Law of Attraction Book

Copyright (c) 2007 Chiswick Consulting Limited

Nearly 80% of all purchasing decisions are made by women. Women make the choice of which holiday 92% of the time, which bank account 89% of the time, in DIY 80%. Even the purchase of the family car is decided solely or mainly by women in 60% of cases. Women’s wealth continues to grow. Between 1970 and 1998 men’s median income rose by 0.6 percent whilst women’s rose by 63%.

The importance of developing products and services that meet women’s needs cannot be overstated. When buying financial products and services, wealthy women have certain needs and concerns which are different to those of men. Understanding why and how women create wealth, where they invest and why is critical to those who wish to sell financial service products to this potentially huge and poorly catered for group.

In 1998 the average male millionaire in the UK was worth £2.7 m (US$5.42m), while the average female millionaire owned just £1.28 m (US$2.56m). By 2006, women had caught up considerably, with the average female millionaire worth £1.97 (US$3.94m) compared with £2.96 m (US$5.92m) for men.

The increase in female wealth has not been limited to developed countries. In 2006, the female paper tycoon Zhang Yin was listed by the Hunan Report as the wealthiest person in China with an estimated US$3.4 bn.

So how are women creating this wealth? The traditional sources of money for women have been inheritance from parents or husbands or financial gain via divorce. Whilst these methods for achieving wealth are still evident, an increasing number of women have created their wealth through their job or through the ownership of a business.

Whilst men’s major motivation for starting a business is financial gain, women tend to cite flexibility, freedom (from corporate structures and politics) and financial gain as the main reasons for setting up on their own. Holly Sargent, Senior Associate Dean for Advancement and Senior Director for University Women’s Studies at Harvard University points out that when women start a business it often does not have the sole purpose of generating wealth. “The businesses are more likely to be family orientated, less commercial and more socially or more ‘gap in the market based’….A lot of new products are created to fill female-oriented gaps in the market.”

Income from investments has become an important source of wealth for wealthy women. Up to 38% high net worth women in Asia cited income from investments as one of their three most important sources of wealth. In Europe, this was lower at 24% with 64.6% stating income from their job as one of the three most important sources of income. Independent of their husband or family, women are creating their own wealth through investments, ownership of a business or through a well paid job.

Motivations for amassing and protecting wealth are almost identical for men and women. Financial security in retirement is seen as the main priority followed by a better personal lifestyle and enjoyment of the finer things in life. In other words the goals appear to be neatly divided between spending on the present and saving for the future. More intangible factors such as status and the sheer enjoyment of making money, come much further down the list.

Women want wealth to enjoy a better lifestyle. They spend their leisure time and disposable income on holidays and home improvements, just like men. The only significant difference in spending is that men are likely to spend a greater proportion of their disposable income on cars and gadgets whilst women focus on clothes, jewellery and watches ‘ so far the clich?olds true.

However, women do invest quite differently to men. Women are far less likely to take risks with their money, whether in their personal finance or business affairs. Research suggests that more men than women invest in financial products that are considered to be at the riskier end of the financial spectrum such as hedge funds, private equity, structured products and derivates.

Women take longer to come to a decision about what to invest in and are less likely to go to a third party for advice than men. Men are more likely to consult tax specialists, accountants, private banks, brokers and the media. The only source of advice that is more widely used by women than men is the high street bank.

This does not mean they are less successful or able investors than men. In Tom Peters book ReImagine! he quotes the National Association of Investors on the returns of investment clubs. Whilst men only clubs delivered 15.6 percent, women only clubs delivered 17 percent returns.9 percent.

Wealthy men are more likely to use personal trainers, chauffeurs, chefs, alternative health practitioners, property search agencies, lawyers and private banks than women. However, wealthy women are more likely to use what may be considered ‘lifestyle’ services such as personal concierge and shopping services, life coaches, personal stylists, bodyguards and private doctors.

Women tend to invest to reach a particular goal, for instance, a college fund, retirement, a major holiday. Once the investment goal has been reached, women are more likely to ‘protect’ the fund rather than put it at risk through further investment.

