What is the secret to Financial Freedom?
Simple secret to Financial Freedom?
Invariably, all of us want to be rich, have a lot of money at our disposal and lead a great life.
But, what do we witness in the practical world?
Only a handful of people are rich, leading a life of their choice. My research and study for more than 40 years has revealed the predicament of a large number of people who are going through extreme financial stress at various levels. But, they are hesitant to seek financial help given the stereotypes. They need guidance but are unaware of this very need. Consequently, they silently suffer and take their dreams to their grave.
This has to change.
As a conqueror of such a situation, with a great deal of hardship undoubtedly, I have decided to share my life experiences to help and guide others. I have consolidated different experiences of mine and have devised strategies that have proved to be very effective to a lot of individuals.
On the auspicious occasion of New Year, to embark on a good note, I’d like to share some of these strategies through my blog.
A study in the early parts of the nineteenth century revealed that 90% of the wealth is in the hands of 10% of people and the balance 10% of wealth is spread amongst the 90% of people. It was also analysed that if, by any means, the entire wealth was equally distributed amongst all the people, within 7 years the entire wealth will go back to the 10% of people who were holding it earlier.
Why would this happen?
What do the 10% know which the 90% are ignorant of?
Very simple. It is Financial literacy and practical money management skills.
What is surprising even today is that we see plausible development in all realms of life yet Financial Literacy is unspoken and unheard of to many. Why? It is a conspiracy which is being passed on as a legacy by the same people who are controlling this world.
This, too, has to change.
Let’s understand the simple things about money management to start with.
We all know that money is a vital force in our lives. Money is, invariably, required in all spheres of life. We need money to survive and thrive, buy whatever we aspire for, take care of our near and dear ones. Therefore, Money is indispensable.
The question that arises now is – How do we get all the money we need?
In order to have all the money we need, 4 attributes of money are to be understood.
We have been trained only in the area of earning money but not the other three. In other words, we know how to earn money but we don’t know how to manage that money.
I have heard umpteen people say :
- I am not earning enough.
- I do not know where my money is going!
- All my dreams are still dreams.
- I am worried about my children’s education and marriage.
- My future is looking bleak and what not!
Is there a way out?
Of course, there is. All it takes is a small effort to correct one’s money habits.
To bring about that change, let’s understand people and their money habits.
- Common man: Will earn & spend.
- Responsible man: Will earn, spend and save if some money is left after spending.
- Wise man: Will earn, save & then spend.
- Intelligent man: Will earn, Invest & then Spend.
- Financially literate man: Will earn & Invest in assets. and those assets will fund all his expenses.
If you notice the financially literate man’s money habits, he is not spending from his earnings. Then how is he funding all his expenses is what one has to ponder about.
It is quite simple, actually. He understands that:
- Expenses are permanent in life.
- Income is temporary.
- Whatever one earns is mere, like a seed.
- He knows it is not good to consume the seeds.
- Therefore, he converts all seeds into fruit-bearing trees (ASSETS) and enjoys the benefits throughout his life.
Can all and sundry attain financial freedom?
Yes, anyone can. As a matter of fact, a lot of my clients have.
These are a few basic things that one has to understand and imbibe to attain financial freedom.
People who understand this simple yet vital rule will work towards converting all the seeds they earn into fruit bearing trees (ASSETS) and lead a Spectacular life.
Is it difficult to imbibe and follow these strategies?
No! Not at all.
If one is ready to give time, discipline and patience and finds a mentor who can help him disunite his emotions from money decisions, he is sure to attain financial freedom.