The financial jigsaw puzzle
Image from intentionalwealthinstitute.org
Update: Feedback is that this post on #Financial Empowerment is almost brutal. Sorry, but sometimes it has to be – people in financial crisis are often also in denial. I know – I was one of them! This blog is from my hard-earned and learned lessons in financial empowerment! I needed some ‘hard talking to’ in my time of crisis, and I don’t want you to go through what I experienced, because of my denial!
However, this post is not all bad news! If you recognise your symptoms below, you’ll be delighted with the range of options and solutions. The links take you to even more detail on the solutions available to everyone who needs financial empowerment.
There is an elephant in the room. A great big ugly elephant. We talk about empowerment and self development and personal growth but when someone mentions ‘money’ or being wealthy, too often, thoughts or whispers of greed, selfishness, get rich quick, or some other such demeaning slur appear.
There is even that famous Bible quote:
“It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.” (King James Bible).
However, any quote taken out of context can take on a whole new meaning, such as this one does!
So many people have hidden behind this and other poverty based quotes to make excuses for their lack of abundance, without even realising it. They believe these quotes and old sayings (“life wasn’t meant to be easy” is another!) are actually facts. THEY ARE NOT!
“Take responsibility for your finances or get used to taking orders for the rest of your life. You’re either a master of money or a slave to it. Your choice.” – Robert Kiyosaki
It’s time to say IT IS OK to have money and wealth. It’s NOT OK to be poor and just accept it!
It’s NOT OK to have to worry where the next dollar or the next rent or mortgage payment is coming from. It’s NOT OK to have your child’s next meal in doubt because you don’t have the money to put a meal in front of them.
Why would you NOT have all the money and financial empowerment you need, or want? There could be some absolutely valid reasons. Bad luck. Bad management of a situation. Bad start in life. Got robbed. Got divorced. Got taxed. All valid and perfectly good reasons to not have any money. If you are OK with reasons for not having money that is, rather than the money.
If this is you now, are you planning on staying this way?
If you are unhappy about your financial situation, read on – there is much to learn and much to look forward to!
Is it OK to be broke?
Most teenagers and students visit “Broke” during their high school or university years, just after leaving home. Possibly the best time to visit, when you are young and life has so much promise and you are so enthusiastic about it. You also don’t have family responsibilities then. Enjoy the experience of living on the financial edge, learn the financial empowerment lessons and then get the hell out of there! Life is better with a full wallet!
Let’s look at what it means to be lacking in financial empowerment, for both men and women.
A woman without money in the 21st century in the western world is a woman who has to educate herself and develop a career to support herself, or to be supported by someone else. She must develop an income stream to pay for the necessities of life. If she cannot do this, she has to choose between doing without the necessities of life, or being at the mercy of someone who has them.
Perhaps she will find a husband, someone who will be delighted to take her just as she is, and who promises to support her forever. Lots of women have thought this; many have made wonderful lives being supportive wives for their loving husbands.
But many have found that after a time, their marriage and support program suddenly ended. Perhaps through tragedy, or for other reasons, sometimes divorce. Now, they are older, perhaps wiser, but many are still without an income and a way to pay to live. That doesn’t mean that a divorced woman cannot cope – just that sometimes, the divorce is financially devastating, and they are left with little money and a family to raise, and often on a solo parent benefit or part-time wages.
Financial empowerment for women is vital. Not just for the feeling of satisfaction, but for the independence it brings. Ladies, if you are financially independent, you can choose where and who you want to spend your life with, for reasons other than necessity and somewhere to live. An important goal.
Guys, there is probably nothing more disempowering than looking at your family, and knowing you cannot provide for them. Not being able to pay the mortgage or the rent, rationing the children’s food, losing the car to the finance company, all for the want of a better cashflow.
Image from thewonderfulworldofnothing.blogspot.com
The other side of the coin is great! You feel invincible and powerful when you have financial empowerment. When you know that your financials are OK and that the house and car are paid for, and the family is secure, you feel king of the castle. So you should. Supporting and empowering your family is perhaps the greatest responsibility that most people could ever have.
Financial crisis happens, far too often. It happens to good people, to great people, and to most of the people who don’t understand money and financial empowerment. But there’s also a way through it.
