Who wants to be a millionaire? Actually, the question should be, “Who is going to be a millionaire?” The answer is ‘you,’ if you adhere to some basic principles and stick to a simple plan. Sound too good to be true? It’s not. In fact, it’s a tangible benchmark within reach and deserved for most working fitness professionals.
As an industry we have become good at what we do; really good. We have studied the best forms of physical evaluation to develop optimal programming for our clients. We now integrate the latest technology to provide the safest and most progressive exercise routines. We continue to learn effective exercise for those with special needs or considerations. We have (perhaps) never been better educated and able to serve. Yet, despite the proliferation of educational resources available to fitness professionals, financial education is sorely missing. Not coincidentally, fitness professionals generally have weak money muscles. Many don’t earn what they deserve, and even fewer view this a potentially lucrative career option with the opportunity to provide both a comfortable living as well as a secure future.
Creating wealth or success in the area of finance is a matter of mindset. You can absolutely become a millionaire if you practice these 10 simple rules:
Rule #1 - Establish savings: This is a safety net to be used only for short-term emergencies. This is not an investment! Depending on your personal situation, you’ll need anywhere from 3-18 months of living expenses.
Rule #2 - Live below your means: If you spend more than you earn, you create debt. When you earn more than you spend, you create opportunity to save and invest. Be sure your expenses are less than your earnings.
Rule #3 - Become an investor: Take a portion of your earnings and place it in an asset class that has history of appreciation. You work for your money. Let your money work for you also!
Rule #4 - Have a plan: Know what you want. Now determine how you will get there and stay accountable to the plan. The biggest mistake people make is to act without a plan and therefore they deviate off course with ease never to arrive at their desired destination.
Rule #5 - Be patient: The surest way to millionaire status is to stick to your plan and allow the power of compound interest to add/increase in value over time.
Rule #6 - Know and understand your risk tolerance: Can you emotionally handle setbacks such as a down market? Can you financially afford a short-term loss? Don’t invest what you don’t have or what you can’t afford to lose.
Rule #7 - Avoid fear: Know that setbacks are setups for comebacks. “Buy low, sell high” is the opposite of what most people do, and most people are just over broke.
Rule #8 - Practice diversification: Don’t put all of your eggs in one basket. Stocks, bonds, business or real estate, all sectors will go through swings. Diversification ensures that all is not lost at the same time. Remember that the more your risk, the more you may gain but the more you could potentially lose. *Speak to a Certified Financial Planner (CFP) or Qualified Advisor to help develop an appropriate portfolio based on your goals, needs and tolerance.
Rule #9 - Seek professional help: Don’t just turn your money over to someone to manage; stay engaged and informed. Seek the advice of a CFP or Qualified Agent to get unemotional objective advice, and then become educated yourself.
Rule #10 - Do your own homework: Understand where your money is and don’t invest in what you don’t understand or know.
Without question, the first three rules are the key. You need savings to handle short-term emergencies. You must live below your means as to not accumulate debt. And you must become an investor so that both you and your money are working to create the wealth you deserve.
Time is a critical factor in any success formula, so the sooner you begin the better you’ll do. Start with these 10 simple rules and begin your journey to wealth creation. You can do it, and you deserve it.