7 Simples Steps to Financial Freedom and Wealth Building -
By William Tan
STEP 1: Make up Your Mind and Setting Your Goals
The first step to any form of planning is to determine your objectives and to set your goals. Although it's the easiest to do, most people do not do it. So, in this case, please take a piece of paper and write down your financial objectives and goals.
Keep it sweet and simple. And constantly refer back to remind yourself of the goals that you have set. Trust me - you will forget your objectives and sway off course if you do not have your goals documented.
Decide on what you would like to achieve financially; develop a plan to achieve it; stick to it to make sure that you stay on track with your objectives. Put your mind, soul, and determination to achieving these goals and you will arrive in time.
Your goals should contain:
- Your Targeted Net Worth
- Your Targeted Monthly Residual Income
- Your Starting Capital
- The time (in years and months) to achieve these goals
- How much time per day would you allocate to achieve the above goals?
For starting capital, it's best to only use risk capital because when you are using your live savings to achieve this, you would normally be too fearful to lose, that is when you make emotional, instead of rational, decisions. As we know, in any business, emotional decisions will, most of the time, turn to bad decisions. We are talking about your financial future - so please make only rational decisions - consider all possibilities when things don't go your way.
Now that we have decided on your goals and your starting capital to achieve these objectives, we are now ready for Step 2 - Achieving Financial Freedom.
CASHFLOW AVENUE is established to provide Low-Risk Options Trading Recommendations to the common traders in their pursuit of financial freedom and a better lifestyle. http://www.cashflowavenue.com
STEP 2: Achieve Financial Freedom – Choosing Your Escape Vehicle
Do you want to achieve financial freedom? For most people, this is constantly on their mind. If you are reading CashFlow Avenue’s 7 Simple Steps to Financial Freedom and Wealth Building, chances you are looking for ways to get out of the rat race and to achieve financial freedom. Unfortunately, it isn't always as easy as it sounds.
With your Financial Goals firmly defined in Step 1, you would now have to choose your “escape” investment vehicle. There are plenty of investment vehicles in the world. Let’s name a few most common form of investment – fixed deposits, gold, bonds, real estate, stocks, stock options, mutual funds, starting a business on your own, etc.
From experience, you might probably be able to tell that every one of the above contains risk, except for fixed deposits. Profit, simply defined, is your reward for placing taking risk on your assets.
On surface, fixed deposits, look the safest form of investment but are probably the most risky because inflation rates are consistently higher that what the bank would pay you – slowly eating away your purchasing power in years to come. So, in truth, while your bank account is growing in numbers, you are actually becoming poorer. If there is no inflation (which will never happen in the long run), fixed deposits are still not the best escape vehicle because it takes just too long to appreciate. Who would want to wait 30 years before they can be rich?
Without getting involved into too much detail, let’s jump straight into action. When choosing an escape vehicle, you probably would want to set a few criterions to screen out what will and will not work for you. The ideal escape vehicle or business should provide:
Liquidity – allows you to cash out within a few days.
Leverage on Your Capital – using only your capital can be slow. Select a vehicle that provides leverage that magnifies only returns but not losses.
Fast Results – should see return on investment within the 1 st month.
Easy to Set Up – should take no longer than 1 month to start.
Predictable Monthly Return on Investment (ROI) – be able to forecast accurately your monthly
Low Risk – consistent and provides a high percentage for success
Profit with Time – with each tick of the clock, you should be making money.
Utilizes The Power of Compound Interest – snowball your returns to accelerate your wealth building process.
After running these criterions over the choices of investment available, most vehicles don’t make the cut. Of all, only 2 investment vehicles would make the cut.
Stay tuned for Step 3 for the Best Escape Vehicle.
CASHFLOW AVENUE is established to provide Low-Risk Options Trading Recommendations to the common traders in their pursuit of financial freedom and a better lifestyle. http://www.cashflowavenue.com
By William Tan
STEP 1: Make up Your Mind and Setting Your Goals
The first step to any form of planning is to determine your objectives and to set your goals. Although it's the easiest to do, most people do not do it. So, in this case, please take a piece of paper and write down your financial objectives and goals.
Keep it sweet and simple. And constantly refer back to remind yourself of the goals that you have set. Trust me - you will forget your objectives and sway off course if you do not have your goals documented.
Decide on what you would like to achieve financially; develop a plan to achieve it; stick to it to make sure that you stay on track with your objectives. Put your mind, soul, and determination to achieving these goals and you will arrive in time.
Your goals should contain:
- Your Targeted Net Worth
- Your Targeted Monthly Residual Income
- Your Starting Capital
- The time (in years and months) to achieve these goals
- How much time per day would you allocate to achieve the above goals?
For starting capital, it's best to only use risk capital because when you are using your live savings to achieve this, you would normally be too fearful to lose, that is when you make emotional, instead of rational, decisions. As we know, in any business, emotional decisions will, most of the time, turn to bad decisions. We are talking about your financial future - so please make only rational decisions - consider all possibilities when things don't go your way.
Now that we have decided on your goals and your starting capital to achieve these objectives, we are now ready for Step 2 - Achieving Financial Freedom.
CASHFLOW AVENUE is established to provide Low-Risk Options Trading Recommendations to the common traders in their pursuit of financial freedom and a better lifestyle. http://www.cashflowavenue.com
STEP 2: Achieve Financial Freedom – Choosing Your Escape Vehicle
Do you want to achieve financial freedom? For most people, this is constantly on their mind. If you are reading CashFlow Avenue’s 7 Simple Steps to Financial Freedom and Wealth Building, chances you are looking for ways to get out of the rat race and to achieve financial freedom. Unfortunately, it isn't always as easy as it sounds.
With your Financial Goals firmly defined in Step 1, you would now have to choose your “escape” investment vehicle. There are plenty of investment vehicles in the world. Let’s name a few most common form of investment – fixed deposits, gold, bonds, real estate, stocks, stock options, mutual funds, starting a business on your own, etc.
From experience, you might probably be able to tell that every one of the above contains risk, except for fixed deposits. Profit, simply defined, is your reward for placing taking risk on your assets.
On surface, fixed deposits, look the safest form of investment but are probably the most risky because inflation rates are consistently higher that what the bank would pay you – slowly eating away your purchasing power in years to come. So, in truth, while your bank account is growing in numbers, you are actually becoming poorer. If there is no inflation (which will never happen in the long run), fixed deposits are still not the best escape vehicle because it takes just too long to appreciate. Who would want to wait 30 years before they can be rich?
Without getting involved into too much detail, let’s jump straight into action. When choosing an escape vehicle, you probably would want to set a few criterions to screen out what will and will not work for you. The ideal escape vehicle or business should provide:
Liquidity – allows you to cash out within a few days.
Leverage on Your Capital – using only your capital can be slow. Select a vehicle that provides leverage that magnifies only returns but not losses.
Fast Results – should see return on investment within the 1 st month.
Easy to Set Up – should take no longer than 1 month to start.
Predictable Monthly Return on Investment (ROI) – be able to forecast accurately your monthly
Low Risk – consistent and provides a high percentage for success
Profit with Time – with each tick of the clock, you should be making money.
Utilizes The Power of Compound Interest – snowball your returns to accelerate your wealth building process.
After running these criterions over the choices of investment available, most vehicles don’t make the cut. Of all, only 2 investment vehicles would make the cut.
Stay tuned for Step 3 for the Best Escape Vehicle.
CASHFLOW AVENUE is established to provide Low-Risk Options Trading Recommendations to the common traders in their pursuit of financial freedom and a better lifestyle. http://www.cashflowavenue.com
posted by Ryan Mercer at 5:50 AM
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