5 Steps to Accelerate Your plans and Achieve Financial Security Faster

5 Steps to Accelerate Your plans and Achieve Financial Security Faster

What does Financial Security mean and how can you accelerate your plans and achieve financial security faster?

Financial security is the peace of mind you experience during happy times as well as testing time. You aren't worried whether your income will be able to cover your expenses this month or in the coming future.

In addition Financial security is also about having enough of your money saved to tackle emergencies and be able to provide for your future goals. It’s not the money that you have to pay back.

Without further delay let us dive into the 5 steps.

The following Actionable is based on the book –

Money, Master the Game

 (7 Simple Steps to Financial Freedom) by TONY ROBBINS.

STEP # 1: Save More Spend Less

Actionable to Achieve Financial Security Faster:

(a) Go through your monthly expenses – daily shopping, weekly outing, or daily commuting. Look at the costs you can avoid. Strike out those costs from your list and start saving that money. Don’t look at the amount. Even if it is a small amount it doesn’t matter. It’s all about developing the habit of saving.

(b) Reduce or totally cut down on consumption of certain things. For example – a weekly trip to Mall, having coffee regularly at coffee joints, buying new Smartphone every six months or every year. Saving 1000/- Rupees per month can amount to 60,000/- Rupees in 5 years.

STEP # 2: Improve Your Earning Potential and Earn More

Actionable to Achieve Financial Security Faster:

(a) Develop a new skill that will help add value to your job or business. This way you can command a higher salary and earn more.

(b) Start a side business. This way you can earn more and add to your monthly income.

(c) Think of switching to another industry if you see the opportunity to earn substantially more than your present industry.

(d) Think of ways that will qualify you for a senior post in your job or apply for a new job with better-earning potential.

STEP # 3: Save on Paying Fees and Taxes

Actionable to Achieve Financial Security Faster:

(a) Taxes can take away a large chunk of your income. Invest in instruments that offer you tax rebate under various sections of Income Tax Act. This way you will pay less in tax and you will have your money working for you. In a way it will be a WIN-WIN situation for you.

(b)  If you are paying fees for certain things, think of creative and right ways (ethical ways) by which you can reduce the fees. Please don’t try to cheat and rob money that you were supposed to pay.

STEP # 4: Change Your Location

Actionable to Achieve Financial Security Faster:

(a) Think of moving out to a new location or even to a new city that offers a better lifestyle without asking you to pay more.

(b) Think of replacing your branded and expensive things with something that looks expensive but is not. You might have to do some hunting but you will find something that is not branded but looks good on you. For example – instead of buying a branded three thousand rupees shirt you can go in for a thousand to twelve hundred rupees shirt that makes you look and feel equally good. We often do this.

STEP # 5: Focus on Getting Better Returns on Your Investment

Actionable to Achieve Financial Security Faster:

(a) Make your money work for you by investing in tools that offer better returns on your investment. For example – If your money is in savings or FD account, learn to invest it in Mutual Funds or any other instrument that will offer better returns than you FD or savings.

(b) Depending on your risk appetite always be on the lookout for investments that can give your better returns than what you are enjoying.

In Conclusion

Just saving money is not enough; you need to make your money work for you by investing them in instruments that will bring you better returns. Make this a habit – have more money and invest it!

If you give enough time to your money you will surely accelerate the process of achieving your financial security faster that will last with you your lifetime.

Other Resources You May Want to Read:

ACTIONABLE & LEARNINGS from the book RICH DAD POOR DAD by Robert Kiyosaki.

Read the 1st Part Here : ACTIONABLE - The Rich Don't Work for Money

Read the 2nd Part Here : ACTIONABLE- Why Teach Financial Literacy?

Read the 3rd Part Here: LEARNINGS - Mind Your Own Business.

Read the 4th Part Here: LEARNINGS - The Rich Invent Money 

*******************