There are several things you can do that will change your financial life forever. But before you take the steps to change your finances, you’ve to work on your mind.
Many books has been written on this subject. There is power in your mind. So, if you think you can change your financial life, then you can.
It’s as simple as that.
Once you come to the realization that the power to change your financial life is in your hands, following these steps becomes easy.
I wouldn’t go on giving you an advice off the internet. I’ll tell you what I’ve gone through, and what I’m doing at the moment.
I’ve always believed that I’m the only one who can change my finances. It doesn’t matter if I work alone or work with others. That believe system is what has kept me going on even when things don’t work out as planned.
These are the four levels of instructions that will change your financial life forever.
#1. Take charge of your personal finances
This is the basis of financial education. If you can meet your personal finances and basic needs, then it becomes easier to follow through the other levels.
It’s very simple to do this. But it requires great discipline, commitment, and dedication. Here are some practical tips to help you get started.
– Keep your debt levels at zero. Don’t buy what you can’t afford. Don’t borrow money to impress anyone. Nobody cares about you. I found this out the hard way.
– Live frugal below your means. Spend only 10 percent or 20 percent of your income if you can. This doesn’t apply to everyone but it can be done. Set a goal with a time limit. This will help you to be committed and keep you disciplined.
– Use part of your savings to acquire useful skills and invest in yourself. That’s the whole point of saving up in the first place. You need to use your savings to invest in yourself. Invest in skills that you can scale up to boost your income.
#2. Learn the right skills and education
Don’t confuse this with schooling. You need skills. Practical skills. Life skills. Money making skills. Your skills are yours to keep forever.
These skills will keep your confidence levels high even when things are not going your way.
The key is to choose a skill set that you love and learn it with high intensity. Find a skill that comes to you naturally so that you can learn it without feeling that you are been forced to learn. This is help you learn effortlessly.
Your goal is to have a skill set that will change your financial life for the better. You need a way to validate your skill set in the market. Your skills should be able to fill a need or solve a problem that people will readily pay for. Look for a market, and solve their problem.
Some examples of practical skills you can start learning now are programming, graphics designs, web development, photography, digital marketing, music, etc.
Pick a skill that you love. Learn it. Master it. And sell yourself to the market.
#3. Passive income a.k.a side hustle
Nothing gives me more joy than the ability to earn passive income on the side. Imagine having a system in place that requires little time to manage and still bring you good returns.
Some people call this investment. I call this freedom. Some people have turned their passive income into their main source of income because it’s that good.
Passive income only works well when you have a main income which is your active income. It is meant to supplement your income.
This means that you already have an active income which you’re comfortable with. In most cases, this should be above your country’s gross domestic product (GDP) per capita. It’s this money that will work for you to achieve your passive income.
This might take time to master if you want to go the do-it-yourself way. Another way to do this is by hiring an expert or professional to help you out and offer them a certain percentage of the profits.
#4. Multiple sources of income and growth
This is an iteration of level one to three. You find a system that works, repeat it, and scale it up.
This is real business. You need business skills to help you manage your finances. At this stage, you’ll delegate your skills to others while you focus on managing the business.
This can be risky. You wouldn’t want to come off as been greedy or insensitive. You need to make sure the incentives you offer your team is enough to motivate them to work with you.
This stage is not meant for everyone but it’s worth it.
When you painstakingly follow through this process, it’s impossible not to change your financial life and be wealthy.
It’s a long process but it’s worth it.
In summary, to change your financial life, you must make a budget of how you spend your money and save.
Start investing in yourself. This is the only way to grow your pocket. The law of compound interest is king.
Then, work hard to become an expert in a skill that is marketable and in demand.
Finally, rinse and repeat.
The Editorial Staff at Ideas Plus Business is team of brand strategist, digital marketers, entrepreneurs and consultants led by Adeyemi Adetilewa.