Something happened to a friend of mine recently. She just moved to England to pursue her dream of becoming a licensed aircraft maintenance engineer. I consider her one of the most financially savvy people I know with a knack for reading about money and making connections.
True to her nature, she met a young man, a friend of hers whom she invited to her place. She rents a room in a house owned by a white man and his wife which is quite small and comfortable. When my friend opened the door to her room his first question was; “where is your room?” and went on to basically make comments that will be considered rude by anyone’s standards. I remember my friend calling, almost in tears as to how a human being can be so rude.
You see, my friend has enough money to live in a very spacious environment but she does not consider it necessary. She always says, “I’m just one body, and this room is big enough to contain me and best of all, it’s cheap”. This girl had made a lot of financial savvy decisions for one so young among which is financing the purchase of a land in Nigeria at quite a young age and all this from her savings.
When she called me, it really dawned on me how very much we are affected by people’s opinions about us.
Aristotle said “Man is by nature a social animal; an individual who is unsocial naturally and not accidentally is either beneath our notice or more than human. Society is something that precedes the individual”.
In your quest to become financially independent, you have to learn how to detach from the natural human tendency to want to keep up with societal standards.
Most times we think a bigger paycheck will solve our problems but demand always finds a way to meet and surpass supply.
The moment you understand your problem is not your “ little” paycheck but your unwillingness to do the needful, in other words lack of appropriate discipline, that’s the moment you will start your journey out of the rat race.
There are three known types of income;
- Active – Earned income, Requires Face Time. You Work For Your Money.
- Portfolio – Capital Gain Income from Stocks, Bonds, 401K, etc. Involves Risk.
- Passive – Cashflow Income – Rent, Royalties, Your Money Works for You.
Until you have left the active to the portfolio and passive income, you are still very much in the rat race and cannot be considered rich by real standards of wealth.
Building your passive and portfolio income should be your aim in order to reach a financially independent life and you can’t reach this aim without learning to cut your coat according to your cloth regardless of what society thinks.
- Learn about money and how it works.
- Read financial books.
- Go for seminars, read and consume as much financial articles as you can.
- Surround yourself with like minded people.
- Get mentors that have achieved what you hope to achieve and,
- Most of all connect, connect and connect.
Books I recommend
1. Richest man in Babylon
2. Think and grow rich
3. Rich dad poor dad
4. The E- Myth
5. The Jewish Phenomenon.
These books should get you started on getting the right financial education.
Feel free to comment books that helped you through your journey.☺️
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