Home Latest Latest GPS to Financial Freedom-Part 2

GPS to Financial Freedom-Part 2

User Rating: / 2
PoorBest 

 

Read Part 1 of this article HERE

ello again, in my last article, I started unveiling a valuable GPS navigational structure into achieving financial freedom, as opposed to the popular media proclaimed opinion. In order to accomplish that, I recommended that we take a deeper scrutiny into our spending habits by analyzing whether some personal expenses are really necessary, and at the same time readying ourselves to change or adapt our perceptions.
  Our lives are a reflection of our habits more than our education and one of the main habits promoted by the media is “spend! Spend! Spend! You deserve it!” Hardly is the value of putting money aside for investing ever recommended or taught. One of the reasons we wake up early in the morning to go to work is to make some money and earn a living, but does that suggest that we spend it? No! But the media, especially TV and advertising tries to emphasize on consumption. (Buy one get one free, good or bad credit we accept them all. You are pre-qualified.) All of these promotions target our restrain and discipline. If we loose it, we accumulate debt instead of wealth. To counter the above notion there are some perceptions we need to address and just like it is required in a GPS navigational system to have a destination address before heading out on our journey, please let us start by answering the following questions.
-How do you judge success? Is it by the people around you? If so is it by what they display giving them extra points by what they wear, drive or where they live?
-Are you plagued with the need to impress your friends with things like a new car, a big house with expensive basement amenities?
-Are you encouraging your children to have every toy they demand in an effort to give them what you never had and therefore making them high level spenders with expensive tastes like designer clothing and luxury cars?
-After your lengthy education or hard work is the greatest and best reward in mind a brand new car or an expensive holiday?
-Is your pending or anticipated increase in income like tax-refund earmarked for consumption instead of investment?
 If the answer is yes to anyone of the above questions, then your perception needs urgent reorientation or repositioning. You are working for things focused on the symbols of economic success that in the long run will lead you to under accumulate wealth as you dig yourself deep into debt. You are allowing others or outside influences to determine your financial lifestyle.

onsequently, I believe there is an urgent need to educate ourselves on the best ways to counter our old perceptions and habits and learn new ways of looking at money.
 Folks, I ask you another question. What is money? A medium of exchange, (a go-between form of substitution,) you see the dictionary does not have a clear-cut answer to this question. Money is an idea or a conception, if you want to make more money, simply formulate a proposal, or create a scheme. As opposed to popular belief, money is not a god. Money is a tool, just like your talents and gifts or the Jembe and Machete we use in our farms back in Africa. Use it wisely and it becomes a great devoted servant, but use it carelessly and it will wound you or eventually enslave you. Now that we know that money is an idea or a tool, then, it is only right to state that the single most powerful asset we all have is our mind. And educating ourselves on the ability to master financial literacy by learning the strategies, formulas and laws behind the science of money making is the greatest foundation into financial freedom. This is the deep-seated fact. And this does not require a rocket scientist, no; this is simply entrepreneurship, (a willingness to undertake new or risky projects). This requires using financial intelligence instead of hard work to achieve our dreams. Most of us never see opportunities because we are looking for money and security. We are never prepared to play smart; instead, we play it safe.
 We should never allow the power of money to control us or to be used against us. Case in point, “Work harder and you will be promoted. Work longer and your retirement package will be handsome.” Forget that and start learning how to own the power to promote yourself and manage your own retirement schedule.
 

Do you know that the money you work hard for is taxed more than the money working for you? And learning how to change from the misnomer formula of earning money then paying taxes before paying yourself to the worthwhile formula of first paying yourself before paying your taxes is significant. Let us educate ourselves the difference between an asset and a liability. Assets bring in cash flow while liabilities create expenses. Many people buy liabilities with the misunderstanding that they are assets. Avoid liabilities at all costs and this principle touches on everything around us including relationships, may it be through blood or marriage.  Learn to associate with people who add value to you not with the ones dragging you down the drain. Somewhere in Africa it is said that a reliable dutiful woman is identified by her earthy looks as opposed to her prettiness. That principle too is paramount in identifying great investments.

Let us learn to be different by seeking new ways to solve our financial problems. Fear of being different causes one to conform to commonly accepted opinions or popular trends. Learn to fight clichés like, “Come Friday after work and it is all of us to the watering hole and a round of drinks for everyone on me.” Your money has more value than spending it at a mediocre happy hour pub. Which brings me to my next point, the other main cause of most financial struggles is self inflicted fear and ignorance. We all have great gifts and potentials but we are held back by past failures, self-doubt, pessimism and arrogance.  It is not that having all these phobias is wrong, no, it is how we deal with them that count. Let us learn how to analyze instead of criticize and let self-doubt open our minds and eyes instead of closing them. Let us discover how to handle failure by learning from our mistakes rather than harboring bitterness, ignorance or cynicism. If you hate risk and worry, just remember that even driving to and from work involves a lot of it. Allow those feelings to inspire you with courage and the urge to win and overcome.

n the real world the need for courage or ‘guts’ or ‘daring’ to take risks is pivotal to achieving financial freedom. Often it is not the educated that get ahead but the bold and this is why being well-educated, high income earner does not automatically translate into financial independence. It takes great courage and sacrifice: Sacrificing high consumption today for financial independence tomorrow. Being frugal; avoiding spendthrift temptations by placing much less priority on standard of living issues.
  It is not the idea, not the industry or the quickly get rich educational kits being sold everywhere that will lead you towards the heights of getting wealth, no, it is the ability to multiply the little that you have other than spending it, and even further, using the borrowed-other people’s money to make more money which only brings fruit depending on the amount of talent, courage and discipline you have accumulated.
  Folks, now that we are willing to learn and reposition ourselves by planning our work and working our plans, having identified that our bad habits, fear, self-doubt and cynicism are the major barriers towards achieving financial freedom, how do we multiply the little money that we have? Good question; please, allow me to answer that question on my next final article. Hope you will be as patient, thank you and God bless.

Written by John Waireri for This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   He is also the author of the novel, “alone with my dreams,” and you can buy it from amazon.com or publishamerica.com

Users' Comments (0)

Comment an article   Name   E-mail    Title Available characters: 600  Notify me of follow-up comments Enter what you see:

No comment posted