At some point in our life we may have asked ourselves on how we attain financial goals. Many questions like this still linger up to this day especially from those seeking freedom from debt and poverty. Let’s break down how successful people do things to achieve financial success.
STEP 1: Estimate Your Future Finances
The first step is to estimate your future finances. For instance, how much money do you think you need to earn within the next five years? What about ten years? And why exactly do you need that kind of money?
Let’s say for instance you’re earning $50,000 a year but you know that you can do a lot better than that. When you estimate how much you want to earn in a yearly basis, you’re gonna have to factor in your cost of living. How much mortgage or rent do you have to pay every month? What is the charge of your vehicles? What kind of bills you have to pay? Any other debts that you need to cover? What other expenditures do you need to partake in in order to live the kind of lifestyle that you want?
To live once you begin to determine what you want financially, then your mind will start to work toward those results. So, for instance, if you say that you want a hundred thousand dollars a year then your mind will start to work and gravitate toward those numbers. It will begin to fathom and understand what exactly you need to do in order to reach that financial goal.
STEP 2: Understand Your Potential
The second step is to understand your potential. What exactly can you do that no one else can do? What kind of gifts and talents and skills and abilities are you uniquely endowed with by your Creator that’s allowed you to become the person that you are today? How can you use those abilities to get to where you want to be in the future?
Now you have to understand exactly what your potential is. Do you have the kind of skills necessary to become that kind of person? Do you have that kind of potential? So are you a leader or you a follower? Sometimes followers can make more money than leaders. But most of the time leaders make more money than followers.
You have to figure out exactly where you are in your life and where you stand in the world and once you understand your potential then financial success will come to your way. When it comes to factoring your potential you have to be realistic with yourself. If you’re in your 80s and your 90s, I’m not saying that you can’t do anything with your life, but you’re probably not going to have as much time as you would if you were in your 20s or your 30s. For instance, let’s say you’re a housewife and you decide that you’re going to be dedicated to your husband and your family and so you’re not going to pursue big financial goals for yourself. Well, it’s your job to figure out what your husband can do and do everything you can to help him to reach those financial goals.
Now when it comes to estimating your potential, you cannot underrate or overrate yourself. There’s a lot of people who underrate themselves and they talk themselves out of success. They don’t believe they’re good enough or that they’re smart enough or that they’re tall enough or that they’re the right skin color or that they’re the right sex or whatever it is. You have to understand that you have every single resource necessary for you to achieve the kind of financial desire that you’ve aspired for since the beginning.
Now if you’re overrating yourself and you think you can conquer the world or become the next president or become a trillionaire in the next year or two then that’s probably not gonna happen if you haven’t done any work leading up to that. So you have to be fair in the estimation of yourself and your potential.
STEP #3: Look For Your Industry
The third step is to look for your industry. What kind of industry will pay the price that you’ve been asking for? For instance, there’s a lot of humanitarian people out there in the world but they want to partake in non-profit activities that pay them far below what they want to earn. Now a lot of people resort to the answer, “Well, I don’t do it for the money”. Well, then what do you do it for? Of course, you do it for the purpose, but you need money in order to fulfill your purpose. So you have to factor in money and find the industry that can help you supplement the kind of income that you want to.
Figure out if this industry can use your skills, your abilities, your gifts, and if they can, then ask yourself, “Is this something I could dedicate my whole life to? Can I spend the next 50 years doing everything I can to mastering my niche and becoming the person that I want to be so I can reach my financial goal?”.
STEP #4: Get Started
The fourth step is to get started. There’s a lot of people who are where they are right now but they don’t believe that they’re in the right situation. That’s a problem. The other day I was at the gym and I remember talking to a guy who was just a janitor several weeks ago. As we got into a conversation he told me that he was now in sales and soon enough he was planning to run the whole gym. Now I can see it because he had a vision in his mind and he believes that he can accomplish this goal. I thought to myself, wow, you give this guy less than a year and he will be running this gym pretty soon. Now just imagine how did a guy goes from making $9 an hour as a janitor to doubling his income and potentially even quadrupling it once he starts to run the place. And the key is just to get started. Get started with where you are. Begin to ask questions. Begin to look for opportunities. Begin to do everything you can to become the best at what you do.
STEP #5: Increase Your Value
The fifth step to reaching your financial goal is to increase your value. Remember if you do more than you’re paid to do, you’ll get paid more than you do. If you double your productivity you’re going to double your income. If someone doesn’t recognize you on the job eventually someone will. Opportunities will start to flood your path and you will begin to see greater versions of yourself. As you refine your character and become better at what you do. Even in your current role, constantly educate yourself. Know more about the job than anyone else. Even if you’re not as good as the other guy or the other girl, do the best you can to become the best that you are.
What naturally happens when you increase your value is that you increase your income. Now if you just got started and you’re making little changes and you realize that changes but no one else does. It doesn’t mean you’re not getting a raise. It means that you need to keep on working, you need to keep on progressing, you need to keep on developing your character so that you can continue to grow in every way you can.
STEP #6: Save & Invest
The sixth step to reaching your financial goal is to save and invest. Whenever you earn money to try to pocket at least 25% of all that you earn. The key to becoming wealthy is to take the savings that you have and pour it back into yourself. If you can, so for instance, let’s say you made a thousand dollars out of that one thousand dollars you take $250 and you pour it back into books, into conferences, into coaching, into business equipment, into your website. Whatever it is that you need in order to enlarge your assets, in order to gain more wealth as you keep on pouring money into yourself, into your career, into your business.
What you’ll begin to notice is that it will pay off. You will bypass your contemporaries and you will be able to do things that you just never thought that you can do.
Let me give you a clear example when I first started, my business wasn’t making that much money at all. But what I decided to do was to take the money I have and I took every single dollar and I poured it back into myself. I went to a bookstore and I saw a book for five or $10 or $20 I would buy it. If I saw a conference for a hundred bucks I would go to it. If I saw any opportunity to pour it back into myself I did it and you know what they paid off.
STEP #7: Upgrade Your Lifestyle
The seventh and final step is to move up. There’s a lot of people who make financial strides and they might be making more money. But they never firmly decide to move up. They never buy nicer things. They never move up to a bigger and better house. They never take care of themselves and treat themselves like the royalty that they are.
What I’m basically saying here is to upgrade your lifestyle. Get around better people, places, and things, so that not only you feel good about yourself but other people feel good about you and trust you and continue to pay you for your efforts.