So what are the conclusions that can be drawn about marketing financial products and services to high net worth women:

1. Whilst products do not have to be marketed as a ‘women only’ product, they do need to provide clear, comprehensive information from which the individual can make an informed choice. As many of the women will be making investment choices without the benefit of advice from independent advisors or tax specialists, everything produced must be jargon free and in plain English. Provide well researched information and help via an on line help desk or information line.

2. Build a relationship through education. Educate women about financial matters that may concern them depending on their age or lifestyle.

3. Develop products ‘themed’ around issues such as ‘wedding’, ‘college fund’, ‘retirement’ Encourage continuing investment in multiple closed end funds

4. Women do hire personal trainers and are prepared to pay for the personal touch. A ‘financial coach’ may be the incentive a woman needs to invest in a particular product or organisation.

admin Uncategorized Business Owners, Entrepreneurs, Finance, Financial Services, Global, Marketing, Marketing Services, Money, UK Women, US Women, Wealth, Wealth Building, Wealthy Women, Women

Wealth Building in Trying Times

By Herbert Harris 

 As we listen to the news, we get a sense of trying times that move from crises to crises.

However, where there are crises, there is always opportunity. While many live paycheck to paycheck, or have too much month at the end of the money, there are certain people who seem to prosper and get wealthy in the midst of recessions, depressions, and trying times.

What is their secret? Do they have special talents that we do not possess? How is wealth building in trying times any different from wealth building in prosperous times?

In trying times, your back may be against the proverbial wall. You’ve got to get results. Failure is not an option.

My dad – when things got rough – used to say, “Herbert, when times are tight, you’ve gotten to straighten up and fly right.” Translation – you’ve got to be clear about where you’re going, and how you’re going to get there.

Over the years, as I faced the trying times that periodically occurred, I put aside my pride and sought counsel from those who seemed to weather life’s storms and in fact grow wealthier in times of apparent adversity. I was persistent in seeking them out and refused to let them not talk to me. They respected my persistence and shared their wisdom.

This is what I learned:

Nine Steps to Building Wealth

1. Take responsibility for your life and affairs.

We are where we are in life because of our thoughts, emotions, associations and behaviors. The first step to wealth building is to take complete responsibility for your present situation. Your upbringing, race, education all have an impact on your present situation. However, you choose the way you respond and thus have ownership of the outcome. The Bible says, “Choose you this day whom you will serve.” We are where we are as a result of the choices we have made. Affirm daily, If it’s to be, it’s up to me.

 

2.      Realize that everything begins in thought.

 

“A man shall have whatsoever he thinketh in his heart.” So, don’t thinketh anything that you don’t want. In order to create wealth in trying times, we must think wealth, and, more importantly, feel wealth. We must also change our frame of reference from trying times to exciting times. If your bills aren’t paid, and your job is shaky, these are truly exciting times.

 

Reprogram you life perspective from, “These are trying times filled with numerous crises” to “These are exciting times, filled with great opportunities.”

 

3.      Write your vision.

“Where there is no vision, the people perish” Conversely, “where there is a vision, the people prosper.” To create wealth in exciting times, we must set aside the current distractions of lack of money, lost of jobs, foreclosure and endless examples of lack and limitation. We must develop a vision of what wealth means to us on a very detailed and personal basis.  

 

Take time to sit quietly, meditate, and visualize exactly what wealth means to you. See it, feel it, touch it, smell it. Describe it, in writing, completely, concisely and in great detail. Own your vision.

 

4.    Make necessary changes in your life.

 

We must make the changes in our thoughts, emotions, associations and behaviors that will support and make us congruent with our vision. Replace fear with faith. For example, replace fear of losing your job with faith that your boss can’t do without you and act accordingly. Replace fear of losing your home or being unable to pay your bills, with faith that you can develop a budget and create a way to save your home and pay your bills. After all, isn’t faith the substance of things hoped for and the evidence of things not seen. Put your faith to work.

 

5.    Build a team.

 

Since these are exciting times, shouldn’t you have the benefits of counsel with people who know more than you do? As my dad implied, people who know more than you do about a particular matter can help you “fly right.”

 

Nobody knows everything about anything. Surround yourself with people who have expertise in the areas you need to realize your vision.

