Wealth Creation: 10 Steps To Financial Freedom

From my research and study in the topic of building wealth, I have distilled all formulas and guidelines into 10 important principles. If you follow these simple principles and always think outside the box, you will be on the right path to achieve financial success and wealth that will last you a lifetime.

  1. CREATE & VISUALIZE YOUR GOALS: They will always lead to wealth creation. Set a particular goal and visualize it every day. In setting your goals, you should always be sure they are categorical, quantifiable, realizable, pragmatic and time bound.
  2. DO YOUR HOMEWORK: Never jump into any business venture, irrespective of how attractive it may look. This could set you up for failure and disappointment. The more interesting the business opportunity, the closer you ought to be in examining their claims on returns on investments.(ROI) As a budding entrepreneur it’s important to test each business opportunity before you invest a significant amount of time and/or money.
  3. IDENTIFY A PROBLEM & FIND A SOLUTION: This is the key to creating sales and cash flow for your business. Be determined enough to stick with it and don’t quit. Everyone is consistently attempting to find solutions to their problems. If you can offer them a quality product and an excellent value, then the world is your oyster. People are willing to open their wallets to those who can offer an easier and better life to them. One thing you must remember is that there are always problems waiting to be solved.
  4. THINK BIG & KICK ASS: The one thing that starts from the top and grows down is the grave. Otherwise, everything else in life starts small and grows up. When you grow up, you stay up, but when you jump up, you come down. Naturally, common-sense tells you that when you jump up, the force of gravity simply pulls you down. There’s such a lot to be learned at the start of your business. It will be small, but you will be dreaming big! So as you have a giant vision to grow, your business will grow too! Remember the proverb… “To Think Is To Create”Keep your vision, create a mission statement and share them with everyone you hire. With this you will all have a common goal to work toward each and every day.
  5. USE EARNED CAPITAL TO GROW YOUR BUSINESS: As you grow your business, remember to always use capital from your profits. Growing a business on borrowed capital is a very big risk indeed. You must be prepared to dance to the music when it starts to play. If you position the growth of your business, without acquiring debt, it will allow you to work harder and ensure you make the cash and merit the growth.
  6. CHOOSE THE RIGHT PEOPLE TO WORK WITH: You need to be careful in picking the people you’re going to work with in the business. If you truly want to grow your company, it is vitally important to choose people that are suited to the tasks that you assign to them. For example, you wouldn’t hire a heavy machine operator to run your sales department, right? A great deal of time and money could be lost by attempting to put a square peg in a round hole.
  7. USE FISCAL LEVERAGING: When your business starts to grow, it will be reflective of your business income. The entire essential nature of beginning a business is to develop a consistent, foreseeable source of cash flow above cost and expenses. The bank will lend your business money based on the amount of cash flow it produces each month or year. So make sure that you keep the cash flowing even during slow economic periods. This may take some “thinking outside the box”, but that is what being an entrepreneur is all about.
  8. THINK OUTSIDE THE BOX:There will always be competition in any market you choose to enter. It is important to brand your business so you stand out from the others. When branding your business be sure to always be thinking outside the box. Come up with ideas that haven’t been used before and you will surely get noticed.
  9. DON’T STOP LEARNING: Read, Read, Read… Always be learning about your product or niche, your target market, and how the economy may effect your business. It is important to always be attempting to stay one step ahead of your competition. Continuous learning will allow you the flexibility to make changes in the business when necessary to stay on the top of your game.
  10. LEARN FROM A MENTOR: It is much easier to achieve financial success by following in the footsteps of someone that has already been in your shoes and has reached the pinnacle that you envision for yourself. Find a mentor that you feel a connection with and has reached the level of success that you are striving for. Then listen to their every word. They will teach you the steps necessary to reach your financial goals and dreams. Remember that everyone that has reached financial success as an entrepreneur has followed in the footsteps of another.

Steps to Building a Strong Financial Foundation

Are you the master of your wealth? You should be!

In order to build a stable structure, you must begin with a heavy-duty financial foundation that will take care of you now while reinforcing your future goals. What do you need to do to put that structure in place? It is amazingly clear-cut. The tactics below will help to boost your monetary self-confidence and set yourself up for financial success.

Get Organized

Before you can proceed, you must be clear on where you stand financially right now. You can begin by developing a personal balance sheet. Make a list of each of your assets (what you own) and liabilities (what you owe). When you have gathered all your statistics this will give you a sense of your net worth.

