7 Proven Steps To Improve Your Financial Life
Money is commodity considered by many to be as important as oxygen. It is important to remember money is not everything in life, but having it certainly makes life easier than not having it. Humans unhealthy relationship with money can also be seen in gambling, drug trafficking, robberies and other crimes, all related to the seeking significance through gaining of more money. Because of the negative side of money, those without it sometimes point to money as being “evil” – of course this is not the case. Just as there are people doing negative things for money, there are just as many doing amazing things for others. The good we can do with money is shown by great philanthropists like Bill Gates, Warren Buffett & Oprah Winfrey, to name only a few.
Money can be used as an incentive to change your social status and importance (through material things) or used as an incentive to change the world, to change the lives of others outside of yourself (much more positive, powerful reason to gain wealth)
We can create more money if we model those before us who have created wealth, learn more, work smarter, invest smarter and eliminate procrastination. Here are 7 Proven Steps To Improve Your Financial Life:
1 – The 80/20 Rule
The Pareto Principle states: Only 20 percent of your activities will almost always bring in 80 percent of our results (or, in this case, our income). We must analyze how we’ve been spending our time and eliminate activities that will not move our life forward. Take this short exercise: Write down ten of your regular activities each day, rate them on scale 1-10, 1 being the most important and 10 the least important. You’ll discover five of them will rate less than half in terms of money and happiness. If you eliminate activities that scale low, you’ve simply added more value to your life with the 80/20 rule.
2 – The Principle Of Compounding
The principle of compounding is the addition of interest you gain when you invest your money and keep it there or re-invest it. Essentially you earn interest on interest. Hundreds of dollars invested today can bring tens of thousands of dollars in twenty years, providing you leave the original principal and continue to add to it. Investment must be done with discipline and dedication because it will involve eliminating unnecessary spending. I recommend reading Tony Robbins book Money Master The Game to LEARN the principles of money and compound interest.
3 – Avoid Procrastination
Most people procrastinate and avoid taking action to ensure their financial security and abundance. Do not be like most people. Make a start. Once you get going you will get momentum. Once you have momentum you will have excitement and you won’t be able to stop. Write down 3 action steps you can take RIGHT NOW to learn new skills which will ensure a better financial future for you and your family.
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4 – Overcome Fear
Fear kills, some great ideas which could have led to big things have been killed through fear. Questions like: Will it work out? Will I fail? These doubts have killed many dreams. It is interesting that if you fail you’re not alone, Edison famously failed 10,000 times before he succeeded.
5 – Avoid Greed
Many people have fallen into the greed pit, the dark whole of doing anything for a dollar. Addictions like gambling show us the greed for money and to some, no matter how much they have, it will never be enough. Be grateful for what you do have, work towards what you deserve, and give back everything you don’t need.
6 – Live A Balanced Life
Vain search for money has led some to lose their loved ones and miss out on great health and beautiful relationships. The irony is, when you don’t value money over the things that SHOULD always matter more, like family, relationships, health and happiness – you tend to create more money. When you are free from the STRESS and care of needing to make money, money is easier to make. Why? Because it is always STRESS that holds us back from our true potential. When you don’t place such a high value on money, you are more present and free to create better, do a better job, think better and make better decisions.
7 – Learn Necessary Skills
Warren Buffett is famous for reading 6 hours every single day. Almost every wealthy human, I am sure you will find is obsessed with learning more, even when they are at the very top. Commit to learning like the wealthiest people on the planet, and you will improve your financial life. One day, maybe you will be one of them.
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