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How To Make Your Financial Freedom Dreams Come Through Half The Time

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How To Create Your Own Personal Prosperity This Year (1)

By
Grace Agada

Most working professionals say that financial freedom is their goal. But if they must achieve it, they must do so within their 30-year work career time. Research shows that 80% of them are failing to achieve it. That is after grinding at a job for 30 years. The big question is why?

Why haven’t many achieved financial freedom despite years of hard labour? Why have the many investments effort spanning over 30 years not produced the right results? How can you achieve financial freedom in half the time?

The answer is simple.

You need to do two things.

First you need, to choose the right path. And second you need to close the gap between learning and doing.

1.Choosing the Right Path
People take either of these two paths when they want to achieve financial freedom. The first is the path that leads to financial freedom. And the second is the path that leads to middle-class poverty. While no one sets out to be poor in the end, many fail to make their good intentions come through. This means that you can have good intentions and still end up in poverty. Good intentions are not good enough. You must be able to make your good intentions come through. Almost everyone knows someone who had good intentions that never came through. And for 80% of working professionals this is their fate.

So how do you make your intentions come through?

The fastest way is to enter the right path and then to take the actions that lead to freedom

So, what is the right path and how do you find it?

READ ALSO: Middle-Class Poverty And How To Escape The Rich Dad, Poor Dad, Same Dad Syndrome

You find the right path by taking three simple steps.

Step 1-Choose a Financial Freedom Role Model
The first step to achieving financial freedom is to find a person that has achieved it. If you want to do something you have not done before the fastest way is to find someone who has done it to guide you. The right person for you is anyone who was once in your shoes but has now stepped out onto bigger shoes.

The mistake most people make at this stage is to choose popular success models like Elon Musk, Mark Zuckerberg, or Dangote. If you do this, you will fail because none of these models were once in your shoes. And a model must be once in your shoes to guide you through that path. These models are all business success role models. And you can model them when you enter the business world. Also, a business success model is 500 times more likely to achieve financial freedom than you will ever dream of as an employee.  So, you must choose a model that has a similar or complementary background.

When you find your model, study them, observe what they are doing and earn their mentorship where you can or interview them. Do not make the mistake of modeling their lifestyle. If you do, you will go broke faster than you will make money. The focus here is to model their actions. Observe their mindset, perspectives, and attitude. If you are lucky to work in an organization where the CEO was once an employee like you, then you have the perfect person to model right in front of you every day.

Once you understand the actions, mindset, attitude, relationships, and rituals that are producing the desired results, you need to write them down.

The more actions you take that are in alignment with the actions of your success role model the faster you will achieve financial freedom.
Once you write down what you have observed to be the key success factors, divide them into two categories. First are actions that are easy and those that you like. And second is actions that are hard and those that you don’t like.

Now here is the golden key

The hard actions that you do not like are the keys to your own financial freedom.
Every easy action and admirable life are first produced by difficult and unadmirable actions. If you make the mistake of modelling the easy things you will fail.  You must model the difficult actions that produce the easy life.

Step 2-Choose a Financial Poverty Role Model
The second step is to find a person that represents a poverty role model to you. That is someone that was once in your shoes. But today you pray never to be like. This is the easiest role model to find. And the best place to look are ex-employees like you who are now in retirement.

READ ALSO: How To Lift Your Income Above Your Financial Goals

When you find your poverty role model, find out these two things about them. First find out what they did when they were at the peak of their career life that you liked. And second, find out the things that their life is about now that you do not like.
Now here is the key.

The things that you like or love about your poverty role model when they were at the peak of their career is the key to your own financial poverty. If you model them, you will end up in the same place.

The same action always produces the same results. If you do not like the end results you must never model the actions.
I know this is a difficult thing to do for most people as some of the actions seem noble. For example, most of your poverty models may have helped a lot of family members, poor people, and sacrificed a lot for other people save themselves. But there is nothing noble about being good to others but yourself. True nobility is about being good to yourself and then others. And this is the only kind of nobility that can lead you to financial freedom.