Next, figure out your monthly cash flow and take a check of your credit. You can use a budgeting template like this one to help simplify the process.

Grow Your Net Worth

– Analyze your take home pay

– Make sure you are spending less than you earn. Keep track of your personal finances with a tool like Moneydesktop, which can empower you to take control of your finance and simplify your life.

– Manage your debt responsibly by making your payments on time and pay extra on all your consumer debt.

– Save money for your long-term goals. Open an employer sponsored 401(k) and make sure you take advantage of any employer matching programs.

Protect Yourself

Now that you are organized and following a growth plan you need to make sure you are financially safe. Try implementing these options.

– Build an emergency fund because life happens. It’s a must have to keep you financially viable – opposed to plunging into debt when you face an unexpected cost or other financial crisis.

– Check your insurance coverages. These types of policies will help to limit your out-of-pocket expenses when unexpected costs arise.

– Make sure you establish or update your estate plan. This may include updating your will, creating a living trust and instituting a power of attorney and a healthcare directive.

Prioritize Your Debt Reduction

Be conscious of over-extending by paying excessive interest on money you have borrowed. This can keep you from putting money toward your other financial goals. Debt repayment is a perfect way to start building your financial foundation. If you are interested in implementing a fast-tracked debt repayment strategy try the debt snowball method or another financial strategy to reduce your interest rates.

Define your financial goals

Now that you have put all the pieces together for your financial foundation it’s time to ask yourself what you want for both short and long term. Remember, your goals should be SMART: Specific, Measurable, Achievable, Realistic and Time-bound. Below are a few concepts to help you get started.

– Save for a down payment for a home

– Build retirement fund

– Save for children’s college

– Set up an emergency fund

– Save for bucket list vacations

– Become financially free

Now Let’s Make it Happen

– Be disciplined: Stick to the plan

– Maintain a balanced budget. You can’t be financially healthy if you are spending more than you earn.

– Automate your finances (regular money transfers from checking to savings, and online bill pay)

As you can see, constructing a financial foundation takes immense focus and determination. If you follow your step-by-step process you can’t help but see results. Most importantly you will begin to gain confidence in your capacity to create and stick to your new healthy financial life.

3 Ways a Teenage Can Acquire Wealth and Maintain Financial Sustainability

A man’s success can be recognized by the legitimate means in which he gains beneficial things. This might be as result of effort and self-determination. To some people, it is otherwise because they believe success comes from the approval of the Supreme Being. Wealth sometimes can be described simply as the ability for an individual to meet up with his/her desires without limitations.

Millions of people living in the world today believe in having hands on deck to achieve their goals and what matters is, do they really work for the sustainable goal?

Perhaps, about 5% of the people in this world acquire wealth to sustain and provide their demands at any given time. They are known to be the world’s most influential people. Their achievements might not really depend on the hardship but simply as a result of self-determination to produce services for the general population to utilize.

In this article, we provide three (3) ways to acquire sustainable wealth to suit people’s prospective desires. However these ways are categorized amongst three groups namely the inventors, investors and salary earning groups.

The Inventors group: This group can be found amongst popular artistes such as art celebrities, actors, musicians and inventors. They normally work for the passion which at later time, projects them to fame that attracts wealth for them. Sometimes, their wealth is not substantial because of improper management. Reason is because majority of people in this group are teenagers who doesn’t believe in seeking for job. They find it easy to go for their passion but lack of knowledge in the managerial aspect would eventually lead them to financial instability.

The Salary Earning Group: This people work for an agreed terms and period for their employers. When they meet their job requirements, they get paid for the specific job. Either as a government or a private sector worker, they are dependent on their monthly, weekly or daily salary which often limits them to their desire.

A teenage in this group sometimes find it difficult to meet up with their hastening needs as they end up seeking for leverages, loans and mortgages which results to debt. At most point they are caged for a fixed period in other to achieve their long term desires. Only 30% of people in this group step up to build other sources of income for themselves.

The Investors group: This set of people believes that every day to day activities of the world depends on business transactions and risks.

However not many of them succeeds in this path. Only few who believe that risk is a companion in every business dealings scale along through.

This group of people invests at a minimal rate and gradually attains a higher level of wealth. They focus on the long term goal which produces huge and sustainable wealth than other groups above. They are the owners and employers of people who make wealth for them on daily basis.

Attaining wealth depends on the variety of group you choose to belong. Any one of these groups can eventually land you to wealth but it takes wisdom and understanding to manage its proceedings in other to sustain it for the future.