FINDING YOUR PATH TO FINANCIAL FREEDOM
One of the people who influenced me the most in my quest towards seeking knowledge about wealth creation and financial freedom is Robert Kiyosaki.
Robert Kiyosaki is the author of Rich dad, poor dad (the highest selling finance book of all time, with estimated sales of about 40million copies, and has been translated in about 51 languages and published in 109 countries. It was also in the U.S. bestselling book list for over 7years). He has also co- written 2 books with Donald Trump (United States President) which are ;
Why we want you to be rich, two men, one message in 2006, and Midas touch, why some entrepreneurs get rich, and why most don’t in 2011.
The irony of his success story is that at the time Rich dad, poor dad was written, every single publisher he approached to help publish the book turned him down, claiming the teachings of the book were wrong and it will be a failure. He eventually decided to publish the book himself, and the rest is history.
In one of his books, The Cash flow quadrant, there is an article there I found very interesting…
“There was a study done a number of years ago of rich and poor people all around the world. The study wanted to find out how people born into poverty eventually became wealthy, and also how people born into families of immense wealth sometimes lose all their fortune. The study found out that in the case of the poor people who wanted to be rich, regardless of which country they lived, possessed 3 qualities:
1) They maintained a long term vision and plan.
2) They believed in delayed gratification.
3) They used the power of compounding in their favor.
The study found out that these people thought & planned for the long term & knew they could achieve financial success by holding on to a dream or a vision. They were also willing to make short term sacrifices to gain long-term success (the basis of delayed gratification). They also used the power of compounding in their favor by taking ‘baby steps’ in their accumulation of knowledge, assets, & experience which magnified significantly over time.
The study also found out what caused people to go from wealthy to poor were the exact opposite of what made people to be rich:
1) They had short term vision
2) They had a desire for instantaneous gratification
3) They abused the power of compounding
Most people seeking great wealth make a fundamental error in their quest, which is They want to know what to do within the shortest possible time to acquire great wealth, instead of finding out who they need to be, in order to do what they need to do to acquire great wealth….in other words, people are fixated on the Get rich quick philosophy of life which most times never comes, or even if it comes, never lasts.”
If you want to be successful in life, you need to have a plan..it’s best you thoughtfully write out this plan, and how you intend to achieve your financial plan towards great wealth. What’s most important is being able to stick to your plan, and not get carried away by setbacks, or distractions, or tales of woe from financial failures who find everything wrong in your dream and quest towards success.
Your financial plan should start first and foremost by changing your mindset, and devising ways and means to make money work for you, rather than continuously working for money. Even if you are a paid employee, start now to devise a plan on how you will start your own business, or begin investing in lucrative investments like real estate, until you feel financially stable to resign and strike out on your own.
Investment is like sowing numerous seeds little by little, watering them and waiting for them to germinate and bear fruit.
By the time they start bearing fruits, they hardly need your full attention anymore, because their roots have already laid a solid foundation deep underground, and they can find water several meters underneath the soil on their own.
Real estate is a sure way of making money work for you, both in terms of regular cash flow (in terms of rental income), as well as capital appreciation from significant rise in value of the land or property you bought a while ago.
Stick to your financial plan, while taking concrete actions towards actualizing your financial goal, which might be a 5 year, or 10 year plan.
Seeking mentors who are already where you want to go, is also a huge step towards your road to financial freedom… not for monetary gains, mind you, but for proper direction on how to get to where you are going. Most of us cling to ideas and advice from parents, relatives or friends who are in the same, if not in worse financial situations than we are in. It’s good to listen to advice, but my point is an advice is obviously better if it’s being given by someone who is already where we are hoping to reach..hence the vital importance of mentors to guide us.
to be continued next week
Jeje Abiodun O.
Certified financial/investment analyst & Real estate consultant.