The mind works in unfathomable ways, words are the command of life itself, the command of money too. Not knowing these twelve words that locked all your up isn’t a good thing.
Some years ago I had a light bulb moment, my eyes lit up as I listened intently to the financial intelligence expert who spoke on investments, financial intelligence, and passive income. I was in my 20’s and I had never understood what those words meant and how they impacted my chance of escaping poverty and achieving everything I dreamt of.
If I didn’t understand those basic money principles, how could I make them work for me? The truth is, most of the principles of financial freedom have been codified into words.
Understanding and making use of these words (codified principles) in our daily decision making is what helps us achieve financial freedom. Let’s talk about some major ones.
Financial Intelligence is one of the phrases that changed my perspective on how money works. Just as you need emotional intelligence to make your relationships thrive, you need financial intelligence to make the right decisions concerning money. There is a right way to think about money – learn it!
One of the major concepts financial intelligence affords you is a basic understanding of TAX. Tax is one of the most mysterious money-words. The rich try to avoid it and the poor have no clue how it works. But just because you don’t know a substance is poisonous doesn’t mean it won’t hurt you. Whether you are self-employed or a businessman, taxation influences your financial freedom in a great way.
Passive Income is a phrase that confuses a lot of financial illiterates. Passive income is often seen as ponzi scheme to some folks and this a great injustice to financial intelligence. Just as you work actively to generate income, passive income is generated when you’ve invested money (into ventures).
Owning one percent (1%) of the shares at Google makes me a billionaire; not because I code or write algorithms but because what I invested will yield ROI (Return on Investment).
Yes, there is no form of business venture or investment that does not have a level of RISK in it. Many people run away from risk without knowing that risk is a part of life.
Mark Zuckerberg said that the greatest risk is not taking any risks. The wisdom here is to take calculated risks.
Partnerships: the backbone of most wealthy individuals is the strategic partnerships that they have other people. Research shows that businesses that were started by two or more people have a higher chance of being successful than that of a sole proprietor.
The goal of having a partner is to complement your skill and personality deficiency. You don’t partner just for partnering sake; you partner because there is something unique that your partner can offer.
BRAND: what if you decide not to enter a partnership, then it is important to develop a very strong brand (read more here -5 Reason You Are Probably Still Poor).
Actually, it’s not only single founders that should develop a brand. Your brand is the projection of who you are and your value. Having Donald Trump’s (before he became President) name on any real estate implies a Gold Standard. You like it or not, that’s what his brand is. The more your brand is worth, the higher the chances of you achieving financial freedom.
VALUE: the more valuable your brand is, the more financial returns it brings to you. Someone told me recently that money responds to value. So instead of chasing money, why not focus on adding value. Mark Zuckerberg is quite wealthy today because of the amount of value he brings. That’s the same reason why some top athletes make considerably more money than their teammates –the extra value they bring to the team.
I was at a conference some years ago, where one of the speakers said that ‘because you are worth something does not mean that people will value you the same way’.
Just because you see yourself as worth something does not mean other people will see you as such.
A process of bridging the gap is NEGOTIATION.
Negotiation has to do with seeing things from the perspective of your business partner and leveraging on that to get whatever you want. The only way you can get what you really deserve is by negotiating for it. Ask Donald Trump why he wrote the book “The Art of the Deal”.
The major key to successful negotiations is COMMUNICATION. Okay.
I can hear someone say “Is it not just about talking or speaking?”
Communication is probably one of the most underrated skills; no wonder the Toastmasters International makes it their focus.
Excellent communication skills are essential to pitch your ideas to investors, to cast your vision to your team. It is practically impossible to influence people without being skillful at communicating.
After communication, MARKETING is probably the next most important word for an individual or a business.
The truth is, we are all selling something. How well you can sell yourself will influence the rate at which you attain financial freedom. It’s not surprising that Fortune 500 companies spend millions of dollars annually as their marketing budget.
Marketing is about sharing stories; stories that will ultimately convince people to buy your product or service. What sharing stories also does is to help expand your NETWORK.
Entrepreneur Dan Lok said that he will rather spend time with people he has a common future with than people he has a common past with.
The more valuable your network is, the more your chances of escaping poverty and achieving financial freedom.
We probably have been talking about a lot of ideas and “soft stuff” but what makes them all work is EXECUTION.
A renowned NASA scientist said that “one test is worth ten thousand expert opinions”. Execution eats ideation and planning up for dinner. Execution is where the juice is.
There are thousands of other words – codified principles – that their understanding and correct application will help you attain financial freedom.
Imbibe these words and see as they revolutionize your money life.