the 7 steps formula to your financial destiny … · 2010-10-26 · “it's not hard to make...
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The 7 Steps Formula To Your Financial Destiny http://theinvestingmindset.com
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The 7 Steps Formula To Your Financial Destiny http://theinvestingmindset.com
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Introduction
Are you living the life of your dreams or are you just getting by?
The sad reality is majority of are just getting by, Many have retirement plans that will not sustain
them in their old age.
I was in the same dilemma, many years ago, as I sat down with my financial adviser. I
wanted to be free of money worries.
I became passionate about achieving financial freedom, because I grew up as a child
from humble background.
My parents were hardworking public servants, who worked to provide for their family,
and planned to retire comfortably. However, there was a flaw to their plan...they trusted
the government retirement plan.
Unfortunately, their plan did not work out. My parent’s retirement and pension benefits
were not enough to cover their needs. As a result, they are suffering, needing financial
help in their old age.
The experience of my parents, who entrusted their financial destiny to others... and
suffered as a result, was a wakeup call for me. I made a decision to do things
differently.
I started to seek answers to my questions about financial freedom. I studied and
observed the rich and successful. By the time I graduated from medical school, I had
some insight into wealth creation.
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I have been able to achieve success as an investor. Moreover, I am still learning to
climb the financial ladder to wealth. The future looks bright.
It is from my experiences that I share these proven steps to wealth. These are the
proven steps to wealth...
I was able to move from earning $1,200 per annum to over $160,000 within 10 years. I
am now on my way to a seven-figure income within the next five years, baring no
adverse personal circumstance. These steps will work regardless of the state of the
economy
Now, I was telling you about my experience with my financial adviser.
I realized she was just a trained salesperson of my bank. She was only interested in
selling me financial products that earned the bank profits, her commission, but left me
holding the bag.
I thanked her, and I tossed the brochure in the bin on my way home.
My experience with my financial adviser is no different from what millions of beginner
investors experience daily. Good folks who ... Dream of financial freedom one day, who
Plan to send their children to college, have more holidays, and spend more time with
their loved ones and those who choose to work as their own boss.
The only problem is... just like me, they are looking for answers in the wrong places.
Let me show you how to find the answers to your dream. Are you ready?
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“It's not hard to make decisions when you know what your values are.”
-Roy Disney
Step 1
Decide on how much money you really want, then write it
down.
Your first step to becoming wealthy is for you decide how much money is enough to live
your dream lifestyle.
Wealth is a product of your net worth; your net worth is your asset minus your debts.
Let me explain.
Imagine you are about to move to a new country. Imagine you need to sell up and raise
money to settle down in the new country. Your asset is the net amount of money you
can get at current market prices for all your property after you have settled all your
outstanding debts.
You are the best person to decide what you want as your net worth.
It is important for you to decide on how much net worth you want. Because when you
have a specific amount, you have clarity about your goals to become wealthy. Another
reason for you to make a decision; you can track your progress and know when you
have achieved your target.
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Here is a rule of thumb; you should estimate your return on investment (ROI) on your
asset at 10 percent. This means for a net worth of $1million, you should be earning
$100,000 as yearly income.
Now you have decided on your net worth. You must write the amount down. You must
write your net worth, as if you already have it.
Let us use our example of the $1 million net worth.
You should write, "I have a net worth of $1million earning me $100,000 in income” You
can see this is different from writing, "I hope to earn $100,000” or "I want to earn
$100000 ".
Writing your goals helps you fix your goals in your subconscious mind. In addition, it
gives more reality to its achievement.
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Step 2
Decide your wealth-building vehicle
You have now decided on how much wealth you need to acquire, you have your dream
lifestyle written. The next thing is you need a vehicle to create your dream net worth.
Let me explain.
Your decision to acquire wealth needs a vehicle to make your dreams a reality...
There are three main vehicles for acquiring wealth; real estate investing; investing in the
stock market and starting a business
These three vehicles are the proven path to wealth. Warren Buffet made his fortune
from investing in the stock market; Bill Gates made his fortune starting Microsoft,
Donald Trump from Real estate, and Michael Dell from starting Dell Computers.
You can see the same pattern in your town, city or state... this is the secret of creating
wealth. These individuals took the entrepreneurial route.
You can start your own wealth building using any of these vehicles.
I want to give a note of caution here...about the myth about becoming an entrepreneur.
Many wealth-building books will have you believe an entrepreneur, is someone who
takes risk by quitting his job, borrowing money to become successful with one big idea...
this is far from the truth.
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Majority of successful entrepreneurs are not gamblers or risk takers as the media want
you to believe...most were ordinary folks who had the back up of a job. Majority were
ready to go back to their daytime jobs if they fail.
