“It’s not about how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
With that in mind, here are some tips on how to make your finances significant.
1. Take care of your money
In a previous post, I talked about the taxes, expenses, and interest payments that eat away at your financial potential. When you think about making your finances significant, think about ways you can mitigate these costs as much as possible.
In the same post, I also talked about two different types of risks to be aware of when getting out of the rat race including investment risk and inflation risk. When you think about making your finances significant, think about ways you can transfer these risks to somebody else.
When you mitigate costs and transfer risks, your wealth potential can be realized. You also can be sheltered from suffering the same harsh setbacks that occur when the economy suffers.
2. Take the long way
As Seth Godin says, “the long way is the short cut.” When you mitigate costs and transfer risks, you may not be earning in a high-interest environment, however, you won’t be losing in a high-risk environment either. If it sounds boring to you, don’t fear. There are options we will discuss in future posts about what you can do so your money is working for you but, first things first.
3. Think a minimum of 3 generations down the road.
You should create a financial system that can provide for a minimum of 3 generations down the road. This system should not only provide financially for future generations, but should also teach them the importance of keeping money and having money work for you.
When you have a financial system that can encompass 3 generations worth of provisions, you know you’ve done something right and you will be financially better off because of it.
4. Understand that success is about you, significance about others.
Producing results in competition with others; getting what you think you want relative to what others have.
Achieving wealth, influence, and popularity through accomplishments that endure only while you are alive.
Producing desired results by competing against yourself; believing in something larger than life; giving in to a higher purpose; making a difference, not just a living; wanting what you get.
Achieving wealth, influence, popularity, and admiration, loyalty, and respect through accomplishments that endure even beyond the grave.
(As defined in the Art of Significance by Dan Clark.)
The tips you see here are based on principles of stewardship, or of taking care. I hope that as you step into financial significance, it will allow you to use these principles of taking care, of taking the long way, of thinking a minimum of 3 generations down the road, and of understanding significance in other ways.
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All the best in your financial journey,