President Obama set a magnificent example of surrounding himself with capable people who complimented and supported his vision. Listen to and be guided by the advice of your team members.

 

6.      Make a written plan.

The most important element in realizing your vision is the formulation and execution of a definite, practical plan that works. Using the expertise and assistance of your team members, write a detailed plan for realizing your vision.

Commit to the execution of that plan and get busy.

 

7.      Take continuous action.

Diligently follow your written plan. Live every day with commitment and passion for the realization of your vision. Don’t stop for rest and reward too soon. As your efforts begin to produce rewards and results, work even harder. Success and achievement come only thorough continuous work. The only place that success comes before work is in the dictionary.

 

8.      Monitor your progress.

Constantly monitor the productiveness of your plan on a daily basis. As your plan works, double your efforts for greater results. If it is not working, collectively develop a new plan. Give each plan sufficient time to produce results. Be willing to up your game and put in more time, money and energy. Use the power of collaborative action to energize your progress.

 

9.    Don’t quit.

 

To quit demonstrates your own lack of belief in yourself. You must out-last your competition. In the exciting times that we are presently experiencing, there are many who will be overwhelmed by the negative news, employment or foreclosure statistics. Be not one of them. Your belief in your vision is the fuel that will sustain you and give wings to your vision.

 

“Come to the cliff,” He said.

“We are afraid,” they said.

Come to the cliff, he said

They came. He pushed them,

And they flew.

For the cliff of opportunity was disguised as crises.

 © Copyright 2009, LifeSkill Institute, Inc., PO Box 302, Wilmington, NC 28402; 910-251-0665

Based on The Twelve Universal Laws of Success, Second Edition, ISBN 0-9748362-1-4 a new book by Herbert Harris, available at Amazon.com, Atlas Books, or through the www.lifeskillinstitute.org. Visit www.12uls.com to learn how to get a Bonus Copy of “How to Study” Call (800) 570-4009 to order books. Visit our website for weekly success message and download Twelve Affirmations To Live By Poster.

E-mail: lifeskill@earthlink.net to receive our Success Newsletter.

admin Uncategorized Action, Change, Finance, Goals, Money, Nine Steps, Passion, Plan, Progress, Reward, Success, Team, Thought, Times, Trying, Vision, Wealth, Wealth Building

Can you really build wealth automatically?
The answer is yes…you just need to acquire a new wealth building habit.
You are going to love this habit because you do not even have to remember it….a banking computer remembers the habit for you! How is that possible? Read on and you will soon see.
Here is how the automatic wealth building habit works. It is based on the miracle of compounding interest and the amazing banking technology that is available to virtually all of us today.
Step 1
If you do not have a bank account with “Bill Pay” go to a bank that has it and open a new account. Ask them how many checks can be sent per month, can it be managed via the internet, what are the costs. Many banks now offer this service for free as a promotion to get more customers.
Step 2
Decide who it is that you want to help build wealth. Yourself, your child, a grandchild, or even a friend. This habit also works for building spiritual wealth…more on that later.
Step 3
After you open the account you now have the ability to select any amount of money that you want sent to any person or organization and at almost any time interval. Some banks even offer an unlimited amount of bills that can be sent. The banks will then mail checks at regular intervals to the people or organizations you have designated…you do not have to do anything.
The real power of this habit is that you are not going to be sending bills in most cases…you will be sending wealth building payments….automatically!
OK, before we get to step 4 let’s look at the amazing power of compounding interest to see how much wealth can be built over time with this habit.
Here is an example of how much wealth you could build by having your billpay send just $50 per month into an account (mutual fund, IRA, etc) that has a 5% yield.
1 Year = $615
5 Years = $3,400
10 Years = $7,764
25 years = $29,775
You can learn more about compounding interest by doing a Google search on the internet. Obviously the amount of wealth you can build varies with the amounts and frequency of bill payments sent to your wealth building accounts and your rate of interest.
This is where research can help you, it is beyond the scope of this article to show you all the amazing possibilities that exist.
The beauty of the bill pay system is that it is very easy to adjust your recurring amounts up or down based on your current financial situation. As an example, you could set up your bill pay to send $12.50 each week into an account (Equals $50 per month) or change it to $15 per week for a few weeks and then back down to $12.50 at a later time. You decide exactly who gets the money, how much, and how often….you have complete control at all times. It is amazing wealth building power.
Step 4
Now it is time to set up your automatic wealth building habit using your banks billpay system. Get the address of the person or organization you want the money sent to including the account number. Go online and set up a new account with this information. Set frequency and amounts. Note: I have been doing this since 1992 and have multiple accounts (Charities, IRA’s etc) that have received money from me every month for 14 years and I have never written or signed a single check! I know from personal experience that the system works and I have never had any problems.
You can get very creative with how you build wealth and who you help build wealth.
* Set up an automatic bill pay to fund a child’s college education. There are many states that have plans that start with low monthly fees when the child is born or still young.
* Set up an automatic bill pay to fund a child’s savings account, just have the money be sent to the child’s bank with their account number listed on the check memo “Deposit to account ######”
* Set up an automatic bill pay to send a charity a payment every week. Remember that I said earlier that this habit can help you build spiritual wealth? If your church receives an automatic charity payment every week you are helping to support your church every week, even when you miss a Sunday service.
* Set up an automatic bill pay to send money to someone in need.
* Set up your bill pay to actually pay bills that you have paid late in the past….you may be able to save enough in prevented late fees to fund your wealth building payments!
The possibilities are endless…..you just need to take action and make it happen!