Step 3: Find Out Who You Are Becoming
The third step is to list the financial actions, mindset, and attitude that you are exhibiting today and compare them first with your poverty role model. And then with your financial freedom model. Who do you look more like and who are you becoming every day? Remember actions lead to results. And the quality and timing of your actions is what will determine your end results. You cannot model poverty and become a success and you cannot model a success and become a failure.

2.Closing the Gap between Learning and Doing
The second thing you must do to achieve financial freedom is to close the gap between what you are learning and what you are doing. The truth is there are more learners in the world than there are doers. That is why poverty is on the rampage. Only doers achieve financial freedom. For example, at the end of this article you will know how to achieve financial freedom. But by this time next year only 15% of you would have taken any action. Knowing a thing will never lead to success and here is why.

Knowing a thing is about learning-a simpler, more passive, and easy to do activity. Achieving a thing is about doing a harder, more active, and more difficult thing to do. The only way to close the gap between learning and doing is to develop and upgrade your discipline.

Discipline is the golden bridge to financial freedom. And if you fail to achieve financial freedom there are only two reasons why. The first is ignorance which will no longer be the case when you finish reading this article. And the second is the lack of discipline which is the most likely to stop you.

For example, most people know what they should do to improve their financial life, but they don’t do it.

They know they should save more than they spend. They don’t do it

They know that they should earn more than one income. They don’t do it.

They know that they should plan early for retirement. They don’t do it.

If you can bridge the gap between what you know and what you do you will be far more successful than you are today.

The difference between the success of any two people five years from now is discipline. Discipline carries more weight than knowledge.

And the one with the discipline to act will always beat the hard worker or the hard learner anytime.

READ ALSO: How To Maintain Your Current Quality Of Life In Retirement

It’s now up to you whether you choose to be a learner or doer. Whatever you decide, know that it is your life, future security and happiness that is on the line here.

Act now before you are forced to act by pain.

Bio
Grace O. Agada is the most sought-after financial planning expert in Nigeria. She is a renowned author, financial expert and keynote speaker. Agada is popularly known as the upper-class mentor and her goal is to help working professionals escape middle-class poverty and transition to the upper class. Agada is the author of three books and possibly the most widely read financial articles. Her articles are spread across seven national newspapers and four of the most popular Nigerian blogs. Agada is also the founder of the University of Wealth, the Rich Retirement Bootcamp, and the Wealthy Business MBA Programme. Agada has been featured on BBC Africa, Business Day TV. Inspiration FM. and Naijatv. And she consults for numerous top organizations, company directors, CEOs, senior executives, and high-income professionals.

 

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How To Create Your Own Personal Prosperity This Year (1)

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How To Create Your Own Personal Prosperity This Year (1)

  By

 Grace Agada

There are two kinds of economy that must prosper to make this year better than last year for you. The first is the global economy. This is the economy that affects the prices of goods and services. This economy has the least impact on your personal prosperity. The second is your personal economy. This is the economy that affects your purchasing power, financial stability, and personal peace of mind. This economy is the economy with the greatest impact on your personal life. Thankfully this economy is within your control, and you can create a prosperous personal economy regardless of the state of the global economy. This is true because in every economy and at the end of every year there are two categories of people. The first are the winners that end the year with more prosperity and the second are the losers that end the year losing their prosperity. Thus, there is no question that every year brings with it prosperity opportunities. The big question is will you locate your own prosperity this year? What do you need to do to prosper regardless of the state of the global economy? And what steps must you take different from last year especially when you have a track record of carrying over unachieved goals every year?

The answer is simple.

To create a prosperous personal economy this year you must master how to do three things well.

READ ALSO: How To End Up In A Better Place Than Your Parents At the end of Your Career (2)

The first is to understand the advantages or upsides and the limitations or downsides that you bring into the year. Everyone comes into a year with upsides and downsides. Thus, one of the things that will determine your success this year is what you bring into the year. The second is the opportunities that exist in the year and whether you can position and leverage those opportunities well. And the third is understanding how not to Increase your disadvantages or downsides within a given year. The more disadvantages you end up with at the end of the year the lower your chance of achieving success next year. So, let’s look at each of these components and how they can affect your prosperity this year.