Bill Gates took time out of Harvard; Michael Dell started his business from his college
dorm, and was ready to go back to his study if his venture failed. Jeff Bezos of
Amazon.com started his business from his garage. He spent his break time taking
orders and posting them at his local post office. He started recruiting employees, only
after he could not fulfil the orders from his customers alone. He quit his job only after he
started earning enough money from his business to replace his daytime job.
You don’t need to quit your job before you start a business.
You can be a chicken entrepreneur. A chicken entrepreneur is someone who keeps his
day job and gets his ideal career going on in the evening and on weekends. He is an
entrepreneur because he takes the initiative to start his own business, he is a chicken
because he is not willing to quit his job and lose income.
This is what I recommend for you, if you are currently in full time employment.
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Step 3
Change your mindset
You need to change your mindset for you to achieve your wealth building dream.
Why do you need to change your mindset? Because having the right mindset is
important for building wealth.
A mindset is a way of thinking, an attitude or opinion that has become a habitual way of
doing things.
I found a very interesting definition on the internet, worth sharing
A particular point of view, through which one experiences reality, assuming a mindset
can feel like acting or role-playing during training, but ultimately one, simply becomes
the mindset that one wishes to have. At that point, it is an honest expression, although it
is a chosen point-of-view.
How you think, shapes your view of the world.
You see, before you can become wealthy, you must see yourself as already wealthy. It
must be your reality
The change must come from your inside. Your inner view of the world is a reflection of
your world.
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Three different kinds of mindset you can develop: a poor mindset, a ready mindset and
a rich mindset
The poor mindset is a person who sees the world as unfair and thinks in terms of luck.
The poor mindset believes becoming wealthy is a matter of winning the lottery or for the
“lucky few”. a poor mindset believes he has no control over his life, he puts his being
poor down to “destiny”. He spends his time and energy, complaining, condeming and
criticisizing. You hear words like “if only I could win the lottery then all my money
problems will be over”. They do not realize money is an effect not a cause.
Does that description sound familiar to you? I am sure you know one or two friends or
relatives who fit my description. Unless the person with a poor mindset changes his
thinling process, becoming wealthy is difficult.
The ready mindset is someone who is aware of the need to become wealthy,wants to
become rich and is actively working towards a goal, but for one reason or the other
things are not working as planned. The main reason the ready mindset , has problems
is due to lack of skills and knowledge.
Finally there is the ...
rich mindset ,the individual with an abundance mentality. He sees challenges as
opportiunities to become a better person. The individual with a rich mindset is an
optimist.The individual with a rich mindset recognizes that there are opportunities to
become wealthy. He recognises its his reaction to events-that determines the outcome.
The rich mindset has formed the habit of doing the things that create wealth.
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What you need is to develop a rich mindset to achieve your goals.
How do you develop a rich mindset? ...
Start to think in terms of creating value. This is important because the only way you can
become wealthy is when bring value to the market place. By adding value in the market
you make bmoney, money is an effect not a cause. And more value you add , the more
money you make.
Let me explain.
A concierge provides value by taking care of a building, the market pays him money
according to the value he provides. A doctor provides medical care, the market also
pays him wages according to his perceived value.The entrepreneur sets up a system of
delivering food to consumers, he gets paid for his ideas through dividends in his
company.
The enterpreneur makes more money because he is adding value on a large scale to
the consumers.
The bottomline is you need a rich mindset to achieve your wealthbuilding goals.
I have spent a lot of time on this step because its the most important part of the
process.
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A goal is a dream with a deadline”
-Napoleon Hill
Step 4
Set a deadline for your goal
Now that you know how much money, you need to live the lifestyle of your dreams; you
have chosen your vehicle for building your wealth. You need to set a deadline for when
you will acquire the assets
A goal is a “dream with a deadline”. You cannot achieve your dream unless you have a
deadline to achieve your goal.
The first thing is to break down your goals into long term, short term, weekly goals and
daily goals. Next, break your goals into tasks.
How to achieve your goals faster
One of the main challenges of achieving goals is having the discipline to follow through
on your goals. The secret to overcoming this obstacle is to develop and put into action
plans-to keep you working on your goals.
Here are some tips you can use:
Apply the Pareto principle. identify the top 20 percent tasks that will generate
80 percent of the output you need to accomplish your goals
Start each day doing the most important tasks first.
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Stay on your most important task, until you have accomplished them before
moving to the next task
Reward yourself for each milestone you reach in your wealth building goals...
your reward could be a massage, taking your spouse out, it does not have to be
a large reward.
Take action each day on your goals, no matter how small the action
Here is one thing I have learned from experience, from reading about the Kaizen
principle, the law of incremental improvement. The law of incremental improvement
simply means you can accomplish extraordinary things by becoming a tiny bit better
each day. Here is how it works. First, you make a decision to double your productivity,
performance and output by a small amount every single day. You then apply the
principle to improve your overall performance of your goals by a one tenth of 1 percent
each day. One tenth of 1 percent is equal to becoming 1/100th better and more
productive each day. If you one tenth better each day from Monday to Friday at the end
of one week, you will become one-half of 1 percent more productive, at the end of the
year you will be 26 percent more productive.
