More than half of the world’s population lives in poverty today while just a few people control the majority of the planet’s wealth. Not surprisingly, this small group of people all have one thing in common and that’s a similar understanding of money and financial success.
In fact, I believe that if you can learn the same concepts about finances as these rich individuals then it would change your life and set you on your path to financial freedom and as such here are the 4 pillars of financial success that will allow you to do just that!
Pillar #1: Having The Right Mindset
Attaining financial freedom is the dream of most people but they don’t know how to achieve it. Some people think that once they can make more money, then all their financial problems will come to an end but that is not true. Building a pillar for good financial success starts with your mind. Your mindset will determine to a great extent how much you can make and how much you will keep which are two core elements in achieving financial success.
This mindset is the mental attitude that determines how you will interpret and respond to situations and in this case it’s how you perceive your finances. You have to know that your mindset is the most powerful tool that will determine your financial success in life. So many people do not realize that money is a tool so they live all their life trying to chase more money instead of focusing on their dreams which makes them happier and achieve more. When you see money as a tool you will develop a positive connection to money and it will also become easier for you to acquire. When you see money as a tool you will begin to use it for what tools are used for. Those who have built a good pillar of financial success know that money is a tool. Therefore, they use it to make more money by investing it and also using it to acquire more assets rather than spending it on things that are not necessary.
The first mindset that you will have to develop is to think of money as a good thing. It will surprise you to know that a lot of people think that money is bad and they see it as evil. People with this type of mindset always repel money because of the way they think about it. If you are the type that thinks money is the root of all evil then you are probably in this category. Money is good and it is a tool that makes life easier. With money, you can get all the things that you want and be satisfied. You have to have a mindset that does not think that money is evil if you want to achieve financial success.
Your mindset comes from what you believe and what you believe is what determines the outcome of your life. If you believe in failure you will definitely attract failure to yourself and if you believe in success you will also attract success to yourself. You have to learn to believe you can succeed no matter what if you want to have financial success. You have to believe that you can succeed even in the midst of failure. This mindset will help you reduce your panic and make you focus on solutions rather than problems. Even when you are in the midst of a difficult situation, this mindset makes you calm instead of complaining and being scared.
Pillar #2: Setting Up A Financial System
You can’t have financial success if you don’t set up a financial system that will help you control and manage your finances. These are structures that will support your finances and help you develop a strategy to also grow your finances.
One of the first things to do if you want to set up a financial system is to start with a budget. A budget is a financial statement of your expected income and how you intend to spend it. It is an excellent way to manage your money and know how much you spend and what you spend money on. It helps you organize your spending and also to get the things you need the most while giving you room to save and also invest. But when it comes to investing, you may not be able to do it yourself so it is always better to consider hiring a financial advisor. The first reason why you need to hire a financial advisor is that you cannot do the things that they do. An advisor helps you plan carefully and ensures that you achieve your financial objectives and goal. They are experts who have managed other people’s finances and they know what it takes to be successful. You may not have all the needed knowledge and expertise which limits you and makes it difficult for you to achieve any form of financial success.
Additionally, you may not have enough time to manage your money yourself so if you have the money why not invest in a financial advisor. A financial advisor will make objective decisions free from emotional bias which will be present when you are handling your own money. A financial advisor can help you research an investment opportunity for instance. With their years experienced they know what to look out for to know if an investment is profitable.
Pillar #3: Acquiring High-income Skills
In an organization, the people who earn more money aren’t necessarily the people who work the hardest. Making more money does not require too much physical energy or stress. You just need to do the right thing. People who work for the same company using the same number of hours in a day will not all get paid equally. While some will be taking a very low salary others will laugh all the way to the bank because they have optimized their hourly earnings. What separates them is the skills that they possess.
The people who earn less have little or no skills compared to those who have high demand skills. For example, a janitor will not expect to be paid the same amount as the manager. The reason for this is that the work of the janitor requires little or no skills while the manager needs a lot of experience and skills to coordinate people and resources to achieve a goal. A janitor is easily replaceable but it will take more time and a lot of processes to change the manager. In every organization, there are skills that are needed that they can’t do without. Your job is to identify these high paying skills and then do them. Make a list of all the skills that you have and see how it will be useful for the organization where you find yourself. You can discuss with your employers how these skills of yours will help the organization grow and offer to help them. This will make you more valuable. You can even ask for an increase in pay for using those extra skills and your employer will definitely be willing to increase your rate when they know the benefits that your skills can bring to them.
And if you don’t have any of the top skills you can learn them easily. It can be challenging to learn a new skill especially when you do not have a previous understanding about it. You have to find a way to motivate yourself by focusing on the rewards that it will give you at the end.
So what are the easiest ways to learn these skills? Learning some new skills may require you to go back to school or go for formal training. The rewards will always be greater than the stress you may need to go through to achieve it. You can get someone who is highly skilled to be your mentor. That way you can learn directly from them and put into practice the things that they tell you to do. Another option is for you to get paid courses or programs where you can develop these skills. Obtain quality skills and the money will come!
Pillar #4: Scaling Up Your Income
One of the reasons why you need to scale up your income is to make more money without giving up more of your time. We are all restricted to the 24 hours in the day so why not maximize our earnings by making more per hour? Scaling up your income or business requires careful planning for you to be able to build a system that can support your income’s growth. When scaling up you have to maximize resources two of which being your time and your money.
In the context of a business, when your business grows you will begin to have too many demands which you may not be able to handle by yourself again. This is a sign that you need to scale up your business and one of the ways of doing this is by outsourcing. Outsourcing means getting other people that are not within your organization to do a work you would have done yourself or by other people within your organization.
As you are scaling up one of the resources, what you will need the most is human resources. You have to look for means to spend less so, it is best to always find a means to minimize cost. One of the benefits of outsourcing is that it will save you money because you won’t have to employ a permanent worker that you will be paying a salary. Your fixed cost also remains the same which gives you more room to expand without putting too much money on the line. You only need to use the person for as long as the project is running. Since you will be hiring someone who is an expert, you will not need to spend money on training and also paying for their office space. Outsourcing makes it easier for you to complete your project within a short time. You also don’t need to waste resources to employ someone that you won’t be needing after one project.
By outsourcing, you are simply leveraging existing resources that you have without building a new one. Outsourcing gives you the option to select the best of the best and gives you the flexibility to work with anyone from anywhere. You can easily select from the range of available people. You can also have access to people who may be more skilled than your regular workers to do a particular task that no one else can do better. With outsourcing, you spend less but make more money. You can also save yourself time as well as the time of your team members. It is better to outsource and let your team member focus on their work instead of given them too much work that they will not be able to do.
Ultimately, for you to achieve financial success you must have these 4 pillars in place. These elements form the basis for financial success and without them you risk living your life in the depths of poverty which is something I know you want to avoid!