TOP 5 SECRETS TO ACHIEVING YOUR FINANCIAL MASTERY
HOW TO ACHIEVE YOUR FINANCIAL MASTERY
1.)Lear To Earn
2.)Maintain Your Wealth
3.)Increase your Wealth
4.)Protect Your Wealth
5.)Be Generous With Your Wealth
1.)Learn To Earn
The first thing you need to do is start making more money. This step may seem elementary but it is the most fundamental one for those who are just starting out.There are three types of income;
•Earned Income
•Portfolio Income
•Passive Income
•Earned Income is the type of money you earn from your job or any other type of work you do and receive wages or salary.This is the most taxed of all the three types of income.
•Portfolio Income is the money you receive from capital gains such as dividents incase you own shares in a certain company,or else you can earn portfolio income by buying a real estate then selling it when the prices appreciate.
•Pasive income is the money you earn from owning real estate,you can receive this as rent,you can also get this income from owning intellectual properties like songs and books then licencing other people to use your copyrights.
Now that we have named the three types of income,you nrrd to come up with a strategy on how you will be receiving income atleast from two or all of this types.Note that the richest people like Warren Buffet,Bill Gates and Elon Musk works for passive income.
2.)Maintain Your Wealth
After you have mastered the type of income you are working on,you will need to maintain this great wealth you have built.As you already know,wealth is jealous.If you do not take care of it,it will suddenly get another partner.You will need a strategy to maintain your wealth such as avoiding unneessary liabilities until you can afford them.A research done by Thomas J. Stanley and William D. Danko in the book The Millionaire Next Door showed that frugality was secret of the american self-made millionaires.Self made millionaires bought second hand cars which equated to 10% or less of their wealth.
3.)Increase Your Wealth
This is another vital strategy on your journey to financial mastery.Increasing your wealth means expanding your means and even the network of people you live with.Jay Z,the popular pop artist in an interview,said "my network is my networth".The people around you are your true wealth.Having to do this,it will be demanding for you to master people skills i.e good communication skills,leadership skills,empathy and emotional intelligence skills.
4.)Protect Your Wealth
Learning to build wealth and failing to protect it is like being 'penny wise and pound foolish'.To achieve financial mastery you will need to commit your time atleast once a day,week or month to check varios laws and regulations that affect your source of income inorder to know how you can leverage ypor moneyleggally.Incase your don't have enough time to do this,it is advisable to hire a proffessional such as a lawyer or an acountant to do this for you.Most people lose their hard earned money in taxes due to ignorance.Mastering to protect your wealth will always be fruitfull in your financial journey.
5.)Be Generous with Your Money
Lastly,you will need to always be generous with your money and stick to your human values.The most richest people have admitted to paying their partner 'God' first,then paying themselves second at a certain percentange of their earnings.The higher percentage you set to pay yourself first i.e before paying your lawyer or accountant eqauates a higher financial mastery.Giving out a seed money to charity works is always a rule a rule of thumb for anyone who wants to achieve their financial mastery.Good luck on your journey to building great wealth.
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