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The Stepping Stones Of Wealth Part 5

INVEST FOR BOTH CASH FLOW AND GROWTH

Welcome to part 5 of my Stepping Stones of Wealth System.my road to financial freedom money man

In part 1 we started with knowing our numbers and where we are currently at in our financial lives.

In part 2 we covered our Money Management System.

In part 3 we then built our foundations.

Part 4 then saw us educating ourselves on financial matters and also working on our mindset for success.

Now in part 5, we are ready to invest and the best way to do so is to find the right vehicles to invest in for BOTH Cash flow and Growth.!!!!

IT ALL STARTS WITH OUR FINANCIAL FREEDOM  (FFA) ACCOUNT

The reason I have left the actual investing to part 5 of my 5 step process, is because we need to have all our other steps in place first. It is like any building, you must have all your foundations in place first or that building is going to collapse!!! I know of this first hand, as when I first started investing in properties, I did not have my Cash flow under control or my money management system in place and I had to sell some properties and start again! Only this time using my Stepping Stones Of Wealth System with far greater success!!!

The key to investing comes back to a small yet critical element of the Stepping Stones and Money Management System… The FFA account! This is what you use for your investing and to create the Golden Goose that will lay the Golden Eggs and create true Financial Freedom!!!

CASH FLOW IS KING

The first thing to remember with investing is that cash flow is king and you MUST always have your cash flow under control!

So as you start putting 10% (or more) of your hard earned money into your FFA account, first build up your buffer of cash. The actual amount is up to you, but I would look to save up 2-6 months of cash reserves as a buffer.

Next I would look at investing in shares in good quality business’s that pay good dividends and keep reinvesting those dividends back and let compounding interest work it’s magic. Also research other investment options that don’t require a huge outlay that will put money back into your pocket!

GROWTH

Next we must start looking at building our asset base, and the best way to do that is to invest in good quality investment properties.

The only problem with real estate is that it does require substantial deposits and borrowings, but the risks can be minimized with having buffers in place and making sure that the outlay you have to top up these properties each month is minimal, and preferably they are putting money into your pocket!

MY SECRET WEAPON

As you can see, investing is pretty basic once your foundations are in place. It will require some education and research, but you can do it!!!

But I have a big problem with this, and that is even if you follow this system, yes you will be better off and eventually be financially free…. BUT WHEN???

That is why you need a secret weapon to get you on the path to financial freedom and out of the rat race as soon as possible, and as I have spoken of before, what has really propelled me towards my destination of Financial Freedom with a bullet is starting my own online business!!!!Financial Freedom Ahead

Here at My Road To Financial Freedom, I will continue to provide valuable information on creating financial freedom with all the tools and strategies I have learnt, such as starting an online business, but if you want the very best training and support out there available, I would highly recommend the community of Wealthy Affiliate, you can read my full review on Wealthy Affiliate here.

So why not join me on My Road To Financial Freedom, it may be closer than you think!

If you have any questions or comments feel free to leave them below, I will be happy to help.

Again, I am John Newman and always remember, Dream It… Believe It.. Then Achieve IT!!!

 

 

John newman

John newman

My name is John W. Newman. Property investor, Internet entrepreneur, husband and father of four beautiful daughters. Join me on my road to financial freedom! Dream It...Believe It...Then Achieve It!

6 Comments

  1. Hey, John

    Awesome post on the stepping stones to wealth and I really like the fact you have linked to all your other previous posts too.

    There are plenty of different routes to wealth but to be honest I much prefer the online route as an affiliate marketer because it’s so rewarding when you learn all the different aspects of internet marketing and apply them to your online business. There’s so much potential when it come to earning money online.

    Wealthy Affiliate is the way forward for people looking to become wealthy online 😉

    Neil

    • Thanks for your comment and feedback Neil!

      I agree, an online business is certainly the way forward, and Wealthy Affiliate is the way to go!!

  2. When I first started working some 5 years ago, someone told me to put aside a portion of my paycheck into saving plans. She drew me this timeline until I reach the age of 55 and asked me to imagine my financial situation then. I was just fresh from college and there were so many things I wanted to do with my money and saving wasn’t my plan at all. My foresight got the better of me and I although I don’t own a fortune (yet), I am glad I’d follow the advice because now, my money is growing steadily somewhere. Thanks for for sharing.

    • Thanks Cathy, I know I have done the same thing and not managed my money properly until a few years ago and it is something I am constantly trying to pass on to my Children and now other people as well!! Thanks so much for your feedback!!

  3. Hi John, Thanks for sharing this series of useful information. I am learning something every time I visit your site. I wish you every success!

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