Which is the important step ?

We have learnt about the 5 Sure Steps To Wealth.  These are as follows:

  1. Live within your means
  2. Expand your means
  3. Keep breaking Parkinson’s law
  4. Utilize insurance
  5. Diversify

Of the five steps, I want to tell you the most important step. Can you hazard a guess? Step 1-5 which one?

You must have read the three free e-books by now and you may be wondering if the steps are meant to be taken one after the other.

In the real sense, Steps 1 to 3 is a cycle. The cycle that spins money which is gradually used to build the wealth. While Steps 4 and 5 launches one into the realm of enduring wealth.

Without a sure foundation created by repeated cycles of step 1-3, the dream to abundance may remain a dream. The individual may survive (using loans, co-operatives, 401k savings), he may experience a moment of luck, a fleeting moment of breakthrough or an opportuned chance of provision (like a scholarship, a lottery win, a free vacation ticket from the company etc) but true wealth is elusive without a repeated successful cycle of Step 1-3. To ensure steps 1-3 is a successful cycle you may do well to read the series: WEALTH IS A RIVER 1-4.

Step 1 is almost impossible for many people because they barely have anything left each month. Some have no jobs! Where will the savings come from? Even 1% savings seems difficult. Such people need to learn how to skip step 1 and start from step 2 using “other peoples money (OPM) to build wealth.

Click here to read more about how to use OPM to build wealth

The best situation however is to start to learn the third form of financial intelligence by starting from step 1. This would ensure that most people get out of debt and develop emotional financial intelligence that make a man able to keep money and invest it instead of satisfying his cravings. When such persons handle “other peoples’ money”, they succeed in moving fast to Step 4.

Before Step 4, you need to focus all your attention and resources in one field of investment. You need to learn all you can learn before making any attempts to diversify. Take a look again at the picture below.Where are you

FROM THE PICTURE ABOVE, ASSESS WHERE YOU ARE AND DETERMINE WHERE YOU WANT TO BE AND WHEN.

STEP 3 is the most important step!
The step which sustains every other step is step 3. No matter your current financial status, you must keep breaking Parkinson’s Law. You must keep ensuring that you keep part of every income/profit that comes into your hands even when its seems it not enough or when it is so much that you are guaranteed of a continued income. Still keep breaking Parkinson’s Law.

This you can achieve in the following ways:

  1. Decide what percentage of every income which comes to you will be given out either as charity, tithe, gifts or offerings. As much as possible, do not exceed that amount.
  2. Decide never to stop saving a particular percentage of whatever income or profit you make. It has to be a permanent lifestyle. Cumulative wealth is the best bet.
  3. Plug the loopholes we all have loopholes. We all lose some money every time. Make effort to identify the points of leakages and block them.
    Regardless of whether one is poor or rich {for example; the $1.00 used to buy the chocolate we do not need, the N10.00 given arbitrarily to that street beggar (because at the moment it looked small), the quarter dollar left as change which you didn’t collect or the N 100.00 used to buy a can of coke for a friend who really doesn’t need it} we all have lifestyles and habits or friends and relations that constantly drain money in aliquots (little drops) from us. Another good example is the unplanned airtime that we bought because there is a promo and suddenly it looked liked plenty internet access! The most important thing actually was that money left your pocket!

Promos, free coupons, the extra I Litre etc are all aimed at making you give up an amount of money you never planned for to satisfy the desire that seemed ever bigger at the moment than “the little money”. In reality, the most important thing is that money left your pocket!!

You must start identifying those loopholes and begin to plug them. Plan that vacation and go for it when ready. Buy that phone when you have saved just enough money for it. You lose nothing by delaying gratification and life is great without those things. The adverts increase our appetites and makes us impatient such that we become financially dumb and loose the little we have.

Remember, money leaves the hands of those who do do not have, to go into the hands of those who keep it…

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