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Top 10 Keys to Financial Success

By Edited Apr 4, 2014 0 0

The "American dream" emphasises that financial success and happiness can be achieved by any hardworking person, regardless of the circumstances of birth, nationality, education, and many other factors. I honestly believe and key into this.

But, What is Financial Success?

Financial success is a very subjective term. This is because I can consider having a big company with a turn over of a billion dollars yearly as financial success while you may consider being able to feed, clothe and afford shelter as financial success but all in all, I think financial success is being debt-free, being able to afford the pleasures of life without actively working and having assets instead of liabilities.

Benefits of Financial Success

Having enough money to go round has its rewards. I capture some of them below:

  • You Will Feel Secured: Even though money gives a false sense of security, it no doubt makes you and your loved ones feel protected from possible future calamities.
  • You Will Experience Physical Comfort: Money cannot buy happiness but it can buy you physical pleasure and comfort. At least, you can sleep daily in the most expensive hotel and resort.
  • You Will Have All Your Time to Yourself: With money in your pocket, you can pursue your own purpose (business) and not work for other people.
  • You Will Have Peace of Mind: This sense of calm and tranquility comes from knowing that you have prepared for any uncertainties that life may throw your way.
  • You Will Be Able to Help Others: Giving part of what you have to help the under-privileged is one of the keys to living a happy life.

How to Achieve Financial Success

Achieving financial success is not rocket science. It can be done by anybody, regardless of background, education, social class and nationality, following the formula for financial success, which is:

  • Make money: For you to attain financial freedom, you must know how to make money.
  • Manage Money: Secondly, you must know how to manage the money you’re making.
  • Multiply Money: Thirdly, you must know how to multiply the money you’re making. This essentially means, you must know how to make $1 to become $2.

I reveal more tips to achieving financial freedom below:

  • Key No 1: Believe You Can Attain Financial Success

I honestly believe attaining financial success starts with a positive mental attitude. If you believe you can do it, the battle is half-won because your belief would spur you to take steps to achieve your goal. Aside believing, I also think you should thirst and hunger for financial success. Anything you hungrily desire would come to you, no matter what people say or do.

  • Key No 2: Get Yourself a Job

Getting your finances under control can never be possible without a job. You need a job with a good paycheck to be able to meet your financial commitments. Remember to pay yourself first anytime you get a paycheck. You can then save the rest or invest it.

  • Key No 3: Spend Less Than You Earn

Live within your means. Don’t try to impress people. There’s no wisdom living in a high-brow neighbourhood if you know you can’t afford it without incurring debt. Don’t maintain an expensive lifestyle on your credit card, the consequences may not be too palatable as you will not only repay the debt; you’d also get to pay interest.

  • Key No 4: Make a Budget and Stick to It

We all hate the word ‘budget’ but it’s a life saver any day. Make a budget of how much you want to spend every month and stick to it. Say no to any purchase that will impact negatively on your budget. But make room for the unexpected in your budget.

  • Key No 5: Learn to Make Extra Income

Even though you have a day job, don’t just rely on it. Learn to make extra income by engaging your passion for writing, speaking or sewing. Whatever passion you have can be converted into profit. Your job is just to discover it and let people know about it.

  • Key No 6: Save Regularly

Every month, save a part of your paycheck. Experts recommend saving 10% per month but if you find it difficult to do, try saving 2% first, when you’re used to it, move it to 5% until you’re comfortable with saving 10% and even more on a monthly basis.

  • Key No 7: Invest Regularly

Once you have saved a substantial sum, invest it. Don’t just keep your money in a savings account. Make your money work for you. You can invest in stocks, bonds and real estate, depending on how much you have and your investment goals. And if you’re confused about what to invest in, consult a financial planner.

  • Key No 8: Pay off Your Debt

You can’t have a huge debt portfolio and claim to be financially successful; it’s just not possible. So prioritize your debt payment and go on to pay. The fact that you got a mortgage for 30 years does not mean you cannot pay it in 10 years. You just have to make debt repayment a priority.

  • Key No 9: Have An Emergency Fund

Having an emergency fund is essential to take care of exigencies such as car repairs, health emergencies, a leaky roof, kitchen fire disasters, etc. You can deposit a small percentage of your paycheck into an emergency fund and ensure you don’t touch it even if there’s no use for it in any given month.

  • Key No 10: Get a Mentor and Financial Planner

Having a mentor who’s financially successful can really speed up the process for you as you get first-hand advice from someone who has walked the road before you. It also helps to keep you focused on your goals and avoid the distractions of everyday life and living.

A good financial planner can help you manage your money and advise on where to invest it for best results.

Summary and Action TakeAway

You can’t really claim to be successful in life if your finance situation is poor. This is because you need money to fuel your other goals in life, be it academic, marital, business, health, etc. So, get on the road to attaining financial freedom NOW!

Fortunately, you don’t have to be a personal finance expert to get your finances under control. Common sense and applying some of the tips in this article can make you financially free. So, get to work NOW!



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