  1. Understanding What You Bring into The Year

Everyone comes into the new year with something and there is never a time in your life where you will have nothing to begin with. This means that your success this year will depend on the quality of what you bring into the year. And there are two thing that you bring into a year. The first are advantages or upsides and the second are disadvantages or downsides. The advantages you bring into a year are what you need to move from where you are now to where you want to be. Without advantages, there will be no way to move from where you are now to where you want to be. The disadvantages or limitations that you bring into a year are all the things that can hold you back. To move ahead in any given year you must overcome, subdue, or eliminate your disadvantages. Thus, the worse way to think about success in a year is to have the notion that the year itself will perform some magic to make you wealthy. And even worse is to think that the help you need will first come from outside sources. Help comes from outside sources when you have first begun to help yourself. This means that true financial breakthrough begins with you, and it begins with leveraging  the advantages you already have. There must be something you have, own, control, can do, or can get, to begin your prosperity this year. And until you master the art of starting with what you already have, you will not make significant progress this year.

So, what kind of advantages do you need to have to make this year a prosperous year for you?

There are nine of them.

The first is knowledge. Knowledge is the seed for growth and the beginning of financial transformation. This means that the number one problem in most people’s financial life is ignorance. When you know and have more relevant and refined knowledge you will do better. Thus, the quality and type of knowledge that you bring into this year or acquire during the year will affect how far you go. Unfortunately, most people are busy acquiring the wrong knowledge. They are acquiring knowledge that has little or no impact on their financial prosperity. There are about five common sources of knowledge for most people in a given year. The first is the news, the second is social media, the third is through formal education, the fourth is by observing other people and trying to be like them and the fifth is from religion. Unfortunately, none of these sources currently give you the kind of knowledge that enhances prosperity. The news only increases your fear and anxiety as it thrives on bad rather than good news. Social media increases your fantasy and unrealistic expectations as it thrives on the fake lives of other people. Traditional education and certifications load your mind with theoretical knowledge that has little or no power to elevate your income. Following the lives of other people who are also trying to figure out their lives is the fastest way to walk and live in error. You will only achieve your greatest success living your own life. Religion focuses on doing and carrying out busy religious activities rather than abiding, knowing, maturing, and becoming. Thus, at the end of the year you have not only acquired irrelevant and unimportant knowledge, but you have also become more ignorant in the knowledge and affairs that can truly produce wealth. If you must prosper this year you must focus on the kind of knowledge that creates wealth.

READ ALSO: How To Know You Wouldn’t End Up Dependent Like Your Parents (1)

The second advantage you need is skills and there are two types of skills. The first are high income skills and the second are low-income skills. High income skills are skills that produce high income with minimal workload, responsibility, and time investment. Low-income skills in contrast are skills that require enormous workload, responsibility, and a long time to produce significant income. You acquire high income skills by developing knowledge and skills that can create, own, and control your own income producing assets. When you own income producing assets you move from hustling for wealth to positioning for wealth. You acquire low-income skills when you develop knowledge and skills that make you a good laborer or worker in the income-producing field of another person. When you are a worker or laborer hustling becomes your default way of life. Thus, the more low-income skills you have and develop this year the lower your chances of ending with a more prosperous life.

The third advantage you need are assets. Wealth creation is all about owning and controlling income- producing assets. This means that you must own or control something of value to create maximum wealth this year. Thus, if you come into the year owning nothing and do not create, acquire, or own your own income producing assets this year wealth and prosperity will be far away from you.

The fourth advantage you need is rich relationships. Relationship is a valuable wealth currency just like money. In fact, rich relationships can do for you what money cannot do for you. Thus, the more rich and wealth-creating relationships you bring into the year or develop during this year the higher your chances of success. Rich relationships expand your opportunities, possibilities, leverage, and options. Wealth-draining relationships expand your liabilities, stress, and financial load. This means that the only way to succeed this year is to significantly improve the quality of your relationships.

