Just as you should not build a luxury home on a shaky foundation, I HIGHLY-RECOMMEND THAT YOU DO NOT BUILD YOUR FINANCIAL FUTURE on a shaky foundation. From my experience Robert Kiyosaki's belief concept on transforming your life from poor to wealthy is the best. For those of you who have not yet read Robert Kiyosaki's "Cash Flow Quadrant," I would recommend that you would read this great book today, but to save you the read here is the synopsis (that does not give this book justice). His observational theory of the journey to wealth is that they all start out of as EMPLOYEES. Then through discontentment and ambition, they ultimately strive to become SELF-EMPLOYED. If you are interested to know more, take a look at Foundation Financial Group.Then through frustration and maturity, they become hands-off master-delegators that become BUSINESS OWNERS. Then after we earn enough excess cash, they begin begin to become INVESTORS.He calls this transition from EMPLOYEE to SELF-EMPLOYED to BUSINESS OWNER to INVESTOR the "Cash Flow Quadrant". In order to begin making this transition you must make 7 moves. And the key to these moves is this, NOTHING WILL MOVE UNTIL YOU DO.Move 1: Form an LLC - My friend you are going to have to form an Limited Liability Company. You cannot use your business to invest if you don't have a business. Form this business today. If you don't know what you will do, just register yourself as a consulting business and figure it out later.Move 2: Start A Successful Business or Buy A Successful Business - You have to start building or buying a business now. Next year is too lately already. How do you start? I highly-recommend that you buy into an existing successful franchised business if you have no idea what you want to do. Why? Because when you buy a franchise, you are buying a highly-regulated entity that has a proven track record of success using scalable systems that produce quality products and services that will make you money. You could spend 10 years starting businesses that fail. The U.S. Small Business Administration consistently reports that 9 out of 10 small businesses fail. That does not have to be you, but it will be you if you cannot build duplicatable systems or if you are unwilling to. Having built award-winning systems over the years, I personally would rather buy into an existing entity. It will save you the head-ache and the heart-ache. Now if you are passionate about delivering a product or service and if you are crazy enough to believe that you will be able to build systems that work, then I HAVE FAITH IN YOU AND I ENCOURAGE YOU TO TAKE ACTION. What are some good franchises to buy?1) Subway - These are everywhere, because people like them. I literally eat them nearly every day. Does it cost money to purchase this customer magnet? Yes. Does it make money? Yes. Is it right for you, I don't know. Look into it and make a decision.
2) McDonalds - These are everywhere as well. When you throw up the Golden Arches people will flock to your business. Why? Because they are consistent. People from Mexico to China to Delaware go to McDonalds. Does it cost alot of money to buy a franchise? Yes. Is it for you? I don't know. Look into it and make a decision.
3) Oxifresh.com - These guys are a carpet cleaning powerhouse. Their turn-key system allows investors to purchase franchise with very little investment. Can you make great money cleaning carpets? Yes. Is it for you? I don't know. Look into it today and make a decision.
4) And the list goes on...Move 3: Begin Relentlessly Obtaining Practical Knowledge (and begin rebuking general academic knowledge):I can see a value in having an MBA, but I can see more value in learning how to run a business. Read "Think & Grow Rich" by Napoleon Hill at https://www.naphill.org, read "21 Laws of Leadership" by John Maxell, read the "E-Myth" by Michael Gerber and then read 'Rich Dad Poor Dad" by Robert Kiyosaki. Do you have to read all of these? Yes. Study the rich and do what they do. But you are going to have to immerse yourself on practical on-going education. Don't make excuses. Unplug the TV. Turn off the phone. Quit your bowling league and begin learning.Move 4: Get Personally Debt Free
Endless studies have continued to show time and time again that taxes and interest are the biggest expenses for most Americans. Just stop and think about that for a second. After paying off your 30 year mortgage, you will have paid for your house twice. After paying off your car, you will have paid for your car nearly twice. Imagine going on the parade of homes with your significant other when the real estate agent grabs and quietly whispers in your ear, "Now all of the house prices you see hear are actually half of what they will cost you." It's sanity.If you ever want to build profound levels of wealth, you must decide today that you will no longer borrow money for things that do not make you money. I know that it seems hard to believe that most of Americans millionaires are first generation self-made millionaires, but this is the truth (for more information about this phenomenon visit - https://www.thomasjstanley.com)My friends most of today's millionaires grew up in the poor or middle class part of their local community, they lived frugally, the built businesses, the bought real estate and stayed busy working on their plan. Then somebody found out that they weren't so poor anymore. You can do this to.Move 5: You Must Save 20% of What You Earn (minimum)
I'm sure that you have heard the phrase, "it takes money to make money." And while I do believe that you can build a considerable amount of sweat equity for yourself and your business, the reality is that you will need some capital to realize opportunities. When I ran the DJ Connection I always loved to hear about different DJs that were "getting out of the business," because this meant that I could buy their gear for pennies on the dollar. Because I had cash, I could always take advantage of these opportunities.Move 6: Decide That You Will Not Deviate From Your Master Plan
As you start accumulating some money, you will start to notice that the temptation to buy things that you don't need will always be there. The more money you have, the more you will be called by salespeople trying to convince you that you can simply not afford to miss out of this incredible opportunity or that incredible opportunity. MLMs, country club membership sales people and those always fun time-share people will come calling. The Kirby vaccum guy will knock on your door, the designer drapes and plantation shutter people will knock on your door, the reverse osmosis water filtration people will knock on your door and the personal life coaches will come calling. Do not say yes to their offers and do not deviate from your plan. Stay the course, it will be worth it.Move 7: Decide That You Will Never Become An Employee Again (although you may work for others)
The differences between what an employee and self-employed person pay in taxes are dramatic. The tax laws are different and the mind-set of each is very different. Employees want to have as much deducted from their checks automatically throughout the year "to be safe." The self-employed person wants to not pay in a dime of taxes until the end of year so that his money will be working for him all year. The employee views a tax refund as a bonus, while the self-employed person view his annual tax bill as a necessary evil and frustrating fee that he must pay for the privilege of doing business in this great country.Tax strategies that may be legal to self-employed people, may illegal to employees. These differences are monumental when it comes to investing. Although many employees cling to their jobs because of their "job security" and because of their "pay check" they actually have much less job security that the self-disciplined self-employed person.As an employee, your money will never work for you. You are working to make someone else money. As a self-employed person, your money will be making money for you. At the end of the day you must be self-disciplined to get ahead and you must be self-employed. Decide right now. Make the mental choice. Will you be profoundly wealthy? Will you be profoundly poor? Or will you be middle class?For more info, visit Foundation Financial Group.