Few investors require an expert to suggest to them what to do, when what kind of decision requires to make, etc. They entirely rely on the expert. So that if they have made a mistake for choosing their expert then their chance of winning get reduced and sometimes, very less chance or increases in the chance of losing. They are financially uneducated and not interested in investing in learning financial education which makes them helpless to rely on so-called experts.
Few are those who interviewed many stockbrokers, advisors, before making any investment decisions. They are busy with their works and do not find time to gain knowledge. So that they would like to delegate their investment decision to those who are good at it.
And remaining having a good knowledge about investment which help them to make more wise decision with their investment without relying on others.
For gaining a good grip into the B and I quadrant, we learn to solve bigger financial problems. We try to be a good business owner because a good business owner can understand the business part well and also has an excess cash flow to invest. If we do not have a proper financial education then we can do a blunder in the I quadrant. So that financial education is key to making a wiser decision as well as avoiding blunders.
Business and investing are not risky, but being under-educated is.
We are always taught in our school, family that business and investments are riskier so that we should stay far from it. But no one taught to build wealth, manage risk, and financial literacy.
Proper cash flow management can help us to go out of the rat race and debt trap. People not going for investment by considering it risky but when we are financially uneducated then that creates more risk to us. We have to understand what actual risk is. After the proper education, we can generate income from our assets as well as build more assets from income also. This will help us to attract fortune and financial freedom in our life.
When we write down our fears and work on overcoming them, then it will help us to grow fearlessly. Knowledge is the only option to grow substantially from any of the situations. We should start with scratch, learn about the various assets class, experiment small portion in all of them to find out which assets class suits our temperaments. After that start learning about mistakes made by others which helps us to stay one step ahead. Be ready to make mistakes and learn further from them.
Kindly check out mistakes and learn from well-known investors.
We focus on earning more money with the belief that more money aids to knock out our problems. But if we do not have the skill to manage cash flow then higher-earning also will not be able to help us, even it can work as a curse for us. Many a time, with more money, people will increase their spending and take higher debt. This will create a problem bigger compared to what it was earlier. We are the CEO of our life so that we have to think in a way to improve our position.
Our liability is an asset for someone and we are working to make them rich rather than to make ourselves. We need to remember that good debt is debt someone else paid for us. Bad debt is a debt that we paid with our sweat and blood.
We need to learn to spend within our means rather than spending more on liabilities, we should work on increasing our means (assets).
We can reduce personal debt by not using multiple credit cards, focusing on earning a few amounts extra every month, try to repay slowly one by one debt. As we get debt-free then we should start investing the same amount which we paid every month on debt. This process will help us to grow steadily.
Investment always helps us to become financially free while debt drag down our dream.
Do we work hard and make other people rich? Or working for achieving your dreams? We are programmed in such a way that willingly or unwillingly; we are stuck with such a situation. When we make other people rich, we consider ourselves safe. When we consider ourselves safe ourself then we fall into the trap of our comfort zone, which makes us helpless to work for others’ dreams. We forget to pursue our dream.
Fill your financial statement
Before we proceed, we must have to know that where we stand. And to know our status, we have to write down all income and expenses which helps us to see a clear picture.
Set financial goals
Without setting up goals, we cannot achieve what we want. So that we need to set five years, one-year goals to achieve financial freedom. Few examples and formats are given by the author.
Few examples and formats are given by the author
We need to be genuine with ourselves for filling our financial statement then only we can reach where we want to be. For better guidance, we should keep an auditor – a person who has achieved in real what we want to achieve. A mentor, who helps us to achieve our dreams, guides us to walk on a bumpy road.
When we start walking on this road, we faced lots of obstacles. And for overcoming those, we need a guide who is stronger enough to hold our hand to cross it.