The fifth advantage you need is sources of income. The worse number to have as far as your income source is concerned is one. One source of income is too weak to give you the kind of prosperity that you desire this year. Besides, all income sources have advantages and disadvantages. And the only way to truly optimize your income is to combine it with sources that can make up for or cancel its disadvantages. Your salary for example is a regular and consistent income. But its disadvantage is that it is a laborious source of income that only reaches its peak after sacrificing years of your youthful life. To optimize salary, you must combine it with another source of income that complement this disadvantage.  This means that multiplying your sources of income is not a random process, there is a science and formula to it. If all you do is add and combine any source of income that you find you may end up with more stress and workload than income. Worse of all is that some sources of income are channels of losing money rather than making money.  Thus, the best way to create your own solid income portfolio is to choose income sources that complement each other and cancel each other’s disadvantage.

READ ALSO: The Big Financial Education That Will Speed Up Your Financial Freedom

The sixth advantage that you need is a disciplined savings culture and solid cash reserve. Having a disciplined savings culture is the fastest and easiest way to elevate your financial life. If you lack the discipline to save, then you also lack the discipline to acquire or improve any of the other advantages listed here. Thus, having a disciplined savings culture is your first step to freedom. Your second step is to make your savings fail proof. This means that you must shield your savings from losses due to bad investment decisions and unplanned expenses. The third step is to give your savings a clear and specific mission. And the most profitable mission for your savings is to help you gain financial freedom. Thus, your savings must be structured to give you financial freedom. And there are only two ways to do this. First you must save big portions of your income- 25%, 50% or 70% is the recommended. Second you must build cash reserves that can produce stable passive income that is worth the value of your salary. Building stable passive income that is worth the value of your income is the only way to transfer your source of livelihood from active income to passive income. And this is the fastest way to achieve financial freedom. If all you focus on this year is to save big, make your savings fail-proof, and build stable passive income that is worth the whole or certain percentages of your current income, you would have prospered more than 80% of the population.

The seventh advantage you need is good health. Health is wealth and a very potent destroyer of accumulated wealth. Thus, the quality of health you bring into the year can either support your wealth creation activities or deduct from them. When you have good health your productivity, energy, attention, and focus increase and so does your wealth. When you have poor health, symptoms of bad health choices or even fears of impending health dangers your productivity, energy, attention, and focus are distorted. Thus, the only way to prosper this year is to increase the activities and habits that promote health and reduce the activities and habits that promote disease.

The eight advantage you need is productive time. Time by itself carries little or no wealth advantage. The only time that has impact on wealth is productive time. Thus, if all you do this year is worry, fight, do more of the same old things, try to be like others, or do all the junk activities that waste time, you will end up broke and miserable at the end of the year. But if you choose to invest time in productive activities that create wealth and increase your odds of success then you will enjoy prosperity. Thus, the place where you spend time and how you use your time this year will determine your level of success.

The ninth advantage is the supernatural. There are certain things that are beyond your effort, understanding or capacity as a human being. To get through these things you need the help of the supernatural. While you may be able to achieve some level of success on your own, there are certain heights in wealth that may be difficult to achieve without the help of the supernatural. To get the kind of supernatural help that leads to wealth you must develop a close relationship with your source. Intimacy with your source is the only way to gain insight into certain truth that will help you on your wealth journey. This same intimacy will keep you grounded during difficult times, help you stay glued to your values, and standards, and help you find your true wealth path and succeed in it. Regardless of what or who you believe, you must know that there are certain heights in wealth you cannot attain without the help of the supernatural.

Now that you know the nine advantages that will affect your prosperity this year, we will review in the part two of this article the disadvantages and limitations that will affect your prosperity this year and what to do about them. We will also look at what a new year truly offers you and how to live in a year without increasing your disadvantages. Stay Connected.