Since virtually every improvements compounds, like interest and affects your other
areas of performance, if you become 26 percent better per year you will be twice as
productive or 200 percent better, in 2.7 years. Because of these little increments in your
achieving your goals, you give power to making your dream a reality.
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Step 5
Get the knowledge, skills and ability you will need to reach
your goals.
Remember this fact...to achieve something you have never achieved before, you must
become someone you have never been before. You must develop knowledge and skills
that you do not have. When you set new goals, it will require you become a new person,
by developing additional skills in order to achieve and to keep it.
You need to develop certain skills in order to become wealthy. The main ones are; the
ability to think well, speak well and write well
Thinking Well
The secret to thinking well is to become analytical, that is you develop the ability to
analyze problems. The ability to analyze problems comes from being able to ask the
critical questions that will reveal the cause of your problem. Another key to thinking well
is being able to trust your gut instincts that the solutions, you have come up to solve
your problems are correct.
Speaking well
Studies show that the fear of public speaking is the second major cause of after the
fear of death amongst adults Americans.
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Your ability to speak well will propel you to the top 5 percent earners in any society. We
generally tend to be attracted to great speakers and communicators.
There are three keys to speaking well; the first key is to speak about what you know
well and excites you. When you speak about what excites you, you will speak with
passion. The second key to speaking well is, to know what you want to achieve by
speaking, that is speaking with purpose. Finally be persuasive, that is you connect with
your audience in an emotional way. When you connect with your audience, they are
able to absorb your message.
Why is this important? You may need to persuade your family, friends, your boss or
investors to help you achieve your goals.
Writing well
To write well you need to have the ability to persuade and communicate great ideas.
How can you identify great ideas? A great idea tends to engage you idea emotionally
and intellectually. If an idea is interesting to you, then it will be interesting to your
audience. Another key to writing well is to write as concisely and clearly. Never try to
impress. Write in the language of your audience, and keep your writing simple.
You can develop the skill and get the knowledge to achieve your goals. You can do so
by-reading books on your topic of interest, attending seminars, and courses in your
spare time.
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Step 6
Determine the people, groups and organizations whose help
you will require to achieve your goals.
Here is something I have found out from experience...Big goals require the active
cooperation of lots of people.
Before you seek the help of people, ask yourself, what will I do to earn their support?
Try to figure out what is in it for them.
Here is a quote from Robert Allen self made multimillionaire and co-author of The One
Minute Millionaire
“Study anyone who’s great and you’ll find that they apprenticed to a master, or
several masters. Therefore, if you want to achieve greatness, renown, and
superlative success you must be apprenticed to a master”
The role of mentors
One of the main strategies of the successful is that they constantly seek out guidance
and advice from the experts in their field. Make a list of the people you would like to ask
to mentor you. Approach them and ask for their help.
Here is Jack Canfield, Co creator chicken soup for the soul thoughts about mentors
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“Mentors help you see possibilities. In other words, they help you overcome
“possibility blindness” by acting as a role model for you and by conveying a
certain level of expectation as they communicate with you.”
Remember relationship is everything. Don’t be afraid to ask for help, ask your
network. One contact can make the difference between success and failure.
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Step 7
Make a plan to achieve your goal and take action
This step requires you make a list of the obstacles you will have to overcome, the
additional knowledge and skill you require and the people whose help you need. You
then organise the list into a plan based your priorities.
We have covered this aspect before it is worth repeating.
1. Write out your goals for the year, month and week in that order
2. Break your goals down to objectives
3. Break your objectives to tasks
4. Take one task and do it
5. Look at your tasks and ask yourself, which of these tasks will make the greatest
impact on achieving my goal?
6. Highlight the most important tasks and focus on doing only those tasks for the
day
7. Make sure you do the most important tasks that will add value and have the
greatest impact on achieving your goals on the long term daily
The key to planning to achieve your goals is to think in terms of long-term value. In
other words, you need to ask yourself the question, how important is the task I am now
doing going to help me achieve my wealth-building goals.
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Without organized plans backed with a desire to achieve your goals, you are doomed to
failure.
Finally, you need to do one more thing...
Take action.
This is perhaps the most important part of the exercise, take action immediately on your
plan. Once you start, don't stop.
Do something every day, that moves you towards the achievement of your goals.
Become intensely action oriented. Move with a sense of urgency.
Develop the momentum principle for success. The momentum principle states that once
you are in motion, it is much easier for you to stay in motion than if you come to a
complete halt and try to start all over. This principle is one of the success tips practiced
by high-achieving men and women.
