How to
Become Financially Independent
Presented
by Jim Rohn
Mr. Shoate (Rohn’s mentor) told him when he was 25, “Mr. Rohn in
my own opinion financial independence is a worthy goal.”
The reason he said this is because some people have an internal
moral struggle with making a lot of money.
Once you get money out of the way, you can’t believe the other
dimensions of your life you can work on.
If you could do better, should you? Some use the
moral question as an excuse.
Challenge yourself to see what you can become. It’s
not the amount that counts….its the extent of the reach that counts. You
should employ the full extent of your reach. If you make $50,000 per year
and you are capable of $500,000; you are a loser. You must extend your
mental personal capacity to its limit.
Mr. Shoate had a simple philosophy on this.
How
far should you
go?
As far as you can.
As far as you can.
How
much should you
learn?
As much as you can.
As much as you can.
How
many books should you read?
As many as you can.
As many as you can.
How
much should you
earn?
As much as you can.
As much as you can.
How
much should you
share?
As much as you can.
As much as you can.
What
should you
accomplish?
As much as you can.
As much as you can.
What could I do in comparison to what I am doing?
What could I do to extend my reach?
Am I fully employed?
The only way you can get money out of the way is to have plenty.
The time you’ve already set aside for labor is enough time to
become wealthy. If you are working 8 or 10 hours a day that’s about
it, you can’t put in more. But, if you better utilize that 8 or 10
and double or triple your income that would be o.k.
Working more and putting aside health, family, friends is short
changing your self.
Financial independence is dependent upon the plan you have.
KEY: It’s so much as what you earn, it’s what you do
with what you earn.
The average person in the United States in their
lifetime makes a half million dollars. The question after that
lifetime is where is it? Some keep it, others don’t.
A good book to start with on financial independence is George
Clason’s The Richest Man in Babylon.
The them of The Richest Man in Babylon is
“learn to live on 70% of your net income (after-tax income)”.
The Richest Man in Babylon suggests the
following for the other 30% of your net income.
Next the book suggests that you learn to be enterprising. Profits
are better than wages. Be a capitalist. Turn your income
into capital. Teach your kids how to have two bicycles. One
to ride and one to rent. Teach your kids how to sell. Once
they make the sale, teach them how to set aside money for capital and money for
10%
should go to charity or tithing.
10% should go to the
increase of capital.
10%
for paying off your debts, then once they are paid, use it for investing.
A few more tips on financial independence.
1.
Put together a financial statement. Assets –
Liabilities = Net Worth
i. To get
to where you want to go, you have to know where you are.
ii. You
don’t need to share this with anyone, it is for you. Your first one
may not be pretty.
iii. Use it
like a game. Get excited about reducing your liabilities and
increasing your assets.
iv. It’s
not the amount that counts but the attitude and the plan.
2.
Keep strict accounts.
i. You’ve
got to know where it all goes. The Rockefeller’s grandfather made
them keep track of every penny they got and where it went.
ii. If your
outgo exceeds your income your upkeep becomes your downfall.
3.
Participate in capitalism. Buy and sell something and
invest the profits.
4.
Get your family involved and excited about your plan.
Happiness is not contained in what you get but in what you
become.
Make financial independence a game.
