Everybody Can Be Rich Financially, Do You Know How?

[Comment]  [Print] 

If I make a statement that everybody – no exception – can be rich – financially – , people usually laugh at me and tell me that I am dreaming. That’s understandable as we can see not too many people around us that can be categorized as rich. When I say rich, I means rich financially – have more money that they need – not some proverbial “rich at heart” or something else. So, how you can be rich ?

How to Be Rich: A Guide To Financial Freedom

To become rich is a journey. A long journey that will take maybe 10-15 years to achieve. Of course you can make it faster, but 15 years is reasonable target for every body.  And because it’s a journey, you need to have a map to guide you through.

Remember, unless your lottery hit a jackpot and you become rich literally overnight, getting rich is a commitment. Either you want it or not. If you want it, how bad you want it. That’s the only factor that prevent you reaching your goal.

Here is your map and milestone:

  1. Change your attitude / mindset about money: see your money, income even life with new perspective that not prevent you to get rich. This is actually quite hard than you can imagine.
  2. Live within your means, have some substantial saving:  have a budget, produce significant saving and make it a habit. No matter how little and struggling you are, you have to have a budget and make a saving.
  3. Learn About Investing & Money: The only proven way to get rich is by investing. Investing in stock market, property or even business / internet business. But when you learn about investing you have to learn about the mechanics of money as well. Without this you will be blinded.
  4. Get out from your “bad” debt, don’t worry about “good” debt: debt for investing is okay but debt for lifestyle is big “No”. Eliminate your credit card debt first before you move on. But on the other hand you need to be comfortable living with debt for all the investment asset.
  5. Fight for Financial Protection: Financial Protection means you have enough cash to support your current life for at least 6 months without work. Of course this is the direct result of your actual saving that you have produced.
  6. Start Investing: Create passive income. You investing will be more effective and profitable when you know that even if you lost that money, your family will still be okay.  If you are carrying unnecessary pressure to your investing activity (e.g: the stock have to go to certain price otherwise you cannot pay the mortgage), then you will not that long.
  7. Getting Passive Income: Toward Financial Security. Accumulate passive income, re-invest the result until such value that you can meet your life expenses only from this passive income (while still got your regular income)
  8. Reach Financial Independence: This is where your passive income already exceed your regular income.
  9. Financial Freedom: This is where your passive income not only can fund your lifestyle and luxury item, but also can sustain it all year long if all activities is stop at an instant.
  10. Absolute Financial Freedom: you don’t want to know… :-)

It’s Up to You

Always remember a famous quote from Henry Ford: “Whether you think you can or can’t, either way you are right“. Want some example?

  • You are 65 years old, broke and on very limited pension. Can you start a business and make money ?
    Colonel Sanders say he still can ! He got rejected 1009 times for his chicken recipe, but the rest is history.
  • You are 25 years old professional on the start of your career. Suddenly you are diagnosed with cancer in your testicles, lung, abdomen and brain. Doctor say you only have less than 50% survival rate. Do you think you can get any better and go to the peak of your career?
    Lance Armstrong say he can and win tour de France 7 times consecutively no one ever done it.
  • You are 25, born without both arms. Do you think you can become martial art expert or even become a pilot and fly a plane ?
    Jessica Cox say she can.  http://www.rightfooted.com
  • Now, it’s your turn. Do you think you can be rich and achieve your financial freedom?
    What do you say ?

Everything is up to you!

Reference: “What I Didn’t Learn AT School But Wish I Had” by Jamie McIntyre. The digital version of this book can be obtain legally and free of charge by clicking here. Some minor modification to enhance the definition has been applied on this article but did not change the big picture of the understanding.
Be Sociable, Share!
  • Twitter
  • Facebook
  • email
  • StumbleUpon
  • Delicious
  • Google Reader
  • LinkedIn
  • BlinkList

Comments

What Say You....

Tell us your comment, question or opinion...
(Your entry will be reviewed and answered generally within 24 hours, tick the box below submit button for immediate notification)
(required)
(required)
(optional - for full backlink)