admin Uncategorized Finance, Money, Success, Tony Robbins, Wealth, Zig Ziglar

Turning debt into wealth can seem like an impossible task, especially if you find yourself in a position of debt. But, the principle of transforming debt into wealth is a sound one. And is a principle which has allowed many people to really make mass wealth thanks to the principle of turning debt into wealth.
Your principle is the most important thing to remember about wealth building and wealth creation. Your principle is the amount you start with, and if every gambler knew the principle of that first part of the money you have in your hands, they would never gamble!
You see, the principle amount of money you start with is the most important thing to protect. Someone should have told me that years ago! After having started my first real company, it started achieving success, but then turned for the worse. It ended up with me using up my credit card debt just to survive.
No, no, and no! I wish I learned this principle years ago! I am glad you are learning it now. Turning debt into wealth is not difficult when you know how, but the foundation is what counts, and that is the principle amount.
So, how do you turn debt into wealth? Realize that your principle could be your own money, but it does not have to be. I re-iterate that it doesn’t have to be your own money! When businesses want to expand, they get into debt!
Debt is the most important part of wealth, because it starts with some other person’s hard earned money. This saves years of effort to get to the first step.
To accomplish this needs some wisdom. If you are new to investing, making money for yourself instead of for someone else, you will not likely get the results you seek. Math comes in handy here, and here is why.
Understand the basics of math, which you did in school, and you will succeed in the wealth creation process. Imagine for a moment, you start with your principle, and after going through an equation, you get 1.5 times your principle.
This principle and the extra is essential. You protect the principle and the extra is profit, albeit gross profit. You need to factor in the debt to be able to convert into wealth. After all you want a profit.
So, you can put it in a high yielding savings account. Now, you have your principle protected, but if your credit card charges 30% per year compounded, then you have a problem with only getting a few percent from savings.
The biggest key is this – your debt can transform into wealth. Debt into wealth is not difficult, when you treat any kind of debt as a principle which can grow into a large tree of wealth.

admin Uncategorized Debt Into Wealth, Finance, Wealth, Wealth Building, Wealth Creation, Wealth Of Nations

