Knowledge is the only thing that can move you from where you are to where you want to be......
To get to a destination where you haven been before, you need a map,
When you get the map, you must first locate where you are then where you want to be, then plan or chose the best route.
Sadly, Many people dont even know where they are, have not plan or route, and are just running without direction.
Only a mad man increases his speed when his direction is not clear -- #fact
What will you say if someone walks up to you and asks for direction to anywhere?
You
should first take some steps back, do a quick assessment to know the
level of his/her madness then direct him or her to anywhere or the
nearest psychiatric center.
Thats how we look like when
we keep attending empowering sessions, asking God for blessings etc
when we do not even know where we are financially.
This image below is called a process flow map.
It
is as simple as A B C and its all you need to know where you are. Its
like an Almighty formula as it cuts across everyone regardless of your
income , assets or expenses.
Where:
I - Active income ( Salaries, wages, commissions. You must be involved to earn this income)
E - Expenses
C - Cash flow or Savings
N - Number (it could be a number of months, days or anything)
A - Assets
PI - Passive income ( you work for this income once and earn for life from it, you do not have to be
there to earn)
Process flow map explained:
-
Everybody starts off with their income being lesser than their
expenses. Income must start from zero in everybody's life. Here , you
are heavily dependent on your parents/guardians. This stage is regarded
as the "No Belt"
-
As we get older, we begin to seek some sort of independence from our
parents or benefactors, or, we begin to seek to reduce the burden on
them as money may be lacking. Whatever the case may be, we begin to
hustle, we make just enough to take care of the demands that we have.
Our income rises to be able to sustain us. This stage is regarded as the
"White Belt"
-Finally,
we have gathered experience, qualifications and expertise or even more
hustling jobs, our total income is now able to take good care of all our
expenses and a few not so expensive luxury. We even have a bank account
and the residual balance after each months expenses is increasing month
by month. We have now reached the stage called the "Yellow Belt"
In
between this stage and the next, there is a break that separates the
hustlers from the middle class. In this break, you keep saving and
saving depending on how much is being saved. Many people spend as much
as 20 - 40years in this break because they are not even aware of the
beak, they save today and spend tomorrow and start saving again. Some
increase their expenses so high that the savings are pitiful. You must keep saving till you are able to get your first "ASSET" Then congrats, you have crossed the hurdle.
-
Welcome to the green belt. You have judiciously saved for years,
months, weeks or days. You were wise enough to create an asset, now you
have to nurture that asset to make sure that it begins to produce
"Passive Income". You have to learn how to manage that asset you have,
set the wise rules that will run it, supervise and nurture, don't forget
to keep working on your hustles or job, this isn't time to depend
solely on it. You have to keep experimenting till you find the perfect
rule for it. Your asset should start to produce no matter how low but
being the initial stage, that income is most likely going to be used to
maintain or upgrade it to a better position. This is the "Green Belt"
-
Your asset(s) is/are growing. You can actually make deposits to your
bank account after removing the maintenance fee. You have understood the
hiccups and groomed it past the wobbly stage. However what you take to
the bank may be regarded as peanuts when compared to your expenses. You
are getting there. You are at the "Red Belt"
-
Yes, you did not give up, now you can actually depend wholly on your
asset if you chose to. It is old enough and has the disposal to take
care of
all your expenses. Many people chose to retire
from hustling or working at this stage. Please note that this stage only
offers financial security and financial independence. It can only
sustain you, you will practically have almost no saving because there is
nothing to spare. This is called the "Brown Belt"
-
Some people may never get here if all they crave is the brown belt,
however, for those who are patient and seek higher, they keep pushing
forward, and applying financial intelligence. With time, their assets
yield more meaning,
it can cover all their expenses and still give room for saving.
Meaning that this asset is old enough to give birth to another asset as
you can now save. Savings is very important. The reward is higher now
because in addition to your monthly pay check, you get annual or
bi-annual vacations to unwind if you so desire. At this stage you are
Financially free and can give help to those who need it. You are
exposed, own your time, own your life. 99% of the rich find themselves
here. This is the "Black belt"
-
Many people do not see this level as realistic which is why I stated
that 99% of the rich are in the black belt. Only 2% of the rich see this
level as an actual level but only 1% actually makes it there. Note the
formula used to represent this: PI > nE
That is, Passive income
is greater than what ever number your expenses tend to grow to. This
"n"does not represent infinity however, the owners of this wealth cannot
finish it alone through out their lifetime as long as they do not
launder the money or withdraw it just to flush it down the drain. These
type of people are rich enough to help the entire planet, to write off
the debts of nations or sponsor the education of millions. To get here
is not easy but one tip is:
You must offer a service which every human who means well for his/herself must need.
You must be able to earn money 24/7 every month of the year.
This is the stage of the "Financial Guru"
Thanks for reading.
