Financial or income freedom is the ultimate outcome of wealth creation. For three main reasons, though, a mere one percent actually succeeds at this.
A) Lack of purpose
Wealth creation takes quite a bit of hard work. It is very important to have a clear purpose in mind. The only ways to get rich quick are to win the state lottery or inherit a fortune: two unlikely events.
Not having a purpose in life, financial success for you is unlikely and cumbersome because substance and meaning are missing.
Why are you looking to become wealthy? What is your perception of financial independence? It's vital that you answer these questions carefully because wealth creation will involve a lot of your time, effort and conscientiousness.
Start sorting out all of your ideas on paper. Choose and memorize the reasons that are most meaningful to you. Verbalize them daily and picture yourself being successful.
Wealth creation must never be undertaken merely for the sake of social status.
You may not realize that money is actually only a small part of the journey. Money actually comes naturally when your life has a fulfilling purpose.
Having sufficient passive income is about freedom, freedom to spend the time you wish with your family, freedom to provide well for your children and freedom to live your life any way you wish.
What would make you leap out of bed with energy every day? That's your passion, and the first thing you should do is try and identify what it is.
B) Absence of Financial Literacy
Financial success depends upon financial literacy, which means that you need a basic understanding of wealth creation principles.
Forget about blindly delegating your financial decisions to an agent such as an asset manager, financial planner or broker.
You have to be in control of the entire process, instead of financial professionals telling you what to do with your money. That's not to say you cannot use an expert for assistance. It's about you dictating strategy and high level decision-making. View it like this: You are the CEO as well as CFO of your income.
How can you start? You need to learn everything you can about the three areas that comprise financial knowledge.
The first thing you must do is learn about generating extra cash or surplus income that you can invest into business start-ups. Secondly, you must select your assets and your strategy. Thirdly, you must focus on developing a business that will provide you with passive income.
C) Absence of business planning
Attaining income freedom is usually challenging. You must chart a course of measurable objectives and goals that will carry you far into the future.
It is not necessary that you invent something completely new or come up with a revolutionary new technology to attain financial freedom, unless that is your plan.
You can create wealth easily by constructing business plans around strategies already in place.
Property, for instance, is generally viewed as an investment similar to investing in the stock market. How about turning a property that you own into a business? Picture yourself possessing fifty properties, each giving you $800 in rent per month. That equals $40,000 in work-free income monthly.
Let's also look at information marketing. Just think how great it would be to be able to sell your knowledge, skills and abilities as well as your story online without ever really pushing anyone to buy! Although online businesses have been around for a while now, they still require careful business planning.
If financial freedom is not a priority for you, your best bet would be to put down your extra money on an investment instrument such as a mutual fund or retirement annuity.
Things to remember:
1. Wealth creation is a lesson in progress requiring your active participation. 2. You can attain financial freedom by constructing a source of passive income capable of supporting the lifestyle you want.
A) Lack of purpose
Wealth creation takes quite a bit of hard work. It is very important to have a clear purpose in mind. The only ways to get rich quick are to win the state lottery or inherit a fortune: two unlikely events.
Not having a purpose in life, financial success for you is unlikely and cumbersome because substance and meaning are missing.
Why are you looking to become wealthy? What is your perception of financial independence? It's vital that you answer these questions carefully because wealth creation will involve a lot of your time, effort and conscientiousness.
Start sorting out all of your ideas on paper. Choose and memorize the reasons that are most meaningful to you. Verbalize them daily and picture yourself being successful.
Wealth creation must never be undertaken merely for the sake of social status.
You may not realize that money is actually only a small part of the journey. Money actually comes naturally when your life has a fulfilling purpose.
Having sufficient passive income is about freedom, freedom to spend the time you wish with your family, freedom to provide well for your children and freedom to live your life any way you wish.
What would make you leap out of bed with energy every day? That's your passion, and the first thing you should do is try and identify what it is.
B) Absence of Financial Literacy
Financial success depends upon financial literacy, which means that you need a basic understanding of wealth creation principles.
Forget about blindly delegating your financial decisions to an agent such as an asset manager, financial planner or broker.
You have to be in control of the entire process, instead of financial professionals telling you what to do with your money. That's not to say you cannot use an expert for assistance. It's about you dictating strategy and high level decision-making. View it like this: You are the CEO as well as CFO of your income.
How can you start? You need to learn everything you can about the three areas that comprise financial knowledge.
The first thing you must do is learn about generating extra cash or surplus income that you can invest into business start-ups. Secondly, you must select your assets and your strategy. Thirdly, you must focus on developing a business that will provide you with passive income.
C) Absence of business planning
Attaining income freedom is usually challenging. You must chart a course of measurable objectives and goals that will carry you far into the future.
It is not necessary that you invent something completely new or come up with a revolutionary new technology to attain financial freedom, unless that is your plan.
You can create wealth easily by constructing business plans around strategies already in place.
Property, for instance, is generally viewed as an investment similar to investing in the stock market. How about turning a property that you own into a business? Picture yourself possessing fifty properties, each giving you $800 in rent per month. That equals $40,000 in work-free income monthly.
Let's also look at information marketing. Just think how great it would be to be able to sell your knowledge, skills and abilities as well as your story online without ever really pushing anyone to buy! Although online businesses have been around for a while now, they still require careful business planning.
If financial freedom is not a priority for you, your best bet would be to put down your extra money on an investment instrument such as a mutual fund or retirement annuity.
Things to remember:
1. Wealth creation is a lesson in progress requiring your active participation. 2. You can attain financial freedom by constructing a source of passive income capable of supporting the lifestyle you want.
About the Author:
And finally, if you want to find out more about wealth creation strategies, visit squidoo.com/way-to-wealth. To understand more about what it takes to create a reliable passive income stream, have a look at the ultimate 3-step financial success plan.
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