Plan And Achieve Financial Independance
Create financial independence, by first setting and writing down your goal to achieve exactly that. Then develop a plan that is aligned with your goal that will allow you to turn part of your monthly income into capital.
Work your plan and build up your capital reserves. Invest the capital that you accrue; into creating a profitable enterprise and then invest the profits that will flow from your successful enterprise into investments that offer recurring monthly annuity income.
This is a really simplistic, yet very effective model for creating net worth and financial independence. The first and most important part of the process is to define exactly what financial independence means to you. Financial independence is simply the time when you have created the circumstances where you can live on the income of your personal resources.
Once you have completed this crucial step, creating financial independence becomes a simple process of developing a plan that will force you to spend less than you earn. As much as this may seem like common sense, it is most certainly not common practice. Way over 75 % of households survive pay cheque to pay cheque. These households are one or two pay cheques away from bankruptcy.
You can reverse this situation if you are committed, change your philosophy about money and develop a plan that allows you to spend only a fixed portion of your earnings each month. Start small and spend 95 % of your earnings each month and save the other 5 %.
As you develop this new financial savvy and you begin to see your reserves and capital grow. You will be inspired to increase this to 90 % spend and 10 % saving. I believe that you should only spend 50 % of what you earn and invest the other 50 %. This is the quickest and wisest way to create financial independence, but not one most people are willing to follow.
We have become such a now generation that it has become virtually impossible for us to take a long term view and for us to accept the concept delayed gratification. The small cost of reduced consumption spending in the short term will most certainly be worth the freedom that comes when money is no longer a factor and you are able to have, do and be anything you want.
Ensure that you remain disciplined and that you follow your plan and slowly over time you will build up reserves and capital that you can invest into a profitable enterprise. Invest your accumulated resources, time and energy into your enterprise and create a sustainable profit from this enterprise. Invest these profits into investments that will give you an annuity income for the rest of your life and freedom is finally yours.
I believe that anyone can achieve financial independence within ten years if they are disciplined and follow their plan. This can be achieved sooner if you reduce your level of consumption, have a lucky break or you have special, unique skills or talents.
Author: Andrew Horton Convention Inspirational Speakers Johannesburg