Another principle is the principle of ready, fire, aim. You see smart people write down
their goals and start to take action, even if conditions do not favour them. Successful
people know it’s about taking action and then, adjusting the focus of their actions to
bring them nearer to their goals.
You take action and then motivation comes says Robert Ringer, bestselling author of
Looking out for No1.
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Your own 12-month action plan
You have heard it all; you now know the secret to achieving your dreams.
The ball is now in your court. I know you can do it.
You have the power to make the change starting today.
Here is an exercise you can start with today
Take a clean sheet of paper and write at the top of the page the words "my
wealth building goals" and today's date
Write down your net worth goals you would like to achieve in the first year
Write these goals in the past tense as though a year has passed and each goal
achieved.
Write these goals in a personal and positive word forms. Use words like " I am
now, I earn, I drive, I have" When you use the word “I” with regard to yourself,
you program your subconscious mind to go to work on your goals
once you have written down your wealth building goals , review you list and
select the one goal that will be your priority in order to achieve your wealth
building plan
Follow steps 3 to 7 of this guide
Make this goal your major definite purpose for the next 12 months
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When you are able to start your day, clarifying your goals, taking action to achieve
them, you will live a wealthier and happier life.
Happy investing
Think rich and grow rich
AkinOsho
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Recomended Resources
The journey to personal freedom takes understanding ..how to draw from resources, and tools
to help you achieve your goals.
I found many books helpful in achieving my goals. There is one thing about getting education
I like....it opens your mind to the world of possibilities , it guide you in decision making and
fills you with hope.
I am now passing to you some of the classic books and useful websites and newsletter I have
used. See if any would be of help and give me a feedback at;
My Top recomended books you should be reading
1. Think and grow rich by Napoleon Hill . This is the all time classic of all personal
development programs. I have read this book at least 5 times and i still refer to it. I
like the book because it gives you the road map to wealth.
2. Magic of Thinking Big by Eugene Schwartz. This book taught me how to get the self
confidence to act on my ideas. You’ll never give an excuse for not achieving succes
again if you read this book!
3. Rich Dad Poor Dad by Robert kiyosaki. I found this book extremely use in getting
clarity about wealth and why i need to be wealthy. I quit my salaried job and started
my businesss after i read this book
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4. Cashflow Quadrant By Robert Kiyosaki. This is part 2 of Rich dad poor dad. I found it
useful for gaining clarity about wealth creation and how I generate income. Good
read
5. Seven Years to Seven figures: The Fast-track to Becoming a Millionaire by Michael
Masterson. I found this book very useful especially for anyone who cannot wait for
retirement. The book is very useful for finding strategies to accelerate your income so
you can increase your net worth and nest egg.
6. TheTipping Point: How Little Things Can make a Big Difference by Malcolm Gladwell.
This book is very useful in explaining the importance of how your personality affects
your success. It is not a wealthbuilding book but its a must have if you have ideas you
want to sell to the market place
7. Outliers: The Story of Success by malcolm Gladwell. This book talks about the secret
to success-practice, timing and competency. I stopped worrying about not succeeding
in my business. The book gave me clairty about what’s important for success
8. Awaken the Giant Within: How to take Immediate Control of Your Physical, Emotional
and Financial Destiny by Anthony Robbins. This book talks about what you need to
become succesful-action. I have kep this book i my reference library because it helps
me to make the frequent switch to a wealthy mindset.
9. Real Estate Riches: How to Become Rich Using Your Banker’s Money by Dolf de Roos.
This book demystify the myth about real estate and shows you why owning real estate
is one of the wealth building vehicle you need to become rich
10. Loopholes of the Rich: How the Rich Legally Make More Money & Pay Less Taxes by
Diane Kennedy. This books show you how to free up your cash flow and take control of
your money like the rich do. I started my own company after reading this book
11. To Be or Not to Be Intimidated? That is the Question by Robert Ringer. This book give
you the skll set neede to stay alive and win in the world of business and in life
generally. Robert ringers insights will set you free from the propaganda of the
government and socialism
Recomended Audio programs
1. Lead the Field by Earl Nightingale
2. The Strangest secret for Succeeding in the World Today by Earl Nightingale
3. Think and Grow rich by Napoleon Hill
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4. Rich Dad Secrets by Robert kiyosaki
5. The Ultimate Goals Program by Brian Tracy
6. The Art of Exceptional Living by Jim Rohn
7. The Psychology of Winning by Dennis Waitley
8. See You at the Top by Zig Ziglar
9. Goals by zig Ziglar
Websites you might want to check out
http://www.earlytorise.com
http://www.richdad.com
http://www.creonline.com
http://www.investorhome.com
http://www.ft.com
http://www.nightingaleconant.com
http://www.awaionline.com
http://www.nicheology.com