3 Effective Steps to Financial Success
Financial success is not restricted to a few elite individuals. Look at the lives of many wealthy people: Richard Brandson, Warren Buffet, Robert Kiyosaki or Donald Trump. They achieved financial success not because they are extraordinarily gifted, but because they constantly apply the key wealth creation principles and practice to their lives. The truth is, they were not born affluent, they worked into becoming affluent. You too can only if you know what to do, how to do it, how often you need to do it. In this post, you would find out 3 ‘its’ that you need to constantly work on.
Please note, you cannot expect life to reward you with riches if you are not prepared to do anything about it. You get what you give. You sow what you reap. You cannot fold your hands and expect to handle anything with the same hands. You need to get to work and after some years, you will start to see the result. Financial success takes years of experience, this is why you need to be disciplined, dedicated and patient.
It’s not enough to be a hard worker full of determination, you need right information and a right actionable plan. Nothing changes life like a right information and right planning. Do you have a plan that is geared for success? Do you need to succeed financially? Then you need to follow the 3 effective wealth creation steps below.
Step 1: Have Clear Financial Goals
A clearly defined financial goal reads something like this: ‘In 5 years time, I will have $10,000 in passive income per month to support my desired standard of living.’ How do you see your financial success? You must be able to define how you want to live your life and how much passive income you require. This is because, financial success is measured in passive income. How much passive income you make depends on how financially successful you are.
Step 2: Prepare Yourself
What is the state of your current financial position? If you cannot face up to the brutal facts today, forget about financial freedom. You should be ready to experience massive personal growth through experience, failure, reading, studying and networking. You must grow in personal capacity before your financial capacity can grow. You wouldn’t be able to handle what your mind cannot conceive or handle.
Financial success requires a clearly defined business strategy, not an investment plan. In most cases, an investment plan dictates that you place your cash in a diversified portfolio of assets over the long term. In the words of one of the greatest investors, Warren Buffet, ‘Diversification is required when investors do not understand what they are doing’. A business strategy on the other hand is a focused income creation plan. It focuses on identifying market needs and how one can satisfy those needs with different products and services. The greater the need the greater your financial success.
Step 3: Start a Business Systems or Join a growing Business Network
Once you have adequately prepared yourself, you need to put systems (networks and teams) in place to do all the hard work for you. The wealth builds systems (networks and teams) or they leverage on systems while the poor work hard for systems. Where do you belong to? If you want to get wealthy, you need to build a business system (networks and teams) or become part of a growing business system (networks and teams).
For example, suppose you are a mechanic and have expertise in vehicle maintenance. You could sell a ‘Do it yourself car maintenance’ manual using the internet and have a bunch of web pages do the selling and sales administration on your behalf. Property is another example. Most people treat property as an investment. This is a huge mistake. Property is a business and you need to treat it as such. It’s not about selling property for a profit it’s about using your team of professionals to milk property for its rental income.
You can either turn what you know into a business system (networks and teams) or join a growing business system and have access to leverage from the network and teams. You might do it alone if you start and run a business system alone. You can also use the help of people in a business network I belong to. There is so much to do. Take one step at a time. Decide what you want out of life. Sort out your current finances and compile your financial plan. Financial success follows careful planning.