In front of you stretches a road leading into your future. On that road are heights you wish to reach… great dreams you wish to fulfil. To truly fulfil these desires, you must be triumphant with money. Money makes it possible for one to enjoy all the great things that one desires in this life. Apply the principles made clear in the article that follows. Let it be your guide from a life of lack to one that is fulfilling.. ...
The principles
The principles of wealth are simple, universal and never changing. May they become to you, as they have been to many others who have walked this road before you, the door to prosperity. Just remember that it doesn’t matter where you are now, after all, the habit of managing money is more important than the amount.
The goal of this article is to get you to a point where you attain financial freedom. This is a point where your passive income exceeds your expenses. It means that you don’t have to work for money, money works for you. Your best bet for financial freedom is by creating a stream of incomes both from business and investments. All you need is what you have now and the following rules to get you to the wealth you desire.
Rule no. 1
The first rule is keeping your money in different accounts. The different accounts are laid down in the rules that follow. Financially speaking, poor and middle class people believe the primary reason to work is to earn money to pay for their current lifestyle. Rich people believe the primary reason to work is to earn money to invest and to create passive income structures so they can win the money game and become financially free. For starters, you will need six accounts. You can put your pay cheque in one clearing account and make transfers to the respective accounts. The six accounts are;
• Investment account
• Essentials account
• Self development account
• Fun account
• Give account
• Savings account
Rule no. 2
For every one hundred you earn put aside ten to be used for investment. Make a deposit on this account first. This will be the goose that lays you the golden eggs. You never eat the goose that lays the golden eggs; you only eat the golden eggs. I repeat, do not spend this money, you only invest it. The 10% should go to the Investment account and should only be used wisely in profitable investments. You should never spend this amount. It is also important you open a different account for this saving to make sure you don’t spend it. The profitable investment should be one that you have done your research on. Be it the stock market, real estate, a shop ... whichever the investment. Make sure you have secured your investment from unnecessary risks. This is where mentors come in. Identify a financial advisor in the area you wish to invest in .Invest some time every day to learn about investments and managing money. Make sure you are familiar in the area you wish to invest in. Before you invest make sure you clearly understand the strengths, weaknesses, opportunities and threats of your investment. Don’t be in a hurry to get rich.
Rule no. 3
Assign 50% or less to go to your essentials (basic needs). This is where rent, food, transport etc should come in. If you spend more than 50% on your essentials account, you are living beyond your means. Simplify. Move to a cheaper house, live near where you work. If that is not an option for you then find more ways to make money. Do whatever you can to make sure your essentials account does not exceed 50%. If you can live on less than 50%, that is even better because it means that you will have more money to invest. The balance on this account should not be carried forward to the next month but rather put it on the investment account. This may seem difficult at first but think of all the wealth you are going to accumulate. Wealthy people don’t just want to be rich; they are committed to being rich. After all, what you focus on grows.
Rule No. 4
Allocate 10% to go to the self development account. You can use this account to go back to school, buy books to help you learn about investment, wealth creation or use it to attend seminars that improve you as a person. You don’t have to spend the whole amount every month. You can accumulate it to spend it on school fees. Commit at least half an hour every day to learning about investment opportunities in your area. The internet is a great place to start. Work on your mind, get into the habit of reading, you could go to the library, download books from the internet, read motivational books, fictions, non-fictions get into the habit of reading.
Rule No. 5
Assign 10% to go to your fun account. You have worked very hard the whole month you deserve to enjoy the money you have struggled to earn. You can accumulate it and take a vacation quarterly or spend it monthly on things that you love. Do not spend this money on essentials, it’s meant for fun activities. For a long time you have cared about your parents, your spouse, your children your colleagues, it’s time to take care of you, it’s time to make yourself smile and this account will help you do that
Rule No. 6
Assign 10% to your give account. If you are a Christian, you can give it as tithe. If you wish to give more, remember the only account you can touch is your essentials account and not any of the other four. Don’t take this account lightly. The quality of your life ultimately comes down to the quality of your contribution to others. To cultivate the sacredness of each day, live to give. By elevating the lives of others, your life reaches its highest magnitude. Practice daily acts of kindness. Give to those who ask. Cultivate richer relationships. Stop seeing yourself purely as an individual and start seeing yourself as part of the collective. Take time to meditate every morning on the good you will do for others during your day and this account will enable you to do just that.
Rule No. 7
Assign 10% to your saving account. You can use this account to purchase assets that your house needs in future, it can be used for emergency. You can accumulate it for many years so that you can use it to buy a home, land. This account is basically for long time spending.
Rule No. 8
Take a step NOW. How many times have you said to yourself...."How am I going to do this?"
This is a persistent question to all of us. Where have you gotten stuck in your thinking
and by buying into your being stuck, you have let opportunity pass you by because of some fear about not knowing enough, being enough, didn't know where to begin, weren't quite ready, and on and on. The only way to you can have the life you have always desired is taking a step now .If you wait for perfect conditions, you will never get any work done. Take the first step towards it whether you know the final answers or not.
Action will create momentum and momentum will create an ability to forge through any adversity you perceive is in your way. I have given you the means; now find your way to financial freedom and wealth.
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