Perhaps you need help developing your advantages and maximizing your odds of success this year, we can help you.  Send an email to info@createsolidwealth.com

 

About The Author

Grace Agada is the most sought-after financial freedom expert in Nigeria. She is a renowned author, financial freedom advisor and keynote speaker. Agada is popularly known as the Queen of Financial Freedom, the Breadwinner’s Advocate and the Middle-Class to Upper-Class Mentor. Her goal is to help working professionals and breadwinners move their success and livelihood from a paycheck to their own solid passive income. Agada is the author of three books and possibly the most widely read financial articles. Her articles are spread across seven national newspapers and four of the most popular Nigerian blogs. Agada  is also the Founder of the University of Wealth, the Rich Retirement Life Quarterly Publication, the Wealth Creator Quarterly Report, and the Wealthy Business Blueprint Programme. Agada has been featured on BBC Africa, Business Day TV,  Inspiration FM and inside Naijatv. And she consults for numerous top organizations, company directors, CEOs, C-Suite executives, and high-income professionals. To connect with Agada, send an email to info@createsolidwealth.com

 

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How To End Up In A Better Place Than Your Parents At the end of Your Career (2)

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How To Create Your Own Personal Prosperity This Year (1)

By

Grace Agada

 The dream of every working professional is to end up in a better place than their parents. This better place for most people is the place of independence, self-sufficiency, and fulfillment. But while this may be the dream of many people, converting this dream into reality is a challenge for the majority. Research shows that 8 out of 10 people will not actualize this dream and a handful of them will end up in a worse place than their parents. Why do many people have financial freedom dreams but cannot achieve them? I explained the reason in part 1 of this article- “How to Know You Wouldn’t End Up Dependent like Your Parents”. In this article I will be showing you how to achieve your financial freedom goal and what you must do to end up in a better place than your parents. I will also be showing how to change direction if you are already on the wrong path.

So, what must you do to end up in a better place than your parents?

The answer is simple.

To end up in a better place than your parents you must do two things. First, you must find the example of a person that ended up in a better place than your parents. Someone you want to pattern your life after. Second, you must identify the actions that this person took that made them achieve their financial freedom goals. And then you must compare these actions with the actions that you are currently taking. To accomplish these two goals, you need to do what I call the Perfect Good Example Assessment and the Action Resemblance Assessment. Let’s do these assessments together.

READ ALSO: How To Know You Wouldn’t End Up Dependent Like Your Parents (1)

The Perfect Good Example Assessment

There are two kinds of examples you must see and learn from to achieve financial freedom. The first is the perfect bad example – that is the example of how Not to achieve financial freedom. And the second is the perfect good example – that is the example of how to achieve financial freedom without fail. The only way to see these examples is to find someone close to you that failed to achieve financial freedom after a prosperous career. And another person who achieved financial freedom before retirement. Seeing these two examples gives you a clear picture of what to do and what not to do to achieve financial freedom. The challenge is while we have countless perfect bad examples, it is hard to find a perfect good example. 80% of people have never seen one and the majority are living their lives based on lessons learned from their perfect bad example – The closest of which is their parents. Most people have watched their parents descend from a one-time successful career into a deplorable retirement life. A condition known as “The Rich Dad, Poor Dad, The Same Dad Syndrome” – The same dad becoming rich and then becoming poor in one lifetime. This means that chances are high that most of the investment decisions you have taken up until now have been driven by your perfect bad example, or by people who are trying to figure it out just like you.  Only 20% of people have seen a person close to them that has successfully transitioned from a great career to an even greater retirement life. But until you find a perfect good example and model them you will not achieve financial freedom.

So how do you know a good example that is perfect for you?

A perfect good example for you is someone that has these three attributes.

First, they must have walked the same or a similar path as you – this means that they must once be an employee. They must also have faced similar challenges and have made similar mistakes. And yet was able to achieve financial freedom.

Second, this person must no longer be in the career world. One of the early signs of those that achieve financial freedom is that they exit the career world into the business world. People that achieve financial freedom do not remain employees. They enter the business world to create more wealth there.

Third, this person must be a current success and not some good old day success story. This person must have a present life that is bigger and better than their active career life. And they must also have a bright and promising future ahead of them.

READ ALSO: The Big Financial Education That Will Speed Up Your Financial Freedom

So, what do you do when you find your Perfect Good Example?

There are two things you must do. The first is to identify the things they did that made them achieve financial freedom. And the second is to model those things.

