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Dreaming of financial freedom? Wondering if there’s a simple formula for wealth creation?
Here are six simple steps to achieving true financial abundance and prosperity from self-made millionaires. I’ve collated tips and tricks from books, podcasts and resources for this article.
Important Side Note:
If you’re in debt, I highly recommend reading Dave Ramsey’s book ‘The Total Money Makeover’ which you can check out here. It has helped MILLIONS of people climb their way out of debt and achieve financial security quickly.
He also has another great book called The Legacy Journey. Check it out here!
1. Adopt the Millionaire Mindset
‘Relying on something greater than what we feel in the present moment’. In other words, living beyond our fears and worries and trusting that whatever happens success is eventually inevitable.
Another key point to make here is that if you view yourself as poor, you will be consciously making decisions based on that belief. Knowing your worth and what you have to offer is a key factor in the millionaire mindset.
And we’re not just talking about being ‘positive’ here, because let’s face it, that rarely works.
We’re talking about being able to see the big picture and take a leap of faith when push comes to shove.
2. Set Clear Financial Goals
Write down your financial target income. Be specific. Unless you have a measurable, specific goal, you’ll never be able to reach it. How can you know what to aim for when you haven’t even got a starting goal?
3. Create a Financial Plan
Now you have specific income targets you want to achieve, it’s time to create a financial plan to achieve those goals.
If your goal is to triple your income to $15,000 a month, you must have a concrete plan as to how you will increase your primary income stream and the number and type of additional income streams you can add on.
4. Increase your income and diversify your income streams
After creating your plan, you may initially feel disheartened as though it’s impossible to achieve. You might look at your current income and savings and realise it’s going to take you years to get to your target figure.
This is where you learn how to turbo-charge your income and diversify your streams of income. The average millionaire has seven streams of income, some of which are passive. This might include a side hustle, an online business, affiliate marketing, real estate, freelancing etc.
5. Reduce Expenses
There are people who earn $3,000 a month and are broke, and there are people who earn $30,000 a month and are still broke. Factoring in expenses and cutting unnecessary expenditure is crucial when creating your financial plan.
Evaluate between your needs and your wants! Monitor yourself and understand what your actual needs are and what is just a desire.
This is one of the quickest ways to save money. You just simply ask yourself one question. Do I NEED this or do I WANT this?
6. Develop a daily routine that focuses on the most crucial, yield producing tasks
Is your daily to-do list full of tasks that aren’t going to move your financial needle? Rearrange and prioritise. Get the most important, crucial tasks done first.
This way you will see results faster, and develop a productive routine that will serve you well into the future.