10 Steps To Financial Independence

Step 1: Ask yourself: "How badly do I want it?"

I don't mean "Do I really want to be rich?"

What I want you to ask yourself is "Am I prepared to work very hard, miss social activities, deal with loneliness, fight fatigue and in general pay a steep price?"

Some people get lucky. But most wealth results from a prodigious work ethic and lots of persistence.

Step 2: Determine what you really love doing.

With few exceptions, most people acquire serious wealth by throwing themselves into their passion.

Step 3: Educate yourself.

Traditional schooling is only part of the equation. Try to meet successful people in your area of interest. Solicit their advice. Read everything you can about how others succeeded. Wealth often comes from doing something that's already been done – in a slightly different way.

Step 4: Create and start an exercise regimen.

Your journey will require physical endurance. Develop healthy exercise and eating habits. The stronger you are physically, the more likely you will achieve your financial goals.

Step 5: Learn mind control.

Whether through yoga, meditation or Eckhart Tolle, learn how your mind works. You will be challenged in the years ahead. Your ability to fight off panic, melancholy and fatigue will stand you in good stead.

Step 6: Find a good attorney and accountant.

Even if you have no income or business to speak of, start asking people about attorneys and accountants in your area. Once your income grows, you'll want to engage someone who knows you from the "ground up."

Step 7: Delay purchases that don't contribute to your ultimate goal.

Don't jump to buy a house, or even a new car. Evaluate every significant purchase you make in terms of how it affects your long-term goal.

Step 8: Estimate how long it will take to achieve your goal. Then double it.

Are you still in?

Step 9: Look your life partner in the eyes.

Married? Living with someone? Have a best friend? Is this person with you?

Especially in the early years, any person with whom you spend your free time better be on board. Of course, that assumes you'll have free time.

Step 10: Think about giving money away.

This one may sound counterintuitive. But I suggest that before you even have any money, consider how you will give some away. This will not only help you visualize your success, but also keep the fire burning inside you.

Think about what makes you cry. Now think about donating $1 million dollars to that cause. This will keep you focused.

Comments

[Mich@BeatingTheIndex]

I would say the most important item in the list is Step 2. Have you identified your passion? if yes, you're set to go.

Unfortunately, this is the hardest thing to discover for many many people!

[Jim Randel]

hi mich, certainly agree with you about passion ... i hope you will take a look at our book, The Skinny on Success: Why Not You? which speaks to finding one's passion ... best regards, Jim

[Kenneth Nwarache]

For me, step 10 really touched me cos I'm of thought that its only in giving that you receive. I find it so hard giving cos I throw back almost all my money into my business.

This piece came in handy and I'll have to scribble all these steps down.

Thanks loads

[JKT]

I am finding #6 to be the most surprising and confusing. If you are not good enough with money to know how to save and budget, I don't know that an accountant is going to help you enough that you can ever become financially independent. And it's not clear at all what the attorney is doing for you (unless you don't have a will; everyone should indeed have one.)

[Jim Randel]

@Ken, i understand your point because i, too, throw back everything i make into the business... however, the thought of ONE DAY giving away large dollars to worthwhile causes can keep you focused when times are challenging. best, Jim

@JKT, i would say that working with an accountant is more about tax planning and establishing good tax-related systems and procedures than just about budgeting... as to an attorney, someone who can help you prepare and review contracts, who can advise you of potential liabilities, etc. -- these may not be services you need TODAY but as you grow, they become more and more apparent... best, Jim

[Perry P.]

Great read. Having a partner that believes in you and is willing to go on that same ride with you is so important. There are risks that your going to take and your partner needs to be comfortable. Otherwise you could have some one consciously or unconsciously putting up roadblocks for you