Step 1: Financial Intelligence
Becoming educated about your finances will play a major role in your financial future. Knowledge is a very powerful tool and therefore you should strive to enhance it to the best of your ability.
In todays age, It it becoming increasingly easier to acquire. You have Books, Magazines, Newspapers, Television, Radio, your local bank, and of course... the World Wide Web.
Many people ignore or just think they know everything there is to know, and this is where failure begins, so the better your financial knowledge is, the easier it will be to get there.
Step 2: Smart Money Management
This is where a lot of people go wrong. You MUST track how much you spend, and WHAT you are spending it on.Writing out a weekly budget is a very smart thing to do, It makes it much easier determine your cashflow.
Once you know where your money is going, try so set a limit each week. So instead of spending say $200 a week on clothes for example, why not set a limit to $50 a week? This does not mean to should not have a life, but if
you really want financial freedom as soon as possibe you are going to have to make some sacrifices.
Now, re-evaluate your cashflow, the extra money you can save by limiting your budget speaks for itself, Doesent it?
If you have credit cards or personal loans, find out which one has the highest interest rate and focus on loading any surplus money you have each week onto that one loan. You will see it rapidly decrease and once paid out, do the same again on your next loan with the highest interest.
Once all debt is paid off, open up a savings account and feed the extra money into it,and don't touch it, only for the mean time though....
You must stay focused on what it is you want to achieve. Think for the future, not the present.
Step 3: Setting Goals
Everyone needs goals, and this is what makes us strive for success. The best way in my opinion is to write out a list of goals you want to achieve, and set a time frame for each one.
You should write out your list of goals in order of short term e.g- ( pay off credit card ) to long term e.g- ( retire in 10 years )
Once you have your list, the best thing to do is print out at least 5 copies and place them inside your home where you will see them the most, on the fridge door is a really good place for starters.
Everyday when you get up, and you see your goals, it really makes you happy to know that you have a financial plan and you aretaking action. Its a great feeling.
Step 4: Grow money trees
Now comes the really exciting part. Once you have a small amount of money saved, start thinking outside the box, think of ways you can turn this money into more money.Think of something you are good at, something that can create an extra income stream, and sell it.
For example- I am a carpenter by trade, I started building barbeque tables,clocks, and toilet seats! and selling them at markets and advertising in the local paper.
Get a little creative with your ideas whatever they may be, and put them to work.
Ever heard of the saying 'Money Makes Money' ? Well,it's True.Now, This is key if your wanting to go to the top of the ladder, You need to sit your money where it will make you more money, Thats why leaving it in your saving account won't do you much good at all.There are many ways you can do this- The sharemarket, real estate,start a business....
Which ever vehicle you choose to invest in is completely up to you.Just remember to do your homework, know your market,and stay focused.
Step 5: Find A Mentor
Having a good mentor can have a big impact on your road to financial freedom. Once you have pursued your investment vehicle, find a good mentor who can give you good advice and is very good at what they do. I cannot stress enough the importance of having a good mentor.
Step 6: Never Give UP
Sometimes people get a little off track and form a bit of self doubt, Just remember what you set out to do in the first place...Find Financial Freedom. Everyone is different and will undertake their road to success in their own way.
I have always believed if your going to do something, do it well and don't look back.
To your success, Ben.
Resource: http://www.isnare.com/?aid=378830&ca=Self
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