Building wealth is all about having a system that implements fundamental steps that once you have learned can be applied to create wealth. These steps are crucial to achieving your Financial Freedom Day.
It is never too late to build a financial wall around you and your family that nothing can get through. This would be referred to as financial security. We call it your Financial Freedom Day! It is the day when you have enough assets that pay for all your expenses now and in the future. The quicker you identify your financial freedom day the better. It does not have to be 10, 15, 20 or even 30 years down the track. It is not unrealistic to have a Freedom Day of between 3-5 years. It is the day that you can travel with your family when and where you like with no restrictions, afford the home you want, put your children into the schools you desire and teach your children there are no limits.
Financial freedom is having an asset base which generates the income to not only meet your needs but to create a lifestyle that you dream of. You do not want to be relying on anyone for your financial freedom, the government, your employer, your partner, your husband, your family. Financial freedom changes your life!
So now you ask; how? How do I set a financial freedom day? How do I achieve fianancial freedom? Ask yourself At what age would you like to be financially free?
To achieve financial freedom you need a system. A proven, step-by-step, time tested system that will get you on the path to building wealth. This system
is called ‘Building Your Wealth Cycles’ comprising of 8 fundamental steps to building sustainable wealth. All entrepreneurs have a system to build wealth.
The 8 fundamental steps are as follows: -
1. Financial Conditioning
One of the first areas that must be looked at is your mindset with regards to money. Your mindset is a result of your financial conditioning, you must be aware of your conditioning and the impact it has on your potential to create wealth. You must be able to make the changes necessary to bring money and wealth into your life. We have been conditioned about our money beliefs from a very young age from people around us that loved us very much, like our parents, grand-parents, teachers, coaches, peer support leaders and other family and friends. They only know and understand what they have been taught about money from the family that raised them.
Start to think about the language that was used in the home when your were growing up. Was it “money doesn’t grow on trees” or “no, we can’t afford that” or “Do you think we have a money tree growing in the yard” or “I’ll put that away for a rainy day” or “Money isn’t everything” and finally “Money is the root of all evil”. These are just some of the beliefs that have been handed down generation to generation in countries all around the world.
We encourage you to sit down and write down some of your beliefs around money. Also, ask your children whether they hear your limiting beliefs around money and what are they.
2. Financial Baseline
Your financial baseline is all about identifying where you are right now with your finances. You must take a look at the reality of your present financial situation. Start today, from where you are right now. It might be a little scary or fearful. You cannot get to where you want to go without knowing exactly where you are today. Start asking some very basic questions like How much money do you currently earn? How much money do you spend? For how much, and to whom are you in debt? Do you have anything set aside in savings?
Just remember, what you did yesterday, last month and last year does not have be indicative of what you are capable of doing in the future. The most important thing you can do is take stock of where you are right now!
Also, how do you keep your financial records. Do you keep things in a shoe box and only empty it out once every year. Do you have piles and piles of paperwork everywhere. Do you have a filing system set up? If you don’t have your finances organised then you will not have a good clear picture of your financial baseline.
3. Financial Freedom Day
Millionaires always have a plan. They determine their financial goals and take action to make them happen. Your Financial freedom Day is the day when you’ve reached your financial goals. To determine when your Financial Freedom Day is you need to know what your vision is. Your vision is a picture of how you want to be living sometime in the future. In order for you to be motivated and move towards your vision it must be exciting, realistic and must never compromise your valuues. You must also excercise no limit thinking. There are 3 things you need to clarify in order to declare your Financial Freedom Day. They are your monthly cashflow, your total net worth and the day, month, and year that you want this to occur.
4. Managing Your Lifestyle Choices
Managing lifestyle is all about managing your debt levels. It is about creating a debt elimination plan that will eliminate credit card debt. There is good debt and bad debt. Bad debt is debt associated with lifestyle choices. It is where you’re using your income to increase your liabilities. Good debt is debt that is acquired through the purchase of assets, assets that are then invested to produce passive income.
5. Foundation of Your Wealth Cycles
A wealth cycle is a process whereby you are paying yourself first before paying anyone and anything else. This ensures that money is being allocated to your asset column. It is something that is ongoing and the purchasing of assets does not just happen once. A wealth cycle also includes an understanding of entity structuring for the purpose of protection and tax. You must also make a decision about the type of investor you are whether you are active or passive. You must also develop some money rules and stick to them.
6. Acceleration fo Your Wealth Cycles
This is all about education. You must educate yourself in the areas you want to invest whether it be stocks and shares or real estate or international securities or commodoties or collectibles. Seek mentors and coaches that specialise in those areas of wealth creation.
7. Leadership of Your Wealth Team
No-one creates wealth without a team around them. No more ‘Lone Ranger’ you must surround yourself with team. Leadership of you wealth team is one of the most under-discussed areas of leading your wealth. Make no mistake, you are the leader of your wealth team, whether you realise it or not. Your job is to inspire, motivate, hold and communicate the vision to all of those on your team.
8. Creating Sustainable Action
Keep taking action each and every day. You must every night right out a list of revenue producing activities. You must work towards your Financial Freedom Day, every day. Even if they are small action steps it does not matter.
Expand your knowledge in these 8 fundamental steps through education, mentoring, coaching and acquiring specialised knowledge and it won’t take you long at all to achieve levels of wealth you never thought was possible.

