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Understanding Basic Finance & Financial Freedom

Understanding basic finance and accounting is fundamental in achieving financial freedom, if that is what you choose. Why not?

If you choose to join the adventurous journey of becoming financially free, you need get ready to stay focused, disciplined and be willing to work.

There is no “Get Rich Quick Scheme” don’t buy the hype. If you do, make sure to do your research and fully understand what you are getting yourself into. Learn from these companies and understand how they are trying to sell you something. There is a skill there.

The work you need to put in is incredible, it will really test you and help you grow as a person and improve your business acumen. Let’s face it, unless you grew up around business mentors, you are unlikely to understand business unless you study it and practice it.

It all boils down to your vision and what you want. What is your goal? And how much work are you prepared to give for it? As you start, you are not expected to fully understand everything at a professional level, learning by observing other people, trying it and making mistakes is one natural way to start. The more mistakes you can learn before starting will help you save a lot of time.

Business success is methodical and systematical. First you need an idea, a vision, a goal and a very good plan to turn it into a business. Start with a fresh white board and write it down. Write down everything, and I mean everything. What is needed? How are parts connected? This will quickly highlight sections of where you are missing knowledge and need to do more research in certain areas. That is fine. Don’t get worried or scared. Make a start. Most people will find this part very daunting and will probably give up at this point. Just start. You will gain momentum as you start. It takes guts and a strong will to succeed and to keep going. Understand the reason WHY you are doing this and it WILL pull you forwards to continue. This reason needs to be strong, so strong that it burns a deep desire inside you. If not, then you are likely to not pursue with all your potential energy and give up somewhere down the line. Write down a plan and stick to it. Initially you will need to keep tweaking it, but you will gain experience over time and it will get better as you start to understand all the areas that want your time, money and energy. Again, you don’t need to become a professional at it all, but you do need to understand how all the parts are connected together and later you can buy that service from someone who is a professional in that area, but for now, you just need to start.

You may have this super bright idea that will help a lot of people, however, is it economically viable? Be realistic and don’t try to reinvent the wheel. A good start is understanding basic accounting. At its core, know what is going in and what is going out? What are all the areas that require money? How much time is needed? Realistically who is buying and how much are they willing to pay for it? How many people want it? Are there any rules stopping you?

A good place to start is reading an official financial statement filed from an existing company that is similar to what you want. Observe that business and try to understand the movements and how everything flows.

Success leaves clues. Follow the yellow brick road.

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