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Financial freedom starts with just a dollar

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“The economy has no effect on one’s success. It is our actions in aggregate which affect our economy.’ –Brendan Palmer

Financial-FreedomThere are some things which are common knowledge, but we don’t take them seriously until someone tells them in a way that opens up the mind and then you say “Ah-ha!”

That is how many of the participant felt after Brendan Palmer finished his presentation at last week’s BusinessLink networking breakfast meeting. His subject was “The importance of financial literacy.”

Brendan explained the difference between Yuppies and Financially free people, Yuppies (Young Urban Professionals) can be seen by their flashy watches, expensive luxury cars, label clothing and expensive habits. Those with financial freedom don’t show off their wealth, as it is in safe investments like property, shares and businesses. They are down to earth and buy clothing from ordinary stores like Edgars etc, and groceries from OK, TM and the local grocery store.

Typical yuppies get broke in a short time because they are heavily borrowed and spend more than they earn. Financially free people have managed to invest in assets that generate more money than they spend- in other words they make money while sleeping.

Being financially free or poor has no relationship with being born poor or living in a poor country. The difference is in your ATTITUDE towards money.

Financially free people have learned and developed certain habits:

  • They respect money- refusing to spend unless it’s really necessary
  • They make money work for them instead of working for money
  • They pay themselves first by saving / investing at last 10% of every penny they get
  • They seek advice on money matters
  • They make budgets and stick to them
  • They are committed to financial freedom, working hard until they achieve their goal
  • They take advantage of compound interest, which enables money saved to grow quickly
  • They avoid debt (if they have to borrow, it should not exceed 20% of their earnings)
  • The pay for assets with cash rather than debt
  • They buy cheaper brands
  • They know that wealth takes time to accumulate and are therefore patient and committed

This is not new knowledge; we have all heard it before. The problem may be that we never committed ourselves to the goal of financial freedom and are not seriously financially disciplined.

If you commit yourself to achieve financial freedom, educate yourself and become financially literate, then adopt the habits necessary as outlined above. Get your spouse or[partner to commit together with you for support. In ten to twenty years you will be financially free.

Please share you thoughts on this topic at http://smebusinesslink.com. Click here to join the BusinessLink mailing list and receive my free weekly newsletter.

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3 Comments

  1. trust nzuma says:

    i have a business plan but i am still waiting for the right time,environment,opportunity etc. Now that i have been inspired, i will start with the dollar i have.

  2. ashberry frene says:

    wise words

  3. Munyaradzi says:

    Thank you for the insight on financial freedom which starts with a dollar. We make excuses about our backgrounds, economy, and now aftermath of the general elections. Wrong its all about us. Our attitude, hard work, pushing on against all odds. Being good stewards. Currently i realisr i am owed a lot of money by people who can not pay me. Friends, tenants, institutions, rbz and i have a lot of commitments i can not fulfil. I need start another business of my own and will keep linked up with yr resourses. Thanks

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