admin Uncategorized Building Wealth, Finance, Financial Freedom, Financial Literacy, Freedom Day, Wealth, Wealth Building

Women are discovering that money is power. They are now learning how to earn it, accumulate it, invest it, spend it and manage it like a professional.
According to a special programme presented by BBC Radio4’s Money Box which looked at women and finance they revealed that within 20 years women will control 60% of the personal wealth in the UK, claimed research published earlier this year. There are also 24% more women millionaires under the age of 44 than men, the report added.
This is a trend occuring in the United States and also here in Australia. However, there is still some catching up to do according to Forbes.com of 497 billionaires on the Forbes ‘World’s Richest People’ only 35, or 7% are women. Among them, only one is self-made. The other women on the list inherited money and in some cases whole companies, from their fathers or husbands. The reason being is that equal opportunity for women has only been around in the last 20 years.
Women now starting to take control! Women now are experiencing more opportunities, education and financial independence. If they need any reason to have control of their own money, here are some facts that may surprise you.
Women are marrying later, however, the money mistakes that are made early can linger into marriage and causes stress. With divorce dissolving almost one out of two marraiges, money is the leading cause of all divorces.
The poverty rate among children quadruples when they live with a divorced mum instead of married parents. When women are left to bring in the income, raise children and manage a home there is no time left whatsoever and the money does not go very far.
Women outlive men by an average of 7 to 9 years, many of them spending the better part of the last decade of their lives on their own. But many are widowed long before retirement. The average age when a woman is widowed is 56.
The income of widows drops 44% within three years after a husband’s death, due in part to the loss of the husbands private pension benefits. Social security is anything but secure.
These statistics indicate that women must learn to become financially literate and take control of their financial destiny. It is a known fact that a lot of women have not been raised with the same thought processes around money.
Men and women think very differently about money. The way girls were taught and conditioned about money was different than how boys were ‘initiated’ into money matters. Not that boys are given any better training about money! But the presumption was they had to learn financial responsibility as they approached adulthood.
Our culture doesn’t automatically support women in gaining financial competence. Worse, we draw much of our training from the media or people who are not skilled in money matters.
Building wealth is all about money and money is a highly charged, emotional topic. Most women function better in a non-threatening, non-confrontational learning environment that doesn’t intimidate them. Women need to seek out education and mentors they are comfortable with to develop their confidence around money and give them the steps to build wealth.
Building wealth is all about having a system that implements fundamental steps that once you have learned can be applied to create wealth. These steps are crucial to achieving your Financial independence.
It is never too late to build a financial wall around you and your family that nothing can get through. This would be referred to as financial security. We call it your Financial Freedom Day! It is the day when you have enough assets that pay for all your expenses now and in the future. The quicker you identify your financial freedom day the better. It does not have to be 10, 15, 20 or even 30 years down the track. It is not unrealistic to have a Freedom Day of between 3-5 years. It is the day that you can travel with your family when and where you like with no restrictions, afford the home you want, put your children into the schools you desire and teach your children there are no limits.
Financial independence is having an asset base which generates the income to not only meet your needs but to create a lifestyle that you dream of. You do not want to be relying on anyone for your financial independence, the government, your employer, your partner, your husband, your family. Financial freedom changes your life!
So now you ask; how? How do I set a financial freedom day? How do I achieve fianancial independence? Ask yourself At what age would you like to be financially free?
You need a system. A proven, step-by-step, time tested system comprising of 8 fundamental steps to building sustainable wealth. All entrepreneurs have a system to build wealth.
The system 8 fundamental steps are as follows: -
1. Financial Conditioning
