Every entrepreneur desires to achieve a certain level of income that would afford him or her to live the life of a rich and famous person, like Manny Pacquiao.
As an entrepreneur, how much income do you need to achieve so you can consider yourself wealthy? Does owning a big house in Ayala Alabang or having a 5-series BMW that you show off to your friends make you a wealthy person? Or does having a lot of savings in the bank—as a result of your frugal lifestyle—make you wealthy?
If you are the type of entrepreneur who is overly cautious in spending, you may be able to accumulate savings over time by cutting costs and expenses out of your income, but you may not be able to live a “quality life” because you probably will forgo many things that you would have spent on, and with, your family.
You are not free to spend your money because you fear you may not have enough when the rainy days come. On the other hand, if you are the type who spends spare money easily, you may be able to buy expensive things and properties that will make you look rich to your friends and relatives.
But you have to keep in mind that owning a property in a posh subdivision or a fancy sports car does not mean you are wealthy, unless you have the financial capacity to keep and maintain it at all times. Otherwise, you don’t have anything but liabilities.
So what is it about being wealthy? It is not just about having a lot of money in the bank, about buying expensive clothes or dining at a high-class restaurant. Being wealthy is about being financially independent. When you are independent, you have freedom in your life. You are free from worries and work pressures. You don’t want to feel obliged to work eight hours a day to earn a living. You don’t want to feel the stress of not having enough money to support your lifestyle.
Congratulations if you are experiencing this right now, but if this is what you dream to achieve, then you should start planning to be wealthy.
To become wealthy, plan it carefully with a Registered Financial Planner (RFP). Develop the habits of successful, wealthy people. Nurture the self-discipline to save and invest without sacrificing your quality of life. Find ways to increase your income streams and build your net worth. Then you just might get the financial independence you deserve.