Financial success is one of the major goals we all have in common, mostly because money is essential for living. Regardless of our sincere desires, only a small percentage of people achieve financial success. Every year, a countless number of people write down their financial goals with hopes that they will achieve it. But only a few get to achieve it. What I find, most times, is that financial success is difficult for most people. There are two reasons why: first is the difficulty that comes from growth – success requires growth; second is the difficulty that comes from ignorance – ignorance leads to pain.
To improve your chances of achieving financial success, you must eliminate the pain of ignorance and embrace the pain of growth. To achieve financial success, you must follow a standard proven formula. This formula has been proven to work over the years, regardless of your race, background, or tribe. This formula applies not only to financial goals but to any kind of goal you want to achieve. It comprises six basic steps that a person must take to achieve their goals.
To understand these six steps and how you can use them to achieve your goals, let’s look at this example:
The Goal of Building a Residential House
To build a residential home, a person must first decide they want to build their own residential home and have a strong reason that fuels that desire. Secondly, they must research about building a home. Third, they must define the principle that will govern the type of home they want to build so they do not end up with the wrong home. Fourth, they must grow their savings or take a loan if that’s the option they want to explore. Fifth, they must identify a team of experts that have the expertise they do not have and can deliver on the project. Sixth, they must start building, set measurable criteria, and timeline. Then they have to track and review progress until the house is complete. It is the same formula that applies to a weight-loss goal.
The Goal of Losing Weight
A weight loss goal follows the exact same process. First, there is the decision to lose weight and a strong reason that fuels that decision. Second, there is a need to grow to a new level of knowledge about weight-loss, through research and learning. Third, there is a clear principle that governs losing weight for a particular body type and size. Fourth, you need to invest in a gym and buy exercise equipment. The fifth is the collaboration with a team of experts that are competent in weight loss – in this case, coaches and nutritional experts. Sixth, taking timely action: going to the gym, eating right, and measuring progress. This six-step process follows the exact same order every time.
Why Financial Success is Hard for Most People
When it comes to financial success, most people invent a new formula. They invent formulas like ‘pray and wait for a miracle’. Gamble and hope to be lucky. Work hard, earn more income, and save leftovers. Follow the crowd, invest like them, and hope to be rich. People completely relegate a proven formula for a formula that is destined to fail. When their formula fails, they abdicate responsibility to God. They blame the country and their employers. And they hope to be lucky someday. They simply expect to get the right result from the wrong formula. Unfortunately, life does not happen this way. To achieve financial success, you must follow the standard formula. You must take 100% responsibility for your life and act on a proven strategy.
Where Can You Begin?
Understand Your ‘Why’
The first thing to do is to understand why you want to achieve financial success. Why is financial success important to you? What will happen if you do not achieve it? What price will it take to achieve it? These questions are important because they create the inner drive that pushes you towards success. Without a strong reason, you will fall by the wayside. Reasons drive actions and actions drive results.
Know Your Current Order of Priority
Knowing your current order of priority is important because it shows you which goals you are prioritizing per time. To understand your current priorities, you need to review your 12-months salary account statement. The top five items that consume your money each month is where your priority lies. Confirm if these items make you save more or spend more. Items that make you spend more lead to financial bondage. But items that make you save more lead to financial success. To achieve financial success, you need to eliminate, delay, cut-down, or postpone certain items on your expense list. Without this first critical step, nothing else matters. Goals that are given high financial importance will be achieved no matter how hard they get. Goals that are given low financial importance will get excuses no matter how easy they get.
Give Big Portion Savings a Chance
Savings is the decisive factor in achieving financial success because it is the only money that goes inward and enriches you. Without savings, financial success is not possible. But not all savings lead to financial freedom. There are two kinds of savings in the world. The first is the leftover savings – a situation where you spend more than you save. The second is the big portion savings – where you save more than you spend. The amount of money you save is critical to how fast you achieve financial success. People that love themselves invest a major part of their income towards their freedom. They create financial security that gives them the ability to live a better life. All others give away a major part of their income and suffer at the end of their career.
Choose Investments That Lead to Financial Independence
An essential thing you must do after you have saved is to invest in vehicles that work for freedom. There are three kinds of investment vehicles. The first is the investment vehicle that yields high returns and can burn up your savings in the process. High return-focused investing is a great choice when you have built a solid net-worth. The second is the investment vehicle that leads to high growth and can give you consistent and safe returns. This is a great choice when you are trying to build a solid network. The third is the investment vehicle that leads to financial independence, security, and stability. This is a great choice when you are just starting out and when you are not yet at the point where you can fund your life from a passive income.
The Big Question
Do you still have some pending financial goals? Do your pending goals include things like achieving financial independence, living on a life funded by a passive rather than an active income, planning for retirement, or even starting your own business. Then it’s high time you knocked out your financial goals using this financial goal formula.