One of the first areas that must be looked at is your mindset with regards to money. Your mindset is a result of your financial conditioning, you must be aware of your conditioning and the impact it has on your potential to create wealth. You must be able to make the changes necessary to bring money and wealth into your life. We have been conditioned about our money beliefs from a very young age from people around us that loved us very much, like our parents, grand-parents, teachers, coaches, peer support leaders and other family and friends. They only know and understand what they have been taught about money from the family that raised them.
Start to think about the language that was used in the home when your were growing up. Was it “money doesn’t grow on trees” or “no, we can’t afford that” or “Do you think we have a money tree growing in the yard” or “I’ll put that away for a rainy day” or “Money isn’t everything” and finally “Money is the root of all evil”. These are just some of the beliefs that have been handed down generation to generation in countries all around the world.
We encourage you to sit down and write down some of your beliefs around money. Also, ask your children whether they hear your limiting beliefs around money and what are they.
2. Financial Baseline
Your financial baseline is all about identifying where you are right now with your finances. You must take a look at the reality of your present financial situation. Start today, from where you are right now. It might be a little scary or fearful. You cannot get to where you want to go without knowing exactly where you are today. Start asking some very basic questions like How much money do you currently earn? How much money do you spend? For how much, and to whom are you in debt? Do you have anything set aside in savings?
Just remember, what you did yesterday, last month and last year does not have be indicative of what you are capable of doing in the future. The most important thing you can do is take stock of where you are right now!
Also, how do you keep your financial records. Do you keep things in a shoe box and only empty it out once every year. Do you have piles and piles of paperwork everywhere. Do you have a filing system set up? If you don’t have your finances organised then you will not have a good clear picture of your financial baseline.
3. Financial Freedom Day
Millionaires always have a plan. They determine their financial goals and take action to make them happen. Your Financial freedom Day is the day when you’ve reached your financial goals. To determine when your Financial Freedom Day is you need to know what your vision is. Your vision is a picture of how you want to be living sometime in the future. In order for you to be motivated and move towards your vision it must be exciting, realistic and must never compromise your valuues. You must also excercise no limit thinking. There are 3 things you need to clarify in order to declare your Financial Freedom Day. They are your monthly cashflow, your total net worth and the day, month, and year that you want this to occur.
4. Managing Your Lifestyle Choices
Managing lifestyle is all about managing your debt levels. It is about creating a debt elimination plan that will eliminate credit card debt. There is good debt and bad debt. Bad debt is debt associated with lifestyle choices. It is where you’re using your income to increase your liabilities. Good debt is debt that is acquired through the purchase of assets, assets that are then invested to produce passive income.
5. Foundation of Your Wealth Cycles
A wealth cycle is a process whereby you are paying yourself first before paying anyone and anything else. This ensures that money is being allocated to your asset column. It is something that is ongoing and the purchasing of assets does not just happen once. A wealth cycle also includes an understanding of entity structuring for the purpose of protection and tax. You must also make a decision about the type of investor you are whether you are active or passive. You must also develop some money rules and stick to them.
6. Acceleration fo Your Wealth Cycles
This is all about education. You must educate yourself in the areas you want to invest whether it be stocks and shares or real estate or international securities or commodoties or collectibles. Seek mentors and coaches that specialise in those areas of wealth creation.
7. Leadership of Your Wealth Team
No-one creates wealth without a team around them. No more ‘Lone Ranger’ you must surround yourself with team. Leadership of you wealth team is one of the most under-discussed areas of leading your wealth. Make no mistake, you are the leader of your wealth team, whether you realise it or not. Your job is to inspire, motivate, hold and communicate the vision to all of those on your team.
8. Creating Sustainable Action
Keep taking action each and every day. You must every night right out a list of revenue producing activities. You must work towards your Financial Freedom Day, every day. Even if they are small action steps it does not matter.
Expand your knowledge in these 8 fundamental steps through education, mentoring, coaching and acquiring specialised knowledge and it won’t take you long at all to achieve levels of wealth you never thought was possible.

admin Uncategorized Building Wealth, Finance, Financial Freedom, Financial Literacy, Freedom Day, Wealth, Wealth Building