Steps to achieve financial excellence
1) Live on less than you earn. You have to live on less than you earn in able to have something for your personal financial empire. You may have to miss going out some nights and to different places for awhile but at some point, things will change and you’ll be able to do all the things you didn’t do and you ‘ll be able to do them on a much grander way.
2) Save Money – You have to save before you invest and when you do you show that you can delay gratification. It’s shows your’e disciplined and this ability to delay gratification is required to achieve financial excellence and maintain it. By saving the money, you’ll be able to take advantage of deals when they present themselves. Live below your means.
The rich get richer because they can access cash.. So if you can save, though it will be hard and your friends may laugh, the next time the markets presents opportunities you too will be able to take advantage of the deals you see. Though cash is no longer king, access to cash is required to build your personal financial foundation. Keep your credit good and make sure all credit tradelines are reporting correctly. Do know that it does take longer to build up your cash reserves than it does to multiply them. So save your cash then you can celebrate after you make some wise investments.
3) Multiply Your Money – Invest some of that money you have saved. You can use your money and buy real estate, buy a business, reinvest in your business. Only invest in things you know about. Don’t take chances investing on things you don’t understand. A couple mistakes could wipe out your foundation. If you save before you take the big swings trying to multiply your money, then if do you have mishaps it allows you to still be in condition to move on. You can’t focus more on multiplying your money than you do on saving it.
4) Invest, but only invest in things you understand. If you need to consult with a professional please do so before you make an investment. Sticking to the principle of only investing in things you understand can keep you from taking the losses that others have taken that haven’t adhered to this simple but extremely powerful principle. So remember only invest in things you know about, if you understand something you’re interested in investing in consult a professional or two.
5) Compound Interest on Your Money – Compounding of your money happens naturally after you been in the multiplication faze long enough. Compounding is a by product of being in the multiplication stage. This is where true wealth is. Now you have time to do things you really care about. You’ll now have assets that are working for you. At this point many will say that you have reached your desired goal and have attained financial excellence.
I hope this helps someone while travelling on their personal road to riches and financial excellence.