“Too many people are focused too
much on money and not on their greatest wealth, which is their education. If
people are prepared to be flexible, keep an open mind and learn, they will grow
richer and richer.”_Robert Kiyosaki
For us, financial
independence means we have the ability to cater for our needs. This doesn’t
mean we are the richest people in the town but it means we are no longer a
slave to earning coins.
We work to
earn money, yes, but we love what we do in the process because through our
work, we add exceptional value to the lives of people whom we serve.
And we don’t
engage in anything that doesn’t fully benefit all whom it affects. Financial
independence, for us, means we are in control of our finances and our lives.
This doesn’t
mean we can’t seek help from others in times of emergency, but it means that we
are robust enough to meet our obligations as they fall due. It means we are not
stuck in dead-end circumstances. Independence is not about having excessive
money; it is about having options in fulfilling one’s needs.
In the book,
‘Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money
and Achieving Financial Independence,’ written by Vicki Robin, we are reminded
that financial intelligence is about making smarter choices on how we’re making
and spending our money.
Robin also emphasizes
the importance of financial integrity as an essential element of true financial
mastery. She encourages us to ensure that our financial choices are ethically
sound; that, our choices should also be influenced by virtues rather than mere
monetary gain.
In other
words, we need to be guided by principles and values when it comes to the
business of making and spending our money.
Now, I will highlight
the three proven ideas that we can start using right away to achieve our
financial goals.
{1} Optimize Frugality with a Plan
First of all,
we need to start with a plan. Why? The most prosperous nations operate by
budgets, the most successful companies are guided by plans, and the most
financially savvy people don’t spend on impulse.
You see, in
order to become financially independent, we will need to embrace the mindset of
frugality and launch our journey with a well-devised plan.
The essence
of a plan is to prevent us from getting sidetracked from our goal by the
extravagant lures of life. I believe good personal financial management has a
lot to do with setting, and keeping a budget.
Ingvar Kamprad, the
founder of IKEA even said: “I’m a bit tight with money.” That is to say, he
sticks to his budget. He doesn’t spend money any how even though, he is a
billionaire. What a lesson from someone who is,
without question, a master over loads of cash.
{2} Optimize Frugality with Value
Living below
one’s means and getting real value from every purchase are two of the core
lessons of true prosperity.
We need to
optimize frugality by making sure that, one: we can afford what we desire and,
two: we are getting corresponding value for our money.
Just as
Warren Buffet, a multi-billionaire and the founder of Berkshire Hathaway wisely opined:
“Price is what you pay. Value is what you get.”
By being smart
with every expense and living below our means, we'll be creating extra cash
that can be saved and invested for good returns later. Never forget the old age
which say, ‘a penny saved is a penny earned.’
{3} Optimize Frugality with Growth
In the
previous point, I have reminded you of the importance of living below our means
and being sagacious with our expenditures.
As great as that is, we also want to make sure we are improving our financial
prospects by striving to proactively grow our business or advance our careers.
If we can
combine growth with frugality, we indeed have an unbeatable mix. In this
direction, the inventive Benjamin Franklin gives us his take on successful wealth-building.
He said: “It depends chiefly on two words, industry
and frugality; that is, waste neither time nor money, but make the best
use of both. Without industry and frugality nothing will do, and with them, everything.”
Certainly, we
can increase our earning capacity by working on ourselves to increase our worth
in the marketplace. Self-improvement is one form of investment that can yield a
huge payback in the long run.
When we improve
and get better, so is the service we offer to our customers. And when our
business improves, we improve our chances of reaching our financial goal
quicker. Simply put, better business means more money.
Meanwhile,
know that all the steps outlined above are only a practical means for our goal.
Now, pray to God for His help in becoming financially independent. He is the
source of sustenance for everything.
Without His Grace, nothing can be done. A
single accident can incapacitate the strongest of men. Ultimately, true success is a blessing from
God.
Lastly, by
becoming free from financial slavery, we gain greater capacity to give
something back to the world around us, especial to the people with a desperate
need for help. Be reminded of this whenever things get tough, and you will
weather the storm to come out on top.
