Eight Secrets of Financial Independence

“We simply assume that the way we see things is the way they really are or the way they should be. And our attitudes and behaviors grow out of these assumptions.” - Stephen Covey
Secret #1 – This is by far the single most important of the 8 secrets. It is the foundational key to all success

TAKE ACTION!
If you can’t take the action necessary to achieve financial independence and success, to improve your life, you will no doubt wind up right alongside the 95 percent of the population that is dependent on debt and are ultimately financial failures.

It’s that simple. You can have the very best teachers, the very best education and training, read the best books and listen to the best tapes but without taking action, it’s all wasted. I can’t emphasize this point too strongly or enough. You must find it in yourself to resolve to act; otherwise your thinking will amount to nothing.

Secret #2 – The level of success you achieve in your life is directly proportional to your willingness to accept full responsibility for your life. No matter where you are now, you can only achieve greater things if you take blame and hold yourself accountable for your past. Accept your past and grasp hold of your future.

Secret #3 – Failing to execute a plan for financial independence is the same as planning to fail. This seems fairly self evident. People just float around through their financial life hoping it will all somehow just work out. This is not only wrong but it reeks of insanity

Secret #4 – A home based business where you can invest work and time instead of money. You can make more money with a business of your own than a job would pay you and the tax benefits are worth the effort. It would be a good practice to start slow and small and work it steadily. Eventually, the income will exceed your job and you will need to make a decision as to whether you want to quit your job and take your business full time.

Secret #5 – Residual vs. Linear Income Most people work at a job that pays them a linear income, which means that for every hour they work they get paid an hour’s wage. Or they sell a widget and get paid a commission on that one widget. Residual income, on the other hand, is cumulative and continuous. Let’s say that you sell a widget, instead of getting paid a onetime commission, you get an ongoing commission for that sale month after month. Sell two widgets, get two times the residual.

Secret #6 – Multiplex Income This is the income that you receive when you run your own business and receive your income from the work and efforts of others.

Secret #7 – Positive Mental Attitude I used to think that keeping a positive mental attitude was the key ingredient to success and achievement, that if I maintained a PMA, success was sure to follow. I knew people that cranked up the positive attitude so much they glowed but were complete financial failures. While a PMA is extremely important, the ACTION needed in secret #1 is the true key. Couple PMA AND ACTION together and you have a solid foundation for success.

Secret #8 – Compound Interest Compound interest refers to the fact that whenever interest is calculated, it is based not only on the original principal, but also on any unpaid interest that has been added to the principal. The more frequently interest is compounded, the faster the balance grows.

A good lesson was learned on the golf course when two friends decided to “make it fun” by placing a wager on each hole. The bet was for a dime and on each hole the bet would double. Let’s do the math. The first hole is ten cents. The second hole is twenty and the third is forty cents. Not bad, just a friendly wager, right?

By the time they reached the ninth hole the bet was for $25.60. OK. Still not so bad for golf buddies. The tenth hole was $51.20, the eleventh hole was $102.40 and the twelfth hole was for $204.80! Now, if we were golfing this game, we would be getting a bit nervous. Hole 13 - $409.60. Hole 14 - $819.20. The bet continues to rise. By the 18th hole the bet will be a whopping $13,107.20!

THAT is the power of compound interest.

Dave Capra "The Debtonator" is author of "Your Guide To Perfect Credit", a radio show host, columnist and certified debt consultant. For information contact The Debtonator at 312.674.4861 or email thedebtonator@yourguidetoperfectcredit.com
http://www.yourguidetoperfectcredit.com http://www.franklindebtrelief.com
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I think this is a classic article. Taking action, accepting responsiblity, planning, and home based businesses are all key to financial independence.