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21 Sept 2022


Individuals who achieve their financial goals embark on continuous financial planning and attaining financial education. Personal finance education is widely available, thanks to the internet. There is no excuse!

With most individuals the initial goal is gaining financial independence so that one owns their time. Sustainable financial freedom buys a dream lifestyle and a legacy to leave behind. The ultimate goal is to live and live truly. The way I work on my goals is through having daily activities that keep me where I am and motivate me to building more. One needs to craft a programme that ensures active building and maintenance. Goals drive us from watching our lives passing by, to taking full control. Every lifestyle choice and decision is informed by the size of ones dream.

The financial freedom journey is both psychological and emotional. Never expect it to be about numbers, checks and balances. You are training you mindset to shift. This is why one has to keep recalling why they or their parents and grandparents were in the predicament they were in. The journey forward necessitates a look behind. Change the way you feel about wealth and then:

Take a closer look at what you already have and your current resources.
What assets do you have? Do you have equity that can buy more assets? Do you have sufficient income to build more equity? Do you need extra income to fast track your journey to financial independence?

Examine the external environment. Can you build protection against risk and uncertainties? Where is the economy moving? Are you well diversified across asset classes to manage risk? Are you diversified geographically to mitigate local risk?

Protection against inflation. The current global inflation situation requires thorough planning. Is the buying power of your equity growing with inflation? Are you invested in the above inflation assets? Do yu have investments that are specifically meant to act as a hedge against increases in prices of goods and services? If not, your money could be losing value and declining with time.

Tax structure. Do you understand the basics on tax laws? Are you not paying more tax than necessary? Are your assets having tax benefits? Do you know how to take advantage of the tax benefits to continuously reduce your tax bill? Do you know how to file your taxes?

Financial freedom. What is your ultimate dream? Have you set timelines to achieve your financial goals? Do you set smaller goals for the year/ quarter/ month/ week? Have you drafted a clear plan? When do you want to retire and live in your own terms?

Money pits. Where does your money go every month? Do you scrutinize your bank statement to find your answers? Are you not paying too much for a home or a car? Have you set a plan to reduce or eliminate your debt? Consumer debt will delay achieving a goal. As a principle, I do not keep any debt, except for the rental property mortgages. Take charge!

Family and money. Does your family talk about money? Are your family conversations around money positive? Does your family know your financial goals? Do you know their financial goals? Do you keep each other accountable? How often do you update each other on your individual progresses?

Current vs future lifestyle. Are you clear on what you earn and how you spend it? Can you maintain your current lifestyle for the rest of your life? If not, scaling down could be your solution.

Personal Roadmap. How often do you check where you are in your financial independence journey?

How are these questions helping in your wealth creation journey? Have you started yet? Ask us any questions. Please share the article.

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