5 Steps to Financial Success

Author: Damien Thomas

Source: ezinearticles.com

If you did a study of millionaires, you would find a common number of steps that it is necessary for them to make their fortune. These steps are not secrets or are only available to a few. These steps can be started by you, Today!

Step 1: Think like a Millionaire.

The first step towards financial abundance is to think like a millionaire. Millionaires have a different set of core beliefs and habits that enable them to see setbacks and failures differently from the average person. They are able to see opportunities and act on them, and gain valuable learning experiences along the way. You will need to develop the same positive core beliefs and habits to see the huge amount of financial opportunities that are available around you.

Step 2: Financial Goals and Strategy.

Millionaires all started with clear, precise financial goals. They all believed that they would be wealthy and successful one day. Most people do not set clear goals for themselves, or truly believe that they will become rich. No matter how ambitious your financial goals may seem to be, they are only dreams unless you develop a detailed plan to turn these dreams into reality. When setting your financial goals you will need to be specific. You will need to have specific figures to focus all of your energy on. Unless you have a specific figure you will never be able to develop an action plan to achieve this goal.

If your goal is to earn $50,000 a year, what would your strategy be? If your goal is to earn $100,000 would you need a different strategy and action plan? Of course you would. You might need to get a promotion in your company by taking extra evening classes and by showing extra results to your employers. What if you wanted to earn $1 million a year? Well, you would need a million dollar strategy. You might have to own your own successful company or get into investing. After you have made specific financial targets of how much wealth you want to accumulate, you must then come up with a comprehensive and effective plan to achieve these goals. It is only when you have a clear idea of how much wealth you are going to create, that you will be able to come up with an effective strategy to achieve it. It is vital to take responsibility and spend time and serious effort to develop an action plan to achieve your specific financial goals.

Step 3: Increase Your Income.

This is when you need to look at your financial plan and understand that with the amount you are earning and investing right now, it might take decades before you are able to achieve all of your financial goals.

So we need to accelerate your financial plan by taking positive steps to increase your income, not by 10% or 20%, but by up to 10 times.

All it should take is to learn the proven methods that thousands of people have used before you to create multiple streams of income to enable them to create personal fortunes of millions. These ways can be found by investing in your library, learn how millionaires have made their fortunes. Find a mentor, research online, Get help from successful financial advisors. Do not be tempted by 'get rich schemes' out there to make your fortune overnight. The longer it takes to build your fortune the more you will appreciate it.

Step 4: Management of Wealth and Reduction of Expenses.

Once you learn how to increase your income, you are not finished yet. By increasing income is only one step of the equation. There are people who earn $100,000 a year but who are still broke. On the other hand, you can earn $50,000 a year be more wealthy than someone who earns $100,000.

This is because no matter how much you earn, if you do not learn to control your expenditures, you will always end up spending most of your income and end up being broke. However, if you manage your money correctly, you will be able to accumulate your wealth in a much more effective manner. Always remember that financial abundance is not based on how much you earn but how much you are able to save and invest out of your income. Financial abundance can only be achieved when you learn how to make money work for you. In other words, you need to let your money compound into huge returns over time. Remember rich people invest first and spend what is left. People who are not rich, spend first and invest what is left.

Step 5: Protect Your Wealth.

When you have built a financial fortune for yourself, you must learn how to protect it. There are many people who have spent most of their lives building their fortune only to see it wiped out by circumstances not controlled or protected by them. Do not fall into the same trap.