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HOW TO ESCAPE THE FINANCIAL BLACKHOLE :The Path To Financial Freedom

HOW TO ESCAPE THE FINANCIAL BLACKHOLE :The Path To Financial Freedom

My grand father said it much simpler. He used to tell me to plant fruit trees and wait. It takes half an hour to plant and little care over time. But you get to enjoy the fruits for years and years and you can plant as many trees as you like. That scalability. I never saw him holding a job in my life. Every year when the mango season came he used to cash out hundreds of thousands in few months. Same trees giving him money year after year without any investment. He never went to school but paid for my school and a dozen more. A simple formula plant a tree that create wealth for you and scale as many tree as you can instead of creating wealth by using your time and body.

In this episode l won’t bother you much with my my rags-to-riches story. I wasn’t born with a silver spoon in my mouth. I have worked my entire life to create success for myself, my family and my community. This is not a ‘How to make a million’ book. All the same, l am not going to give you a 555 page personal finance ebook, l will just be precise and straight to the point. Truth of the matter is l came a long way through trials and tribulations. I have been in the black hole of debt for close to 5 years. I was stuck in the rate race and l could not figure a way out on my own. My finances were in total disarray despite my background in accounting. I realized that throughout the years in school l missed a lot about the reality of life. In school l was programmed to have good passes, graduate, get a job , earn a salary and pay bills and debts that kept spiraling.

Buy income generating assets, invest or start a business which provide a steady regular cashflow.

Change your mindset about finances. Mindset represents 80% of financial success and strategy represents only 20%.

Control thy expenditure and Prioritise spending. Now I can tell you an unusual truth about man or woman. What each of us call our ‘’ necessary expenses���’ will always grow to equal our incomes unless we protest to the contrary. Confuse not your necessary expenses with your desires.

Track incomes and expenses, make a realistic budget

Pay of debts

Stop living paycheck-to-paycheck

Earn more, spend less, save, invest, build wealth

Make saving your priority (pay yourself first). Many people love instant gratification and spend all they earn then end up with nothing to show after 40 years. But what if you were just to save 10%  of your income every month and invest it in stocks and mutual funds or unit trusts that earn you say a cool 3 to 7% return a year and compound every year l can imagine how much you would accumulate after a decade. I hope you have a good calculator here. Nonetheless, compounding interest as discovered by Albert Einstein which he said is the greatest invention of all time and the most powerful force on earth. Compound returns are often referred to as the eighth wonder of the world.  If you can afford to spend $50 on cell phone airtime top up per month. Why not save for your future. Most of the time we feel that there is not enough to save  or invest hence we procrastinate saying I will start when l earn more. But trust me if you cannot save ten cents out of a dollar, you will not save $100 000 out of a million dollars. If you can not start with a small income, forget it when you have a bigger income. As Dave Ramsey puts it , success in personal finance is 80%  discipline and 20 % knowledge. Stop procrastination and start investing right now.

Many people think investing is risky. Laziness is risky – Robert Kiyosaki

PURCHASE DIVIDEND STOCKS

While the stock market may not be for everyone, it is one place where many people have made significant wealth. The stock market pays through profit on trading (buying and selling) of financial assets, from capital gains and dividends. Participating in the stock market is a great way of preserving capital and building wealth. It is well envisaged that time and compound returns are the most important factors in growing wealth. Though it may seem counterintuitive, getting rich requires investors to adopt an unsexy buy-and-hold strategy, ride out market fluctuations and ignore speculation. Now if you can blend frugal living and investing, you’ll build wealth.

START A BUSINESS

MUTUAL FUNDS/UNIT TRUSTS  

STOCKS , BONDS

You can invest in shares of companies buying on the stock exchange. In the stock market you can earn money through profit when you buy shares at a low price and sell at a higher price. You can also make more money through capital gains when the share increase in value.

For Bonds you can get interest on a regular basis

Investing in local and international markets.

Cryptocurencies  likebitcoin and etherium

BANK INVESTMENTS , SAVINGS ACCOUNTS, CODs, money market accounts

EBOOKS

REAL ESTATE

BECOME AN AGENT AND EARN COMMISSION

Another way to make money is by becoming an agent . In Zimbabwe you can become an agent for mobile money transfer services Ecocash. You can also become an agent for an insurance company and you earn commission. This may not make you a millionare but if you do it right you can have a decent income for yourself.

AFFILIATE MARKETING

BUILD AN APP

CREATE AN ONLINE COURSE

Sell digital products

Google Adsense, affiliate links likesendowl, membership

PURCHASE HIGH DIVIDEND STOCKS

NETWORK MARKETING

CAFÉ PRESS.COM – Design and sell Tshirts

SELL YOUR PHOTOS ONLINE on  Shutterstock. If you are good at photography or creating original videos you can actually make money onShutterstock

Receive money from diaspora through

Transferwise

EARN INTEREST ON A SAVING ACCOUNT

This is a passive way of earning income. If you have a sizable amount to set aside then a cool 3 to 10% per annum interest is not bad.

VEHICLE ADVERTISING

PUBLIC SPEAKING IF YOU HAVE THE GIFT OF GAB

INVEST IN YOUSELF

STARTING YOUR OWN BUSINESS

CREATE AND MONETIZE AN APP/ WEBSITE / BLOG

While you cannot be Bill Gates or Mark Zuckerberg , you can actually earn a decent income from the internet. You do not neccessarily have to be a tech guru to create an app. One great way to earn income is to have your own website, sell some stuff on your website, monetize through google adsense, sell advertising space or if you are a web designer or developer you cancreate websites for sale You can also earn commissions through affiliate programs where you get paid for selling other people’s stuff through your website, blog or app. You can alsocreate your own app and monetise. You can do it on your own or you can hire some onfiverr

See You on the other side

Artwell Kaurimbo

Artwell Kaurimbo is an enterpreneur, dedicated personal finance coach and blogger with a passion for assisting others.

Disclaimer:  This blog is intented to give basic financial education and you are advised to seek independent proffessional advice before attempting anything shared on this blog.