By and large, people are unhappy when they are confused and disorderly in any area of life. Find a person who appears to be “happy” yet they are surrounded by chaos, and I will show you someone who is actually insane. The area of money is no exception. People are unhappy about their financial situation because they are confused about the subject of money. Mostly they are confused about the actual financial condition they are in and what to do about it.
There are two ends of the financial spectrum: Financial Ruin and Financial Freedom.
Financial Freedom is where one has an abundance of income coming in from multiple sources, where there is no bad debt, there is a reliable income stream they cannot outlive, practically all their assets are protected from loss, they own a business that is achieving maximum value, and they have time to pursue whatever life goals they may have.
Financial Ruin on the other hand, could be described as a condition where one has a scarcity of income, overburdening debt and obligations which cannot be seemingly paid back, massive losses of assets due to taxes, lawsuits, and malinvestments, and where one has a general hopelessness that anything will ever get better.
Unfortunately, most people are much closer to financial ruin then they are to financial freedom. Over 85% of the American population is making less than $50,000 a year. Thus it could be deduced that the financial information available to most people guiding them how to get into financial freedom is altered, suppressed, twisted, and made complex.
Part of changing one’s financial condition is not only to know the basic natural laws about the subject, but also to have the ability to separate out the important from the unimportant actions to improve one’s financial condition. A perfect example of a misunderstood financial topic is investing.
A majority of Americans are FASCINATED with the subject of investing. They spend billions of dollars learning all about different types of investment schemes, techniques, and strategies with the hopes of making big returns with their dollars. Unfortunately, the majority end up with subpar returns, or worse yet, huge financial losses. While investing is certainly an important financial system to learn, it is only important if done correctly and done in the right sequence.
There ARE financial "importances" and "unimportances." The actions that have the freedom to positively CHANGE financial conditions are considered important. Those things which don’t have an impact on improving one’s condition would be considered relatively unimportant. Based on my experience, I’ve compiled a list:
The challenge to understanding why most people are unhappy and confused about money comes down to uncovering the source and then determining the factors which lead to actual financial improvement. As you can see from this list, the majority of the actions named “relatively” unimportant, make up the bulk of what we read, hear, and see on all the news and media channels as what is important to focus on to have Financial Freedom. This is the reason why the masses are experiencing a condition near financial ruin. We are advised to have our attention on things which are relatively unimportant instead of guided to get educated on important actions we should be focused on that would bring us closer to a condition of financial freedom.
Anyone can change their financial condition quickly.
Here is a list of 10 primary actions one could take to start a journey towards Financial Freedom:
- Learn the proper knowledge of the natural laws of the subject of money
- Make abundant-minded financial decisions
- Set big goals with a purpose to support them
- Follow a written plan with correct financial measurements (we track 17 metrics)
- Focus on creating an abundance of income from a primary source
- Gain the ability to control money by “expensing” 30-40% of income into a reserve account
- Set short-term income targets and track progress
- Invest in areas that produce positive cash flow for the future
- Eliminate the waste of interest costs and taxes
- Protect practically all your assets from loss
The most valuable action you can do with this list is to implement and track these 10 successful actions over and over and over and over again (and over again) until you are in a financial condition where you could wake up in the morning and never “have” to work again! That’s Financial Freedom!
It’s not sexy. It’s actually pretty boring, but it works. This shouldn’t take you “forever” to accomplish – give yourself a target of 10 years to get there and be sure to measure your progress frequently. This is how you CONTROL money.
The vast majority of people will fall short of achieving Financial Freedom because they focus on actions which have little impact on actually moving the needle toward improving their financial condition. Don’t be one of them. Stop listening to the tips, tricks, hacks, and financial doomsdayers.
You do NOT need a Financial Guru, you need a Financial Guide.
For over 10 years, our firm has been focused on helping hundreds and hundreds of practice owners navigate the turbulent financial waters, educating them how to make confident financial decisions through proper planning and wealth management. In fact, we have had over 15,000 conversations with practice owners on the subject of money, guiding them on how to improve their personal and business wealth and holding them accountable to their goals. Our role is to continuously hold their attention on the important factors that produce real financial results. We want to be your Financial Guide on your journey to Financial Freedom. Schedule an appointment today to learn more about how we can create a road map for you.
Do Well Owners!
Eric Miller, Your BFFF® Advisory Services offered through Econologics Financial Advisors, LLC., A Federally Registered Investment Advisor.