Updated: August 15, 2011
Last Friday, I attended the Steps To Financial Peace seminar.
Overall, I had a great day full of learning, inspiration and motivation.
And today, I’m sharing with you the most important lessons I learned from the seminar.
But first, let me ask – what does financial peace mean?
Is it simply having lots of money?
I believe it is not, because it can get stolen, or a financial emergency can instantly deplete it.
Does financial peace mean having many sources of income that earns you lots of money?
Well, you’re certainly more financially stable this way, but just like money, your sources of income has a risk of disappearing – you can lose your job, your business could lose customers or your investments could lose value.
So what does having financial peace really mean?
More than having money coming from multiple sources of income and having the discipline to spend less than what you’re earning – it’s also having protection for your wealth and assets against crisis.
To quote two of our readers:
Louise Anne Chan: “It’s having a soft pillow to land on when life brings you to your knees.”
Erwin Carlos: “It is a stage where one is confident that he will be resilient during times of adversities.”
Having learned that, the question now is how do you achieve financial peace?
The seminar taught me that there are six steps, which are:
Increase Cash Flow
It all starts here, in creating multiple sources of income. Want some ideas? Check out these income opportunities.
Create an Emergency Fund
Spend less than what you’re earning so you can save and build your emergency fund. This is your essential first line of financial protection.
Get Out of Debt
Pay your debts, slowly but surely using the Snowball Method. But more importantly, continue saving money while paying your debts.
Build Long-Term Savings
It’s never too early to plan for your retirement. A small amount that you save and invest today will amount to incredible earnings in the future, trust me.
Ensure Proper Protection
Health insurance, life insurance, educational plan for your children, even insurance for your businesses – these are your second line of asset protection that secures your financial future.
Preserve Your Estate
It’s a fact that you can’t bring your wealth to heaven. So make sure that your will, trusts and estate will be properly distributed to those who will benefit most from it, and to those who can make it grow further. I encourage you to leave a legacy of wealth for your children.
Those are your six steps to attaining financial peace. So which step are you on today?
Before I end, I’d like to again thank Randell for the invitation to this event, as well as for the complimentary tickets he provided for a couple of my readers.
And do check out the July-August issue of Moneysense Magazine, you’ll find me included in the Top 12 Most Influential People in Personal Finance there. 😀
Learn more on how you can build your financial legacy, subscribe to Ready To Be Rich.