Lessons from Think and Grow Rich

6:00:00 AM

Financial literacy is not taught in school. I graduated college without anyone teaching me about budget, getting rid of debt, savings and investing. That’s why whenever I have an opportunity to educate myself about personal finance, I’m sure to be there. Seminars, lectures, books, videos, even pamphlets, I’ll grab it. In fact, my first financial lesson came from a Citibank flyer. Since then, I keep educating myself whenever I have a chance.



One of the best books on financial literacy for me, is Napoleon Hill’s Think and Grow Rich. This is a very old book, published in 1937 but I can say it is the king of all the books on personal finance.  It had sold more than 100 million copies worldwide and is listed in John Maxwell’s a Lifetime Must Read Book List. I thought I would share with you Napoleon Hill’s method for turning your financial desires to financial equivalent. This will help you set your financial goals and make it a reality. Let’s begin.

FIX YOUR MIND TO THE EXACT AMOUNT YOU WANT

Napoleon Hill says, it’s not enough to say, I want plenty of money. You have to be exact on this. Without a definite amount, you can’t set a definite plan. Goals should be measurable. You’ll never know if you are achieving it or not if you don’t have a target amount. How much is rich for you? For some, 1 million dollars is enough, to some its 20 million. Do the Math and be clear to yourself how much is your target financial goal.

DETERMINE EXACTLY WHAT YOU WANT TO DO IN RETURN

There is no such thing as something for nothing. You must give something in return. People love thinking about having money, but not on what he intends to do to earn it. Know what is your goose that laid the golden eggs. Do you have a product to sell? Is it your skills or profession? Is it your talent? You have to be exact about it. When you find it, nurture it, improve it and take care of it. If it’s a product, keep on innovating. If it’s your skills or profession, keep on adding value to yourself by continuing education and practice. If it’s your talent, keep on improving.

ESTABLISH A DEFINITE DATE

It is important that your goal is time bound. When do you plan to retire? Five, ten, fifteen years from now? You have to think about this carefully. I remember, there was a point in my life, I said I want to retire five years from now. Too ambitious but why not, I told myself. But the reason behind this timeline is the article I’ve read about a lady who did it. When I came to my senses, I realized that by then, my son is just seven years old, he’s just starting in elementary school and who knows, since I’m praying for more children, I may have a toddler or two by then. Lesson learned, don’t just copy other’s goals. Take time to think through it.

Personally, one of the best ways to plan the definite date is to create a time line. In a piece of paper, number it from 1 to 10, each number represents a year.  Next to it, write down your age, adding 1 year as the year goes. So if you are 30 years old by the year 1, then you are 40 years old by the year 10.  If you have a partner and kids, write down their age too. Now, write down life milestones. An example is my story above, by year 5 my son will be 7 years old and might be entering elementary school. This will incur additional cost for our family, so I have to plan about it. Same goes when he goes to college. With this, you can totally see your timeline and decide your dates for retirement.  

CREATE A DEFINITE PLAN

Now that you have an exact amount in mind, you know what to give to achieve it and you have a timeline in place, it’s time to create a plan. This will take a lot of planning, but since you have decided on the important things, you can definitely create this one. What’s important is to begin at once, whether you are ready or not, to put this plan into action.

WRITE OUR CLEAR AND CONCISE STATEMENT OF YOUR GOAL

Write out a clear, concise statement of the amount you intend to gain, name the time limit to achieve it, state what you intend to give in return and describe clearly the plan through which you intend to accumulate it.

READ IT TWICE DAILY

Read it first thing in the morning and last thing at night. Napoleon Hill suggested to read it aloud and as you read – see and feel and believe yourself already in possession of the money.

These steps are nothing without Faith. I love when he said that Faith is the starting point of all accumulation of riches. All thoughts which have been emotionalized and mixed with Faith, begin immediately to translate themselves into their physical equivalent.

That’s about it. If you find this interesting, go ahead and read the book as there are a lot of things taught in the book that is not mentioned in this blog post. Let me know if you like this book report type of blog, so I can share with you more in the future. See you in my next post.

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