How to create wealth and get Financial Freedom

Although many people have become very wealthy through starting a business, it’s not always a guaranteed route to wealth. With many new enterprises failing in the first year , the dream of financial freedom can sometimes become more of a nightmare. Most of the top earning entrepreneurs in the world have had to deal with their fair share of failure for many years before they started to see any success or wealth. The book shops are full of stories of rag to riches and back to rags again, so why is it that some people have such a steely resolve to dust themselves down and start over.

This is really the key to what separates those who succeed and those who fail, these are people with a mindset that will not accept failure, they will only see their end goal, they know what they want and they will continue on until they get it, despite any obstacle that gets in the way even if it means starting over again .

Sadly many of the new business owners who fail in the first year will probably go back to a regular job and possibly never start a business ever again, even more so if the experience has been too painful or the financial loss too great.

So if we take away the other routes to wealth such as winning the lottery, inheriting money, or being a highly paid professional, then for the average person with limited qualifications starting a small business can still be a realistic way to build wealth. So if anyone is to succeed in business we know a positive mindset will be very important as will good planning. Many new start ups will fail simply because they have run out of money. It can be very easy to put the blame on the business model, the product or many other reasons when the real reason is just poor cash flow & bad forward planning. With many new businesses failing to set aside money to pay taxes, wages or to cover overheads it can be easy to think you are doing better than you really are. It will usually be a crisis like not having enough to pay a supplier or a tax bill that will end the life of a business that was a great idea with good products but failed in having suitable cash flow strategies in place.

If we take this same set of problems that a new business will face into our own personal finances it is easy to make comparisons. A large percentage of the workforce in the world will live week to week on an average pay check, many will have no savings or any sort of safety net put by if they lose their job. Many people will have a lottery mindset that relies on “ something will always turn up“. Well when that something that turns up is not so good, like ill health, unemployment or just reaching old age with no savings in place then most would agree that some form of forward planning is needed to create wealth and be prepared for any uncertainties that life can throw up.

Of course we will all get some advice throughout our lives from parents or friends , but good sound financial advice is something many will reject. As a young person we will see old age as something that is a long way off , so pensions and investments are probably the last thing we want to think about. In our middle years we will have other financial commitments to deal with such as raising a family and running a home, so once again any thoughts of putting an investment strategy in place will take a back seat.. Then come the mature years when we feel we have left it all too late to take any action, so once again we fail to do any forward planning. Of course all of the above excuses are relevant to our lives at any given time ,but the reality is that taking any action at any age is better than taking no action at all.The real key to financial freedom is to get the right type of financial education. Anyone wishing to build real wealth will need to put into place a good but easy to follow plan that requires regular input and sound advice.