over your competitors. While your competitors are still trying to create new strategies to increase their profit, you quickly think of new ideas that struck your mind, probably, you can take up a franchise business that can fetch you more income. There are so many businesses out there that can make you rich. New business can make you earn extra income and eventually make you rich if you wisely choose the right venture and manage it well.
You should also try to invest in mutual funds, stocks, bonds, precious metals, currency. Diversify your account managers as well. Never allow one account manager to invest more than 10% of your total portfolio. This is another vital key to true financial breakthrough.
Make Sure You Have Enough Fund To Invest
I made mention of savings in my previous sub topic, hence, you must make sure you have enough fund in your investment account before you can think of having a true financial freedom. When you have a robust account, businesses will look for you wherever you are. You wont need to struggle, investment will locate you.
Cut your expenses, generate extra income, and put the money into brokerage and tax-deferred retirement accounts. With time, it begins to amount to something. As each new opportunity appears, you can react on a larger scale than your previous investments.
Reduce Your Daily Expenses
''Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.'' - James W. Frick.
Your daily expenses need to be cut short if you must enjoy financial freedom. The way you spend money will definitely affect your fat or lean purse. If you desire to build a wealthy life style for yourself, try and cut such expenses like, clothing, cinema, family picnic, luxury autos, luxury family time outs etc. This is very important in helping you to achieve and evaluate what your financial worth could be, if you are principled.
Your Certificate Does Not Matter
You do not need to depend too much on your certificate. What matters is the inner ability/drive that pushes you to unleash the wealthy treasures in life. Don't make a mistake, your financial intelligence though might be derived from formal education, but it is not the yardstick to attaining a total financial freedom in life. Your brain must always be at work, which is the central part of your financial intellect. Be money wise and educate yourself by reading financial books and journals.
Don't Stop Learning
''Formal education will make you a living; self-education will make you a fortune.''
Jim Rohn.
After your formal education, you need more education in order for you to be ahead of your financial game. Your road to financial stardom needs more questions and answers, examinations, tests, and investing in yourself. Remember, no one can achieve more than he knows. Your level of knowledge may determine your limit in life. so, go to seminars, conferences on financial intelligence. Gain power through knowledge.
Create The Habit Of Giving
Helping others is more closely related to giving back to God. The more you give, the more you will receive. After you have done all of the above and there seem to be no way, you have to create this habit. This habit can either be inherited or developed, so in case you think you don't have it, develop it. "Givers never lack".
This is the most trusted way of making money even if you are not religious at all. Bill gate is not likely a religious man, but he has a foundation that give back to the society. He gives a lot of his wealth to the society and yet, he's one the wealthiest men in the world as of today. Why, because he studies his society and thought that he can't live in more than one house and drive more than a car at a glance. So, instead of wasting it on other things, he keeps investing on people ( both known and unknown).
''I Don’t pay good wages because I have a lot of money; I have a lot of money because I pay good wages.''
Robert Bosch.
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