There are four things that every Perfect Good Example did that helped them achieve financial freedom. The first is that they moved from a mindset that is focused on building a temporary rich lifestyle to a mindset that is focused on living off their own passive income. They moved from high maintenance to low maintenance lifestyle, made better financial decisions and modeled other Perfect Good Examples. The second thing they did is, they started taking financial freedom actions and reducing financial bondage actions. They spent their time, money, and energy in the right places, focused on the right things and were accountable to other Perfect Good Examples. The third thing they did is they moved from having more wealth draining relationships to having more wealth creating relationships. They surrounded themselves with other self-sufficient people. And the fourth thing they did is develop high income skills. This enabled them to multiply their income, save bigger portions, and achieve their goals with speed. These four things combined are the main factors that made Perfect Good Examples achieve financial freedom despite the odds. And the four things that you also must do. Once you have identified these four things 30% of the work is already done. The remaining 70% and where the bulk of the work is, is to develop the discipline and capacity to model what you have identified. This brings us to the second assessment that you must do.

The Action Resemblance Assessment

While almost anyone can identify what the wealthy did that made them successful, only a few people have the discipline to do what they did. And without the discipline to do what the people with the results that you seek did you will not achieve financial freedom. Success is 30% knowing what to do and 70% discipline to do what you know. It is more about doing the few hard and necessary things than doing the trivial fun, easy and comfortable things.  This means that the only way to achieve financial freedom is to be willing to do what needs to be done, when it must be done whether you feel like it or not. This is the only way not to become an impediment in your own success.

Once you have made up your mind to pay the price the next thing you must do is compare actions. Put the actions you have identified in your perfect Good Example Assessment on your right-hand side. Put the actions you identified in your perfect bad example on your left-hand side. And then put your own current actions in the middle. Who do you resemble in actions? If you haven’t been mentored, coached, or helped by a perfect good example chances are that you will look more like your perfect bad example because you can only model what you see, feel, and understand.

READ ALSO: How To Stop Hustling And Start Positioning For Wealth

To achieve financial freedom, you must model your perfect good example and dump the lessons learned from your perfect bad example. Success and failure do not mix, while success involves taking high standard actions failure involves taking low standard actions. Thus, it is either you are moving towards financial freedom, or you are heading towards financial bondage. Until you do what your perfect good example did to achieve financial freedom, you will not achieve it. The person you resemble is who you become at the end of your career.

Perhaps you need help achieving financial freedom or connecting with a Perfect Good Example, we can help you. Send an email to info@createsolidwealth.com.

About The Author

Grace Agada is the most sought-after financial freedom expert in Nigeria. She is a renowned author, financial freedom advisor and keynote speaker. Agada  is popularly known as the Queen of Financial Freedom, the Breadwinner’s Advocate and the Middle-Class to Upper-Class Mentor. Her goal is to help working professionals and breadwinners move their success and livelihood from a paycheck to their own solid passive income. Agada is the author of three books and possibly the most widely read financial articles. Her articles are spread across seven national newspapers and four of the most popular Nigerian blogs. Agada is also the Founder of the University of Wealth, the Rich Retirement Life Quarterly Publication, the Wealth Creator Quarterly Report, and the Wealthy Business Blueprint Program. Agada  has been featured on BBC Africa, Business Day TV, Inspiration FM and inside Naijatv. And she consults for numerous top organizations, company directors, CEOs, C-Suite executives, and high-income professionals. To connect with Agada, send an email to info@createsolidwealth.com

 

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How To Know You Wouldn’t End Up Dependent Like Your Parents (1)

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How To Create Your Own Personal Prosperity This Year (1)

 By 

Grace Agada

A few decades ago, your parents were exactly where you are today. They had jobs, regular income, a good life and were filled with hopes and dreams. Financial freedom and helping other people were also part of their dreams and they made certain investment efforts hoping to achieve it. But like many other things, their life did not go as planned. Today they have a life that is worse in retirement than their active career life. The big question is would your life go as planned? How many people do you know today whose life has gone exactly as they planned it? What gives you the confidence that your life will go as planned? And is there a way to know upfront where you would end up at the end of your career?

