THE BEST LIFE OF ALL
The Secret of Financial Independence.
Creating a Vehicle
All people who are in business, or have a handle on their financial affairs, are attempting to secure their financial independence, because once you have created this, you have free time to do as you please. If you do not do this then at least part of your life – perhaps the major part – will be taken up with earning enough money to pay the bills.
To become financially independent, you need to create a substitute to the company who pays you as an employee. In other words a vehicle that has been set up to pay you the money you need to enjoy your own desired life style. The amount you need varies from individual to individual, based on their requirements and preferences.
The vehicle you need to create is an asset holding company, which you own, that has investments and activities that generate surplus income, which it pays to you. This company can own any type of assets – stocks and shares, properties, copyrights that pay royalties, collectibles (art works and antiques), cash invested for its interest, and ownership or part ownership of businesses managed by others, perhaps family businesses. This company must require only a limited amount of your time to run – otherwise you will be working for it.
In order to generate the assets and income to create such an asset holding company, you first of all need to generate the money to do it.
A Vital Factor
The way to create large sums of money is to create or buy something and sell it.
This can be a royalty generating product (books, music, films, video, franchises, inventions etc.), or a business. A business is the most common way people generate wealth, but many of them miss one vital factor that keeps the slaving away. It is this: A business that relies totally on you being there every day will never free you. You have to create a business that can run systematically without you being there, so you can sell it as a money making machine to someone else. If you are the integral part of the business, and it cannot run without you, then you are stuck.
The way out of this one is to either build a business which you can sell as a running operation to someone else, who can step in and take over and it still turns out profits, or, if you are unavoidably required to be present, then to use the profits that the business makes to set up the separate assets company, described above, as quickly as possible. It must be separate from your business if you are in the position of having to be there. Obviously a person who is an employee falls into this category as well. They too must use their excess income to build an asset generating company structure, which will be there when they have built it to the degree where it can pay their living expenses. Discuss with a good chartered accountant who has such a company of their own, the way to do this. Don’t discuss it with anyone, qualified or not, who is not doing it already.
The Three Fundamental Steps to Permanent Wealth.
Always Generate More Income that you Spend.
This old adage is so obvious that it is often overlooked, particularly in times of easy borrowings. Don’t spend more than you earn, unless it is to borrow to purchase income producing assets. One of the most useful attitudes to develop, is to always buy low and sell high. Markets always fluctuate and there are always bargains to be found. By developing a mindset of asset creation at an ‘excellent value purchase price’, you will shave years off the time it takes to become independently wealthy.
Consistently Increase the Amounts you Invest
It is very important to decide at the beginning of your career, to put aside an amount for savings. Many people do this. But you need to develop more than a ‘savings’ mindset, because the word implies a static amount, that builds based on the interest it earns. You also have to work for savings as they are usually a portion of wages. Start to call your savings ‘my investments’. This will instruct your mind clearly that these monies are an independent asset that builds every year, and eventually works for you, rather than you having to work to create it. Have the attitude that your investments are an independent structure which you build and increase each year.
Invest in a Variety of Assets
It is essential that you don’t put all your eggs in one basket. They must be spread around in property, shares, cash, collectibles and your own business. And within these areas there should also be a variety of choices. Today, in the world economy changes are more rapid. It is impossible to keep up with everything, so if any area of your portfolio collapses, it can be compensated for by your other investments. Look to the areas of new growth and mix those with the traditional blue chip investments. Of course your own business can be the greatest cash generator of your life – if you master business.
The Future of Income Generation.
There has been a massive structural shift that will continue due to the ‘internet superhighway’. Companies have had to radically change or collapse.
The developed world has entered the fourth wave of the economy with the majority of people employed in the information sector. This means the trends are now in Leisure and Tourism and Outer Space industries.
Important Factors for Continuing Employment
The world has been going through a period of world parity in wages, causing tremendous relocation of industries and massive job losses and retraining requirements for the developed world. Self education is vital for continuing employment. Teenagers leaving school today will have to retrain themselves ten or even times during their working lives. This will make for a far more interesting life for them, and present tremendous opportunities. As long as they continue to learn and grow as people.
There has been an increasing split in the have and the have nots. The middle class will shrink further. Education, computer literacy and self development are the only solutions, in the free market economies, for the problems of poverty and unemployment.