The key to financial empowerment is education.
I don’t mean reading, writing and arithmetic, although they are important. Financial literacy education, understanding the financial empowerment principles that make the money world go round. They aren’t too hard to learn, though they can be harder to put into practice.
“No one lives long enough to learn everything they need to learn starting from scratch. To be successful, we absolutely, positively have to find people who have already paid the price to learn the things that we need to learn to achieve our goals.” – Brian Tracy
The world has changed since I was a boy. Fifty years have made a huge difference. A house now costs half a million dollars here, but fifty years ago, $2500 would have got you one. A car was $500, now it is $40,000. But wages were much less! Fifty years ago, it was 365 shillings per week, around $36. The princely sum of $1,800 per year. Now, in Australia, the average annual wage is $75,000. Prices have increased but so has our income.
What HAS changed is the opportunity level!
In this age of technology and information, a person no longer needs a factory or huge amounts of capital to start a profitable business. Many people work their own business from anywhere in the world they want, as long as they can connect a computer, laptop or even tablet to the internet! As long as they have a skill they can apply, a second or even a primary income is available for anyone, if you become educated in how to market something of value to the world!
Think about your wage. If you don’t go to work, you don’t get paid. No residual income. Think about the rent on a house. The owner could be in Spain, New York or Sydney. The rent still goes into their bank account. That is residual income.
Make money while you sleep. Set up your income streams as businesses at which your presence is not required, fully automated, and the money will flow to you, wherever you are. Click this link for more details and alternatives!
Examples of residual income are:
- Financial investments, shares, term deposits etc. You need a lot of money initially and the Return On Investment (ROI) is from 1% to 5% usually. $1,000,000 at 5% is $50,000 pa.
- Investment property. In Australia, an investment property starts at around $350,000 and higher, and ROI is either negative (profits from tax benefits) or up to around 5% clear.
- Leasing out equipment, rental cars, machinery etc. Lots of money initially but a higher ROI, because of a shorter working life of the equipment.
- A second job? Doesn’t qualify, – no residual income. However, this is where most people look when they need more money.
- A business with employees. If you can set it up so that it makes a profit while you are not there, yes, ongoing residual income. However, bricks and mortar businesses are struggling the world over. Many do not make a profit at all.
There is an alternative, made possible by the technological revolution and the internet. It is possible to start a small business online and set it up to operate globally, fully automated and delivering profits into your bank account, wherever you are. Many are very successful; the operators have replaced their regular income and quit jobs, to live on the ever-growing profits of their fully automated online businesses! Click this link for more details and alternatives!
Examples of online income streams:
- Contracting your skills, such as through ELANCE, or being a virtual assistant
- E-Bay trading, buying and selling items
- Shares and options trading, taking a parcel of money and actively trading with it – be careful of the risks! Only for skilled traders!
- Consulting and providing advice, for a fee
- Website sales of an item, product or service, sometimes digital products or information
- Using a website in conjunction with a bricks and mortar business for mail-order sales
- Writing and publishing online
- Networking of a business opportunity online, building up a global downline network
NOTE: 1-4 are usually not residual income streams although they are internet businesses.
These opportunities are there for everyone. And you don’t have to leave your day job!
If you are also a member of Life Change 90, you can enjoy Personal Empowerment, as well as Financial Empowerment!
Think about this:
Are you earning what you are worth right now?
Are you earning what your family needs right now?
Are you earning enough to fund the dreams of your future, right now?
There ARE answers, and you can find them here. I look forward to seeing you at the top, earning lots more than you are now!
If you feel this article has financially empowered you and you feel it could benefit the financial empowerment of other people, please reblog it, share it with your friends and associates. It might be the day you changed someone’s financial fortunes and future for the better, not just your own!
Til next time, fair winds and full sails,
“Take action every day. It doesn’t have to be dramatic action, but every day, stick with it. Spend time on things that make you proud, that stretch and strengthen you.” – Phillip Humbert
Please also refer to my previous posts on Empowerment:
Empowerment for Men
Empowerment for Women
Empowerment for Teens
Empowerment for Children
What would an empowered man do?
Empowered by love
Empowerment through Emotional Intelligence