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Friday, September 7, 2012

Tips to Financial freedom

Peak Performance presentation.

Wealth creation tips

  • ·        The neuroscience of change: how the brain works- don't change things at the intellectual level, most of your decisions are actually made by the subconscious mind.
  • ·        How you've been conditioned over time, by your background, family and those around you, will determine how you deal with money.
  • ·         You need to reprogram your mind!
  • ·        Why do you go to work? Broke people work to sustain their current lifestyle.
  • ·        Rich people work to invest for the future. You want to retire because you are financially free, so work because you want to; not because you don't have a choice.
  • ·        What do you want financially? Achieving this will boost your self-confidence; if you are financially insecure, then you will let others berate you. Work on your terms.
·        What is stopping you from moving ahead? - how you're wired:
  • ·         Rewire your brain: reset your thermostat.  Most of the time we react to our old conditioning: we've been conditioned that you must work hard so that you're promoted and then one day you will be wealthy, we've been taught that you must work for 40 years so that you can retire happy but that isn’t necessarily true in reality. Work smart!
  • ·         It’s not your employers job to make you wealthy, you're employers work is to give you value for value.
  • ·        You must change your mind-set if you want to create wealth. Moving jobs in search of greener pastures doesn't make you Wealthy because your mind-set remains the same and soon enough, you realize that you still aren’t content.
  • ·        Where you invest is up to you.
  • ·         Reality check: upon retirement, only one in every 100 people will be financially free, only 4 out of 100 will be financially independent, 50 out of 100 will depend on family and friends for support, 15 of 100 will be looking for employment and 30 out of 100 will die early.
  • ·        Gauge yourselves: what is your current net worth?
  • Are you a high, low or average accumulator of wealth? If you’re net worth is less than your current net annual household income (or your own annual income if you are not married) then you are a low wealth accumulator, if its equal then you are average, if it’s higher then you’re a good accumulator of wealth.
  • ·        For you to accumulate wealth, you must make conscious decisions based on three categories for asset allocation: security, growth and dreams.
  • ·        When you get your salary, do you rush off to buy luxury items? expensive things that you want such as phones, TVs, that sort of thing, do you blow money on meals, drinks and other outings?, those that you dream about as ‘the good life’? These things won’t make you wealthier. If you do, then you have started upside down. You should start your spending with Security then Growth then Dreams.
  • ·        In your security account, you should have sufficient income to cover your expenses for about 6 months in case you lose your job or the economy collapses. Security is not plots; security must be liquid, money that can be accessed on demand. A plot is a growth thing since it is an investment.

1 comment:

  1. Well explained, Kate! Financial flexibility doesn't come in the form of luxurious items. It is measured according to how you can sustain your basic needs over a period of time without working. Your financial capability is based on how well you can provide for all that you need, and that includes the quality of the items on which you spend your money.

    Casey Poehl