There are four sequential steps that literally take an entrepreneur from start to finish on their quest for financial independence. Here they are, simply stated:
- Optimize what you have.
- Eliminate all reductive debt.
- Establish significant cash reserves.
- Invest for long-term goals and plans.
Steps one to three are foundational and must be completed before embarking on step four. This focus on the first three steps will help you as an entrepreneur create more cash flow and operate debt free. But, this foundation is critical to building a strong and sturdy “house” of investments.
Unfortunately, most financial plans don’t address many of these steps that must be completed before investing. Instead, Wall Street advisors focus on selling products like life insurance, annuities or stocks and bonds to their prospects. The result is, people end up with financial products but lack a coordinated plan to fund their retirement. This creates a situation of vulnerability and, for many, a latent sense of anxiety in knowing that they’re simply not prepared to retire.
But, the four sequential steps are focused on you and your success. As you complete them one after the other, you gain confidence and momentum.