A few years from now your career will end and your life will end up in a certain place. The big question is where would it be? Will your life end up in financial freedom or financial bondage? Depending on what you do today your life will end up in either of these three places. The first is the same place as your parents-This is where you are dependent on your loved ones but have independent children that can cater for you. The second is a worse place than your parents. This is where you are dependent on other people, but also have children that are dependent on you. And the third is a better place than your parents-this is where you are independent and self-sufficient in retirement and your children are also independent too. Out of these three-end destinations, you would end up in a certain place. But how do you know where you would end up? And what can you do to end up in a better place than your parents? I will answer both questions in parts 1 and 2 of this article.

READ ALSO: The Big Financial Education That Will Speed Up Your Financial Freedom

One of the big misconceptions that make people fail in life is to think that time will change their financial situation. Time never determines your financial success. If it does, more people will be richer in retirement than during their active career life. But research shows that 8 out of 10 people are 80% poorer in retirement than during their active career life. This means that an increase in time does not necessarily mean an increase in financial freedom. What determines your financial freedom is your actions and the quality of the decisions that you make. Your actions more than your desire, good intentions, wishes, hope, or dreams is the biggest determinant of how your life turns out in retirement. Thus, it is possible to predict with accuracy where you would end up in retirement just by looking at what you do today. And it is also possible to change your retirement destination if you do not like what you see today.

Yet rather than take charge of retirement and create a better future most people are held back by fear. The most common of which is the fear of the unknown, a fear that simply exists because people refuse to confront the unknown before retirement. This fear, coupled with the fact that most people only saw the perfect bad example of how not to achieve financial freedom through their parents, make poverty action the default action for most people during their active career life. Only 10% of people have seen a perfect good example of how to achieve financial freedom and the best way to transition from a successful career to an even more successful retirement life.

The challenge with this is that you act according to what you see and know and will only replicate the familiar despite your good intentions. You are also not likely to model or replicate what you do not know or see. Thus, chances are high that you are already replicating some of the poverty actions you saw your parents took while growing up without even realizing it. Yet if you do not unlearn what you saw, observed, and adopted from your parents, your brain will automatically replicate the same actions when real life situations hit. And in due course you will reproduce the same results guaranteed.

READ ALSO: How To Stop Hustling And Start Positioning For Wealth

The only way to prevent this from happening is to do the three important assessments that I call the “End-destination Financial Freedom Assessment”.

The first assessment is the “Odds of Success” assessment. This is where you compare the advantages and disadvantages you have compared to that of your parents. The only way to have a better retirement future or end up in a better place than your parents is to have more advantages and less disadvantages than they did.

The second assessment is the “Perfect Good Example Assessment”. Right now, you have only been exposed to a perfect bad example of how not to achieve financial freedom. Until you also learn from a perfect good example, how to achieve financial freedom, you will not achieve it.

The third assessment is the “Action Resemblance assessment.” When you look at the actions, mindsets, and behavior of your perfect bad example and that of your perfect good example and compare them to your own current actions. Who do you resemble the most? Who you resemble is who you become?

These three assessments combined are what you need to determine your odds of success and whether you would end up in the same place as your parents. In Part 1 of this article, I will cover the first assessment and then I will cover the remaining two assessments in Part 2 of this article.

So, let’s see your odds compared to that of your parents

Job/Income

A job was the main source of income for your parents, and it is the same for you today. However, your parents had a better job/income prospect than you do today. Your parents were lucky to be in an era where jobs were more than the number of qualified graduates. They were enticed with lucrative job offers like a car, a house, and a juicy employee package from day one. This meant that they were almost overpaid from the beginning and didn’t have to bother about acquiring more degrees to edge competition like you do today. If you had a degree back then, you were in demand.  And it helped that they also lived in rural areas, so farming helped subsidize household costs. Yet despite these advantages a lot of them ended up broke in retirement.

