Are you yelling for financial freedom? If yes, then this is for you. To become wealthy, you can use these principles.
7 Principles To Attain Financial Freedom
Principle #1: The Rich Don’t Work For Money
You can spend every hour of every day working for money and yet can’t get ahead. But on the other hand, when you spend most of your time looking for assets, you will always have money.
The lesson here is, that the rich don’t trade their time for money instead, they acquire assets that make money for them. Most of the time, life doesn’t talk to you, it just sorts of pushes you around and each push is life saying “WAKE UP”.
If you want to become wealthy, you must know that people’s lives are controlled by two emotions, which are FEAR
Some people say they are not interested in money but yet work over 8 hours a day to get more of it. When not controlled properly, fear and desire can lead you into life’s biggest trap.
Principle #2:Financial Literacy
If you want to get rich, it’s not about how much money you make, but it is about how much money you keep. Intelligence solves problems and produces money, but money without intelligence is soon gone.
Do you know that rich people acquire assets while the poor and middle class acquire liabilities that they think are assets?
To become wealthy, you must understand the difference between a liability and an asset.
All you have to remember is that asset puts money into your pocket while liability takes money out of your pockets. This is one of the only rules you will have to know if you want to become rich.
A lack of financial knowledge is the number one reason why the rich get richer and the poor get poorer.
Principle #3: Mind Your Own Business
To sum up, in this principle, the rich focus on their assets while everyone else focuses on their income statements. To follow this principle, you need to build and maintain a strong group of assets.
An asset might be a piece of real estate, a website, or anything that produces positive cash flow for you every single month.
Principle #4: The Power of Corporations
You probably don’t know that corporations are one of the biggest secrets of the rich and they serve as a smarter way to play the game of life.
The rich use corporation to take advantage of legal tax loopholes and protect their money. If you own a business and make a decent amount of money, you need to consider setting up a corporation.
To get rich, you need to train your financial IQ, which is comprised of your knowledge across several broad subjects.
To improve your financial IQ, you must increase your knowledge in areas like;
- Accounting; for reading and understanding numbers
- Investing; for using your money to make more money
- The Law; understanding tax laws and how to keep more of your money
Your financial IQ is a synergy of all these skills and talents combined.
Principle #5: The Rich Invent Money
This principle can be summed up as the rich seizing opportunities to invest money. Remember that great opportunities are not seen with your eyes, they are seen with your mind.
The single most powerful asset you have is your mind and if trained well, can create enormous wealth for you.
In the real world, it’s not the smart that get ahead, but the bold. This means that the bold are risk takers and tend to make the most financial progress, even if they are not as smart as others.
Principle #6: Work To Learn, Don’t Work For Money
This means that rich people work to learn and not for job security. If you want to get rich, you should know a little bit about a lot of subjects. JOB is an acronym for “ Just Over Broke”. It means that focusing only on a job will prevent you from becoming truly wealthy.
Principle #7: Overcoming Obstacles
The primary difference between a rich and a poor person is how they manage fear. Even if you have an excellent financial IQ, there are a few major obstacles that will hold you back from becoming rich. These obstacles are;
- Fear; people are so afraid of losing that they lose
- Cynicism; is a kind or another word for self-doubt and for many, it is a major obstacle
- Laziness; is another obstacle that we all struggle with
- Bad habits; can have the same effect. Stop watching so much television and going out to drink all weekends
- Arrogance; the final obstacle that everyone must pay attention to is arrogance. Every time you have been arrogant, you lost money because you believed that what you didn’t know wasn’t important. Don’t let arrogance steal your money.
The Ten Steps To Awaken Your Financial Genius For Financial Freedom
Step #1: Find a reason greater than reality
Have a strong reason to pursue Financial Independence
Step #2: Make daily choices
Choose your daily activities wisely to invest in your mind and goals.
Step #3: Choose your friends carefully
Be careful who you choose to associate with.
Step #4: Master a formula then quickly move to the next
The world is fast changing, and you need to be fast at adapting if you aim for financial freedom.
Step #5: Always pay yourself first
Pay yourself first to enhance self-discipline. If you can’t control yourself, don’t try to get rich.
Step #6: Pay your brokers well
It’s hard to measure the power of good advice.
Step #7: Be an Indian Giver
Make investments that net free land or other goodies.
Step #8: Use assets to buy luxuries
Always buy luxuries with income from assets and not loans.
Step #9: Choose Heroes
By having heroes, it becomes much easier to tap into your raw genius.
Step #10: Teach and you shall receive
When you need something, give what you want and it will come back in buckets.
Other Helpful Resources To Start Your Journey Of Financial Freedom