Seven steps to financial freedom in 2021 and 2022

Welcome you go to kingtrader.net, today I will show you the best 7 steps to have financial freedom

Is there a formula for wealth creation? Do all self-made millionaires take the same steps to amass their fortunes? If we were to do an in-depth study of how self-made millionaires think and act, would we find some common clues that we can learn from? The answer is yes.

Although one millionaire may have made his money in real estate while another made her money providing children’s education, I would bet that all of them share similar wealth-creating skills and took certain similar steps that allowed them to build up a large personal fortune. Of course, there are individuals who seem to have oodles of money without having any of these wealth-creating skills. They are usually people who inherited their money, won the lottery, or have a marketable talent like singing. However, time and again it has been proven that if they do not eventually learn the necessary money skills, or have a trustworthy and money savvy manager, they will usually end up losing everything they have. Even famous 60s’ Hollywood singer-actress Doris Day lost her fortune when her husband-manager cheated her and ran off with her hard-earned money.

So, let’s get started on learning the seven-step formula to financial abundance. These are seven essential steps, each one representing a wealth-creating skill that all self-made millionaires possess and practice.

Step 1: Adopt the Million-Dollar Mindset

First, learn and adopt the mindset of a millionaire. Millionaires think very differently and that is why they take different actions and produce vastly different results. Self-made millionaires have a different set of beliefs and habits that allow them to see opportunities where others see problems.

Millionaires see learning experiences, where Mister Ordinary sees failure. The moment you adopt the beliefs and habits of a millionaire, your perception of the world will change completely and you will realize that there are money-making opportunities everywhere and every day around you.

Amazingly, these are opportunities that you were once quite blind to

Step 2: Set Clear Financial Goals

Wealth never happens by chance. It always begins with a clear goal in mind. At one point of time in their life, millionaires always make a decision to become rich. However, whenever I ask most people what their financial goals are, I often get a blank stare. When I ask people to write down their target income or how much they want to be worth, the standard answer I get is ‘as much as I can get’. This is a major reason why they will never achieve any level of wealth because they have no clue what it is. Unless you have a specific figure to focus on, you will never be able to develop a strategy to achieve it.

If you are earning $4,000 a month and set a target to earn $20,000, it is not just about working five times harder. It is a completely different strategy. Similarly, if you choose to earn $40,000, it is again a totally different strategy! Only when you are specific abut how much wealth you want to create, then you will come up with a practical plan to execute it. No matter where you are now financially, any target is possible as long as you use the right strategy.

Step 3: Create A Financial Plan

Once you have set specific financial targets of how much you want to earn and how much money you want to accumulate, you can then develop an effective plan to achieve it. Goals by themselves are nothing but pipe dreams. Only when you create a plan, have you made your goal a possibility? The moment you start taking action on your plan, your dream becomes a reality.

For example, if your goal is to accumulate a $1 million portfolio by a certain date, then you must develop a plan as to how much you must save and invest each month, the rate of return you must get from your investments and the estimated time it will take you. If your goal is to triple your income to $15,000 a month, you must have a concrete plan as to how you will increase your primary income stream and the number and type of additional income streams you can add on.

Most people never achieve their financial dreams simply because they have no financial plans and haven’t got a clue as to how to create one. They just work hard and hope that everything will be okay one day. You cannot leave your financial future to chance, you have got to plan for it. While there are great financial planners around who can give you some sound advice, you must ultimately take responsibility and develop your own plan! After all, it is your life we are talking about.

Step 4: Massively Increase Your Income

After developing their financial plan, most people tend to become initially disheartened. They look at their plan and realize that with the amount they are earning and saving right now, it will be decades before they see any big money

It is therefore important that you learn how to accelerate and turbo-charge your financial plan by taking steps to massively increasing your income. When I talk about increasing your income, I am not talking about a 5%, 10% or even 20% increase, I am talking about doubling, tripling, or even increasing your income by five to ten times? Is this possible? Yes! And it is definitely achievable without you having to quit your job or risking a lot of capital (your savings) in a business venture.

Step 5: Manage Your Money & Reduce Expenses

Many people think that by increasing their income, their wealth will automatically increase. Unfortunately, increasing income is only one side of the wealth equation. After all, there are people who earn $2,000 a month who are broke and there are those who earn $20,000 who are still broke. The reason is that when we don’t manage the money we earn, our expenses will always rise to our level of income, wiping out any surplus we have! Or worse, we start spending on credit lured by easy repayment schemes. Millionaires become rich not because of how much they earn, but rather how much they are able to save and invest.

Step 6: Grow Your Money at Millionaire Returns

By increasing your income and reducing your expenses, you will find that you will be able to accumulate a surplus of funds that you can use to help you build your fortune. You need to do this because, no matter how hard you work and save, you will never be able to create phenomenal wealth unless you learn how to put your money to work for you. Through the power of compounding, you will be able to take small sums of money and build it into huge returns over time.

All self-made millionaires attribute a huge part of their wealth to their investments because they know that just working for money will never make them rich. It is when you allow your money to make you money that substantial wealth can be created.

If you’ve had the bad experience of losing money in stocks and mutual funds and resigned yourself to believing that the only safe way to invest is to put your money in the bank and get 3% returns, don’t worry. The strategies that I will be sharing carry minimal risk. Remember self-made millionaires are shrewd risk takers and this is very different from being gamblers.

Step 7: Protect Your Fortune

There is no use working hard to build your personal fortune only to see it all taken away from you. There are many people who have taken decades to build their fortune only to see it wiped out by an accident, unforeseen illness, or through an unexpected lawsuit. Self-made millionaires engage professionals like insurance advisors, lawyers, and accountants to help them build a financial fortress so their wealth is protected from potential creditors, plaintiffs looking to sue, and the government who may take away a big chunk of your wealth through a whole range of taxes that you may not have even heard about.

As it is beyond the scope of this post, I highly recommend that you engage such professionals who will help you use a variety of tools like insurance, trusts, offshore accounts to ensure no one or nothing can touch your wealth once you have built it.

So there you have it, an overview of the seven steps that you must take towards financial abundance. Let’s begin to learn each of the steps in-depth, starting with…