There will be an end to mass production employing huge numbers of people. Computers and robotics are now taking over these functions, even on very small scale industries. This will cause the arising of ever more specialist, boutique companies making small runs of individual products or even unique items. People will demand things exactly to their requirements. The catch phrase will be ‘specialist supply’.
The shelf life of products is now six to nine months, so requiring a constant updating of product lines and the astute examination and predictions of trends. Managers have to be well informed and keep up to date with what is happening. It is a job in itself to be able to predict future trends.
The qualities required for the future are now creativity, flexibility, efficiency, fast decision making, good communication skills. These all spontaneously arise from personal and transpersonal growth.
Marketing – The Key to Success
Your ability in the marketplace determines your income and therefore lifestyle. The marketplace is entirely driven by the demands of consumers. Confidence of consumers is the key to a buoyant economy. Everyone who is on a wage or salary is in business. They are selling their time and energy and skills to whoever pays them. They are a business of one.
All businesses are marketing businesses. Marketing skills are the sole key to success. Without understanding marketing you will never be successful. For future employment you will need to be able to successfully market yourself or your product or service. Always ask yourself the question ‘why should anyone buy what I have to sell?’. Whether it is as an employee – your skills, abilities and talents, your presentation of yourself, the way you behave, your reliability and responsibility and so on – or as a company you run. Write out a list of the advantages you are offering, whether yourself, or your product/service.
All those who pay you – your customer (your employer) or customers (if you own a company), need to be educated and reminded about what you have to offer. Never presume that they know. It is wise to occasionally offer a free educational service about your product/service, and any new skills you may have developed, and a free trial of these. If they can see benefits for themselves, then they will willingly pay you for these benefits.
Also keep in mind that many purchases are based entirely on emotion. Emotion sells. You are often selling a feeling rather than a product or service. People like to buy things that give them an emotional experience. So give rational reasons for emotional choices. Always sell a result for the customer rather than a product, or a service, or your own skills. People must be informed of what’s in it for them. After all it is their money.
So sell the benefits of doing business with you: make these benefits vivid, clear, obvious, understandable, rewarding and, if appropriate, emotionally based. The media, particularly the tabloid style, is entirely based on selling emotion.
Above all study marketing thoroughly from people who are obviously successful.
Developing Yourself for Creating Wealth.
The key to financial security is to focus on becoming a wealth creator, so list the seven reasons to be working or running a business.
Develop the skills of entrepreneurship. (A self starter).
The traits of being a successful self starter are: Centredness – Clear Goals – Willingness to risk – Effective Thinking and Thorough Planning.
See work as an opportunity for personal development and creativity. Give more value than expected, Constantly upgrade and improve what you have to offer.
The Easiest Ways to Wealth in the next Decade
Computers, Software and Apps
More millionaires are being made from this area than any other. From the richest man in the world, to the tens of thousands of millionaires in Silicon Valley, the easiest method to get rich quick is in computer products, internet services and new associated technologies.
The Internet – and anything to do with it.
Distribution is the key to wealth and the Internet is now the distribution method of this age. The great advantage is that any individual is able to set up ‘shop’ on the world wide web and immediately have a customer base of hundreds of millions of people. Unlimited products and services are required for it. Become an expert in it.
Leisure, for most people, includes travel and seeing, and doing, something new. Tourism is a major powerhouse of the economy. Anything to do with it, if presented at a high or unique standard, particularly eco-tourism, is very popular.
The Arts and Entertainment.
The arts is a major area of employment. It includes all creative works, whether on an individual level or a large company. People want to be inspired and entertained. Very few people attempt to enter this field with awareness of people’s desires. The most successful identify what people want and present it to them. The variety of possibilities is endless. The secret is to examine what works and duplicate it with your own personal variation. The sign of a great work of art is that it crosses all borders and classes and communicates to everyone. A bad artist or narcissistic entertainer, will only do what they want to do, usually pouring their inadequacies and neuroses onto an unsuspecting public and then blaming the public if they are not appreciated.
As the baby boomers get older – and richer (people over 50 will control 80% of the wealth) – they require services to take care of their money, their daily needs, accommodation and anything which makes their lives easier, more enjoyable and more secure. Domestic services, catering, rejuvenation centres, organic foods, supplements, alternative therapies, the latest information about health are all excellent growth areas. There are tremendous opportunities for benefiting from these people, whether as an individual or a company.
New skills for the workplace and to keep up with technology. Languages, computer skills, niche interest areas.
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