First F – financial independence exercise: how to be financially independent

Are you financially independent? Here is a template to help you document your financial independence plan. Get a pen and paper and start writing.

Are you financially independent?

Here is a template to help you document your financial independence plan. Get a pen and paper and start writing.

Practical exercise 1: Clarity about what you want to achieve in life

(a) Write down your vision (where do you want to be in 5 years from now).  What exactly do you want to achieve in the future? Please take the time and write your vision below.

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Example 1:

“To be financially independent and knowledgeable with good health and social respect.”

(b) Write down your mission (how will you get there?) Your mission should answers questions like; “What makes me different,” “What do I do?”; “How do I do it?”, “Who do I do it for?”

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Example 2:

“To be known as a person of integrity and the best executive coach in Africa.”

(c) Write down your values or credo (what values will guide your actions and behaviours to ensure you get there easily and not at the expense of others?)

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Example 3:

Take responsibility for my actions, regardless of the consequences

A deep respect for people regardless of status or background

Perform every task to my ability with excellence and integrity

Care for the people around me and my community.

God-fearing in everything I do

 (d) Undertake a personal position audit to assess your strengths and weaknesses (which resources do you need/ have to achieve your vision and mission).

 

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Example 4:

Money: I’ve US $ 1,000 on my savings bank account.

Machinery: I don’t have any assets or investments.

Markets: I have two corporate clients whom I consult for on a retainer basis.

Make-up/ mindset: I have a first degree in accounting.

Materials: I have intellectual property and tools to use in my private practice.

Manpower: I don’t have any in terms of employees. However, I am healthy and energetic.

If you have the above 6Ms in your favor, that is your strength. Anything you lack is your weakness. Your strategy is to turn your weaknesses into strengths. Taking stock of your strengths/ weaknesses helps you identify the appropriate courses of action to take to achieve your vision.

For your opportunities and threats, you may consider the model P.E.S.T.L.E.D for political, economic, social, technological, legal and ecological and demographic factors. If any factor is in your favor, it is your opportunity, else it is a threat and you must find ways to turn it into an opportunity for your success.

For example, if your father is a successful politician, you could attend some of his public rallies, work as his MC to promote your brand. That is an opportunity. If you are tech-savvy, and we are in a technological world, that is your opportunity. All you need is to figure out how to optimize the opportunity to your advantage. You need a strategy to do so to achieve your vision and career goals.

Ensure you are clear about what you want to achieve.  It is important to have a personal value system. It is possible to become rich by stealing, but is that something you would be proud of? Remember, you cannot run away from your conscience. And it happens to be a critical measure of self-actualization and happiness.

This book is about worry-free life. Don’t accumulate wealth out of fraud and expect to live a worry-free life. Clarifying your credo or value system will help position you at the center of business or career success and leadership.

To be continued…

In the next article, we look at the five secrets of financial independence.

To read the complete book, click here >>

Copyright Mustapha B Mugisa, 2020. All rights reserved.

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