Entering Financial Freedom

Posted on August 31, 2011
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6 STEPS INTO ENTERING FINANCIAL FREEDOM

1. INCREASE YOUR INCOME

Financial Design

HOW DO YOU INCREASE YOUR INCOME? YOU MUST DEFINE A CLEAR CUT FINANCIAL GOAL

You must ask yourself the following questions: How much do you want to make? How much are you earning now and when would you like to make the amount you determine to make?

Your goal must be specific. If you earn 50,000usd now and you want to earn 100,000usd, it means your income would increase by 50,000usd, when would you like to start earning it?

Give it a deadline, you can say in exactly 6months or 1 year from now I want my monthly income to be 100,000usd

There are People who are already earning what your target is, all you need to do is to just obey the principles of goal settings

Some of these principles include:

A. Goals must be specific i.e. concrete, it shouldn’t change every day

B. Goals must be achievable i.e. if you know it is unrealistic, you have failed already

C. Goals must be believable i.e. if your goals create huge doubts you will never achieve it, that’s why you must take it in steps

Learn to plan for the year, develop a habit to always set targets. After you specify your goals, you must ask HOW?

I.e. how will you achieve that amount of money? This takes us to step number 2

2. GET A JOB

If you are not working or earning any income, get a job or get another job or create a job. The economies are not stable but you must run against the culture if you want to rise. Most times when we say get a job it makes some people feel you are at the mercy of the person giving you the job but honestly it ought not to be so, you must place value on yourself. Incorporate yourself; see yourself as the CEO of YOU incorporated offering your service to xyz Ltd at an agreed price, paid monthly for offering so and so services. It’s a contract. You are a wealthy person adding value to an organization, you are not a liability. The same way an employer has the right to choose employees so do employees have the right to choose their employers. Don’t just take any job. The greatest reward you get for working is not the paycheck you get at the end of the month; it is the person you become at doing that job. If a job cannot mould you to fit your vision then don’t take it. The core thing in getting a job is adding value and solving problems, money is the exchange of value. Remove your mind from the amount and see how much value you give in exchange, to increase your income, increase the value you give in exchange. If you are not been paid for adding value give value for free, it’s only a matter of time. Investment is the key to achievement, output answers to input.

3. DEVELOP EXPERTISE

In your line of profession people earn money at different levels, shoot for the highest level.

Focus on the kind of value they are adding and the kind of problems they are solving and develop yourself to have the competence of solving such problems at their level. If you an expert in your field you will stand before great people, there are drivers and there are drivers, there cooks and there are cooks, there are mechanics and there are mechanics. Don’t focus on what you can get but how much value you can add, people would appreciate the amount they pay you after they see the amount of value you can give.

Be good at what you do, develop additional skills. Read books, learn and be an expert. The author of the book called the outliers, advised that you should try to invest at least 10,000 hours to be an expert in whatever you do. Learn to be passionate about what you do, if you don’t enjoy what you do, you might never be an expert in it. Passion is the fuel that takes you to the location called expert.

Do your works with excellence, treat people well, treat them like kings, go an extra mile; exceed people’s expectations that will keep them coming back. The most powerful type of advertising is word of mouth. 1 unhappy customer will tell 25people, 1 happy customer will tell 4 people.

4. SAVE FOR EMERGENCIES

Saving is a basic principle of the farm. What you sow is what you reap, in terms of quantity or quality

Principles don’t change. Take some from your last harvest and plant. You must develop the habit of not spending everything. To break free from poverty you must save. Poverty will make you eat your whole harvest. Experts say you should save at least 10% of your income, no matter how little, save something. Keep something back. Save up 2 to 6months of your monthly expenses, emergency funds. Emergency situations are things that put most of us in big trouble, estimate your monthly expenses and save at least 2 to 6months. The money you earn might not be enough but you just have to save. When you run out of money in your pocket, and you remember the money you have saved up, it makes you happy and you attract riches.

You have the ability to attract wealth through you thinking, what you focus on has a way of focusing on you

As you save your money: let it earn interest, fixed deposit, savings, invest etc. let it be easily accessible, not in shares and things you can’t easily access. Limit your exposure to things you don’t need. Most people end up buying thing they don’t need, if you continue in this path, poverty is not far from you. Develop contentment, don’t be materialistic, you are not what you drive or what you have. Enjoy material things but don’t kill yourself over them. Some people buy cars that drive them, they can’t even afford to fuel the car, they try to impress people. Buy a car that you can afford. Don’t borrow to buy a liability. There are so many things we kill ourselves over that are not important. In Europe when you drive a car out of the car lot, the car loses 30% o its value.

5. PAY YOUR CONSUMER DEBT

There are two types of borrowing, you can either Borrow to consume or Borrow to invest. If you borrow to consume you are spending your future upfront. When you borrow you become a servant to the lender

It’s easier to borrow but paying back sometimes, brings fear; anxiety, torture etc. don’t make it a habit to be borrowing from people. If you are in debt for borrowing for consumer things, try to pay it off

Start with the debt that has the highest interest. Stop running away from the people you owe. Ha. e a plan to payback, weekly, monthly etc. live in integrity.

6. SAVE FOR MAJOR PURCHASES AND FOR INVESTMENT

The ants gather in the summer for the winter. Your Starting point is to review your life goals and purpose. Take the long view. If you have not set goals for 3 to 5 years you will eat your seed money without knowing

Be aggressive in your savings. Your plans and future directs your finances

Peg your expenses even when your income increases. Expenses will always rise to meet income. As your income increases save more

Most people who earn a lot of salaries get broke before the month ends because they don’t save.

In conclusion

Save for your Children’s education. Save for building or buying an asset e.g. home. Save towards starting a business It’s important to save money that would carry you at least for the first year of business.

Save for retirement; get to the point when returns from investment can take care of your bills.

Be consistent in your savings; don’t save today and tomorrow give an excuse.

Start now, if you cannot save when you earn little how would you save when you earn more?

Saving gives you leverage. When you can easily access cash, you will be able to overcome major problems.

It takes a lot of discipline to save. Seeing the money and not touching it, takes extra ability, you must learn to be disciplined in your savings. If you apply these principles in your life, your life would receive a boost.

GOD BLESS

Entering Financial Freedom

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