THE RICH HAVE MONEY The distance between success and failure is connected by a bridge called KNOWLEDGE and to take a walk on that bridge causes a transition from failure to success.Many people know about this bridge but only a few have taken the walk. What is the difference between the two? GUTS!!!! It takes GUTS to take on a different adventure. You should aim at learning how to use your money to your adavantage and become money attractive rather than money repellant.You should have a WEALTH GOAL which is Financial Independence, the freedom that comes from no longer having to worry about money. Creating multiple streams of income that flow to you One secret to becoming wealthy is the ability to start thinking like a wealthy person, and training your mind to change some old money habits and embracing new ones. Trying to have money without good money habits is like trying to fill a sink with a huge hole at the bottom- no matter how much water you tip in, It’ll will leak out The following are the WEALTH BUILDING PRINCIPLES you must abide by in order to transition from Riches to Wealth NO 1. THE NEED TO PUT OFF MARRIAGE. The biggest obstacle to acquiring wealth is you. Marriage is one of the most important financial decisions you will have to make-who you marry and when you marry. Marrying early can save a decade worth of frustration Your 1st goal should be to become financially independent and have your investments in place with little or no debts. NO 2. If you don’t like what your parents were at your age, then do things differently from what they did, otherwise you end up as they were. First sign of insanity is to do same thing over and over again and expect a different result NO 3. When you begin a job, look at the pay of the highest employee, look at what the top dog gets and have an idea of how high you can go. For example if the CEO makes N900,000 per annum, you stand no chance of making six figures. Select a job accordingly. NO 4. DO SOMETHING YOU LOVE AND GET PAID FOR IT. There’s no honor in being a doctor or a lawyer if you wake up every morning hating your job. Pick a profession you love. NO 5. YOUR NEW COMMODITY IS NOT YOUR LABOUR. IT’S YOUR IDEAS. The only limit you have on yourself now is your imagination. Your ideas are the most valuable things you possess. Every man, woman and child is a SALESMAN for a living. NO 6. Capital is literally a seed. Learn how to plant it and produce a fruit. When you do this, you’ll rule your finances, not the other way round. In as much as these rules exist, when it concerns money, there are some mistake you have to avoid. Being able to recognize and then eliminate these mistakes is a vital step to your financial freedom. 1) SPENDING ON IMPULSE This refers to things that you buy which are not planned for [window shopping] and you seldom need. Plan your purchase before you go shopping. Come with just enough money for the things you want. 2) HAVING NO SAVING PLAN All the financially challenged often make this common mistake. Most young people give excuses of being young. SAVING IS A HABIT. Develop the habit of paying yourself first e.g. 10% of your pay. Saving has a cumulative effect- the earlier the better. Be patient and enjoy later (increase the % gradually). 3) NOT TRACKING YOUR FINANCES If you’re not even aware of where and how you spent your money, forget financial independence. Start keeping track of your spending. Always keep receipts and bills. Analyze your spending to find out how much you spent on the things you bought. Once you know where your money goes to, start cutting the expenses from there. 4) SPENDING ‘WIND FALLS’ OR MONEY SAVED Windfall include pay rise, bonus, any form of increase. This extra money can be put to better use. When you have a windfall, spend part only and save the rest [75% of it]. Suggestions:- A. Pay your debts B. Build your emergency fund or C. Invest your money. 5) NOT INVESTING AT ALL If you really want to be rich, you have to learn to invest for a higher return on your money. Don’t just keep cash in savings. Set aside enough money of about 3-6 months of your saving and invest the rest. 6) NOT BUYING AN INSURANCE Life is unpredictable. Approach an Insurance company and INSURE!!!! 7) NOT SPENDING WITHIN YOUR MEANS Spend less than you earn. STEADY PLANS- Clear your debt - Buy insurance - Put away emergency fun - Save for retirement IF YOU WANT TO BE WEALTHIER, WORK SMARTER NOT HARDER.
Posted on: Tue, 10 Sep 2013 09:27:31 +0000