According to insurance industry statistics, of one hundred people who start work at age twenty-one, by age sixty-five, one will be rich, four will be financially independent, fifteen will have some money put aside, and the other eighty will be still working, broke, dependent on pensions.
Why do you think this happens, it is not because the rest of the eighty people who go broke do not have higher paying jobs, or do not receive money from other source frequently.
There are more opportunities to achieve wealth and prosperity today for more people and in more different ways than have ever existed in the history of man. It has never been more possible for you to achieve financial independence than right now. But you must make a decision to do it, and then you must follow through on your decisions.
But before I reveal to you the secret to financial independence, for just a moment, let ask ourselves, why do people go broke even though they worked all of their life time.
The reaaon;
When you get a job or probably any time money gets into your hand, the first thing you think about is how you can spend this money. Your mental equation is Money = Enjoyment.
It is quite common for many people, when they are unhappy or frustrated for any reason, to go shopping.
They unconsciously associate buying something with being happy. They buy lots of things they don’t particularly need because they unconsciously associate spending with happiness.
Now the Secret; SAVING AND INVESTMENT.
The starting point of achieving financial independence is to discipline yourself to rewire your attitude toward money. You need to reach into your subconscious mind and disconnect the wire linking “spending” and “happiness.” You need to then reconnect that “happiness” wire to the “saving and investing” wire.
From that moment on, instead of saying, “I feel happy when I spend money,” you will say, “I feel happy when I save money.”
To facilitate this shift in thinking, open up a “financial freedom account” at your local bank. This is the account in which you deposit money for the long term. Once your money goes into this account, you resolve that you will never spend it on anything except the achievement of financial freedom. This account should be separate from any other account you might have. It is solely for your financial independence. And you have to save throughout your lifetime. The amount to put in this account will depend on you, but I suggest that if you are new to saving, it is good you start small.
Finally, I will leave you with this one best formula to saving.
The 1 Percent Formula
Begin today to save 1 percent of your income and learn to live on the other 99 percent. This is a manageable amount. This is a number that you can get your mind around. It requires only a small amount of self-discipline for you to save 1 percent each month. If you can earn as little as Gh 100 or as much as let say Gh 5000 in a month, irrespective of your income, just save one percent of it monthly.
At the end of each day, come home and put your daily amount into a box or jar. Once per month, take your accumulated savings down to the bank and put it into your financial freedom account. This sounds like a small beginning, but remember that “a journey of a thousand miles begins with a single step.”
In no time at all, you will become comfortable living on 99 percent of your income. At that point, you raise your savings level to 2 percent of your income per month. You then adjust your lifestyle to live on 98 percent. In no time, this will become a habit; you will find it automatic and easy to live on 98 percent of what you earn.
Month by month, you then increase your savings level by 1 percent. By the end of the year, you will probably be saving 10 percent of your income.
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