Your options are slimmer today. You live in a time where degrees are a commodity. Regardless of the school you attended and the degree you have you practically need to beg to get or keep a job. You are also more likely to be underpaid from day one with no juicy perks like your parents. Worst of all is that the fierce job competition forces you to acquire more degrees, spending more money on tuition, and achieving financial independence at a later age. Your cost of living is also higher as you live in more urban areas and lack a subsidizing system for your household cost. Thus, compared to your parents your odds of achieving financial freedom are slimmer. Unless you find a way to increase your odds your chances are worse than those of your parents.

READ ALSO: How To Save More Than You Spend And Double The Speed Of Financial Freedom

Savings

Savings is what you would look like in retirement when your paycheck is gone. Yet it seems like your parents saved more money than you do now. And here is how I know.

Your parents had more children and dependents than you do today, yet they were able to train them all debt free. Not many people used debt back then, but today debt is mainstream. Your parents were also able to achieve major financial goals early and debt free too. They bought their cars debt free, built their houses debt free and trained their children debt free. Today we do everything with debt because over 75% of people only save 5-10% of their income. They send their children to school on loan, buy a car on loan, rent a house on loan, buy electronics on loan, and build a house on loan. We have become a loan-infested society reducing any chance of achieving financial freedom.

Your parents also had a better retirement savings plan. Most of them retired with income that is the same as the last salary they earned before retirement. Today retirement plans at best represent only 20% of your salary. Without big portion savings and the ability to augment pension income your financial freedom dream is a mirage.

Investing

If savings is what you look like in retirement, investing is what sustains you in retirement. Thus, there were two main investments our parents made  and understood during their career life and these are also the investments that you do today. There are real estate and children education. But your parents have certain advantages that you do not have. First, they could send their children to affordable public schools, enjoy free education, and were not peer- pressured into sending their children abroad. Today, some parents spend a major part of their 15-20 years income on education even though these educations are useless without a job. Parents today seem to be enriching the schools than they are enriching their own financial future. They are also putting themselves in more debt through home ownership. A personal home is a non-income producing asset and the best way to own it is debt-free. While a home is important, it will not pay your bills in retirement.

READ ALSO: How To Give Cheerfully And Still Achieve Financial Freedom

Children Independence and Value System

Your children are your greatest investment, yet our parents seem to have done a better job investing in children than we do today. At the core of their career was time dedicated to bringing up resilient, strong, and respectful children. A disciplined, moral-based, and religious-based training approach was used, an approach not entirely perfect but produced resilient, disciplined, and respectful children with strong moral and family values. Today in the bid to soften this training approach, we have mass- produced fragile children that are dependent, entitled and can break under pressure. Yet, the world we live in is neither soft nor easy. The worst thing we have done is dilute their value system by sending them abroad.

Today’s children are likely to be strangers in their home country and strangers in their base country. They are unlikely to return home after school and be present for their parents in their old age. Parental care will be done majorly via skype and zoom. And real estate assets will be abandoned, sold, or left to strangers. Even so their chances of success in their base country where they are treated as second class citizens is limited.

Truth be told, you have way more disadvantages than your parents. While this generation has succeeded in increasing their cost and disadvantage, they have done little to optimize their advantage. And until you optimize your advantage you will end up in the same place or even a worse place than your parents.

To learn more about ‘How you can end up in a better place than Your parents’ watch out for part two of this article.

About The Author

Grace Agada is the most sought-after financial freedom expert in Nigeria. She is a renowned author, financial freedom advisor and keynote speaker. Agada  is popularly known as the Queen of Financial Freedom, the Breadwinner’s Advocate and the Middle-Class to Upper-Class Mentor. Her goal is to help working professionals and breadwinners move their success and livelihood from a paycheck to their own solid passive income. Agada is the author of three books and possibly the most widely read financial articles. Her articles are spread across seven national newspapers and four of the most popular Nigerian blogs. Agada is also the Founder of the University of Wealth, the Rich Retirement Life Quarterly Publication, the Wealth Creator Quarterly Report, and the Wealthy Business Blueprint Program. Agada has been featured on BBC Africa, Business Day TV, Inspiration FM and inside Naijatv. And she consults for numerous top organizations, company directors, CEOs, C-Suite executives, and high-income professionals. To connect with Agada, send an email to info@createsolidwealth.com

 

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