Looking for financial tips to achieve your financial success? Then this article is for you!
Here are some tips or financial keys to success. With this knowledge you can start to walk on the road to financial freedom.
There are three major allies for your financial success. These are: Time, Compound Interest and Leverage!
Struggling for financial freedom? Don’t lose heart. There are really obstacles for your journey to financial freedom but you also have your strong “allies” by your side. They are there, and just waiting for your call.
Time
As the old saying goes, “TIME is GOLD”. Yes, TIME is money.
Time is the most taken-for-granted resource. This is very clearly demonstrated by what is negatively attributed to Filipinos as “Filipino time”. We are always looked upon as perennial latecomer that is no longer funny. We don’t seem to understand that every time we are late or an appointment and cause other parties to wait, we are actually stealing from them their own time resource!
One economic study concluded that punctuality was one of the major successes of Japan. People there, especially businessmen, are seldom late for their appointments. Consequently, they almost always, perhaps by force of habit, make sure they always meet their business deadlines. Time may seem to be an insignificant factor, but the reality is time is money.
Always remember that this is our first ally: “Time”. Time, the greatest equalizer is on our side. All of us, rich or poor, have the same amount of time. Twenty-four hours per day, seven days a week, twelve months a year. Time is a resource. It is particularly a great ally in planning for you financial independence.
“For everything there is a season, and a time for every purpose under heaven: ”
- – Ecclesiastes 3:1
The perfect key is timing: you must know when to choose, to invest, or to divest.
Compound Interest
Your second ally is Compound Interest. Compound interest is one of the man’s greatest invention. Great wealth can be created if we allow the power of compound interest and time to work for us. We see this power every day around us. Investments allowed to compound can help you beat inflation.
Imagine your money increase after sometime while doing nothing? Compound interest is a good ally if you know how to handle it, but will be a great burden if you misused it. Just like uncle Ben’s famous quote in my favorite Spiderman movie: “Great power comes with great responsibility!”. It will be better if you put your money in banks instead of putting it under your pillow or putting it on a piggy bank. Piggy banks will not give you any interests like banks do.
…then wherefore gavest thou not my money into the bank, and I at my coming should have required it with interest?
- - Luke 19:23
Leverage
Lastly, another powerful ally within our reach is leverage. It is sometimes referred to as Good Debt. Debt used for productive investments increases your financial returns even with very little capital. Leverage allows you to grow your investments five or even 10 times faster than if you were to do it alone.
Leverage refers to people as well as to money. Pooling of resources multiplies your gains while minimizing your risks. Legitimate multi-level marketing and business systems are also other forms of leverage. They allow you to earn through your “down lines” even without being active in selling.
These will be your allies to ensure your financial success. They are on stand-by and just waiting for your call.
The key to financial independence lies in being able to plan, save and build wealth using what you have now.
You can also read the following Green Stickman™‘s related articles:
- The Power of Compound Interest and Rule of 72
- Guides in Setting a Financial Goal
- Obstacles in Getting Rich
- Financial Life Stages
- What is Financial Indepence?
Financial Freedom e-Books that may help you:
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[...] You can also read the following Green Stickman™‘s related articles: – Financial Life Stages – Allies to Financial Freedom [...]
[...] You can also read the following Green Stickman™‘s related articles: – What is Financial Independence? – Allies to Financial Freedom [...]
I have to disagree with your third point a little. Leverage = Risk. So try this instead, save (compound interest) then leverage (invest) part of your savings when you have a sufficient emergency fund. Vegas is leverage, just really stupid leverage but few do find success. This economic downturn has seen huge bankruptcies and foreclosures due to leverage. Some of the most successful companies (Apple, Disney) do not carry debt, but only invest profits. Those who will rebound the quickest, and survive this recession, will do so because they avoid debt leverage and thus had a strong economic foundation.
To go along with my last comment, here’s the Bible verse I’d use for debt leverage: “The borrower is slave to the lender.” (Proverbs 22:7)