2 A GUIDE TO FINANCIAL FREEDOM Author: Andrej Mlinšek Published in: 2020 Lecturing and translation: Manuela Mlakar Formatting and breaks: Gorazd Podplatnik, Grafika Gracer d.o.o., Celje Published by: Adriatikus Založba d.o.o. Kidričeva ulica 24b, 3000 Celje Telephone: +386 41 352 697 E-mail: publishing@adriatikus.eu Printed by: Grafika Gracer d.o.o., Celje Copies: 300 Naslov: A GUIDE TO FINANCIAL FREEDOM Avtor: Andrej Mlinšek Založnik: Adriatikus Založba d.o.o., Kidričeva 24b, 3000 Celje, Slovenija Leto izdaje: 2019 Naklada: 300 izvodov Avtorske pravice: Andrej Mlinšek Naslov v izvirniku: Pot do finančne svobode Prevod: Manuela Mlakar ISBN:
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BUILD IT, KEEP IT, PROTECT IT
a guide to FINANcial freedom 8 SIMPLE STEPS AND THE BABILONIAN FINANCIAL WALL
ANDREJ MLINÅ EK
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HOW TO BUILD, PROTECT AND KEEP YOUR ASSETS
Andrej MLINÅ EK
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DEDICATED TO ALL, WHO ARE SEEKING FOR FINANCIAL FREEDOM. Andrej MLINÅ EK
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INDEX 1
FINANCIAL RESPONSIBILITY
17
2
PLAN AND EDUCATE YOURSELF
51
3
THINK AS A MILLIONAIRE
81
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DEVELOP A NET ASSETS MENTALITY
117
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PSYCHOLOGY OF MONEY
131
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BUILD VARIOUS 163 BUSINESSES AND INCOMES
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PROTECTION OF ASSETS AND THE BABYLONIAN FINANCIAL WALL
197
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EXPAND YOUR LIFE 10X
229
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INTRODUCTION I always knew how to earn money. I earned my first income at 13 while working in a project office in Velenje during school holidays. When I was 14 holiday work bought me my first motocycle. I began to sell cars at 19 to cover the expenses of studying in Maribor. I did this for the next 5 years. I liked selling cars as it enabled me to study and play basketball during the week
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and to attend weekends.
car
fairs
during
My brother Peter and I sold a car every week. Peter also sold motocycles, so a different motocycle or car stood in front of the house each week. At first, my mum Alenka looked reluctantly at our small business, but then she was happy with every sale. My mother also recorded cassettes for children with the Children's Choir, which I sold through Slovenian elementary schools.
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At 21 I spent some time in London and worked at restaurants and hotels. My longest employment was at the Browns Hotel, especially known for visits by the Queen Mother who came there for her afternoon tea. I worked in several restaurants, all with the intention of being able to pay for a stay in London and go to an English language school. I also imported keyboards from London to Slovenia where I sold them.
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My friend Iztok and I imported leather jackets from Italy and sold them in Slovenia. Later, when I was 26, I started in direct sales and soon became a factory distributor for Kirby of Cleveland, USA. In 5 years I have built an organization of 150 people in Slovenia with an annual turnover of â‚Ź 2 million. But at the age of 33, at the height of my Kirby career, I realized that all my sales skills and working with people were not enough to know how to protect and keep what I have built.
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I realized in the most painful way, that I was completely ignorant and unaware of how to defend myself against all external factors and dangers that prey on an entrepreneur. Most of the book is about becoming aware and knowing that after we build our life (business and personal), we also have to know how to HOLD AND PROTECT it. I will leave tips on how to invest money to other financial advisers and books written on the subject.
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I did enough things right to succeed and I did enough things wrong to become a teacher. I want you to learn from my experiences, both negative and positive, while reading this book. For the last 15 years, I have been building my BABYLONIAN FINANCIAL WALL, which protects me from "financial surprises". I hope everyone finds some useful advice for their lives and maybe starts building his Babylonian financial wall. Andrej MlinĹĄek
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CHAPTER ONE FINANCIAL RESPONSIBILITY
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1. FINANCIAL RESPONSIBILITY Ever since my youth I have always been financially responsible. So how is it possible that I still got into financial trouble and took a long time to drag myself out of them? The main reason were my FINANCIAL HABITS which I did not have. It took me many years to acquire new habits that make me financially successful today.
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FIRST AND MOST IMPORTANT FINANCIAL RULE: PAY YOURSELF FIRST! What does this mean? Whatever money comes into your life, put something aside before you start paying bills and other financial obligations. It sounds simple enough, but it is a FINANCIAL habit that most people do not have.
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It took me years and years to master this perhaps most important habit of my life. Many times I made regular payments to myself first, and then I borrowed from myself for "urgent" matters. When I began, I couldn't even pay 1% of my income. There were simply always too many expenses. The breaktrough came when I read the thought that if you can't put 1% of your revenue aside, borrow 1% and put it aside.
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Most people constantly borrow money (banks, credit cards‌), not in order to pay themselves, but to pay others. As I slowly began to understand the concept of "PAY YOURSELF FIRST", I began to put aside (pay myself) first 10%, then 20% and often even 50% of my income. That is how I dragged myself out of the financial abyss and began to build my life on solid foundations. Today, my goal is to put 50% of my revenue aside, to pay myself first.
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12 WAYS OF FINANCIAL RESPONSIBILITY: 1) DON`T OVERREACH It means that you spend less money than you earn. Always have extra money at the end of the month. Most people live on a monthly basis and do not even have the slightest reserve if unforeseen things happen. They endebt themselves further each month because they run out of money for basic needs.
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Most people "have too much month at the end of the money." Initially living a life beneath one's financial possibilities requires a strong will and discipline. But once an individual establishes monetary habits that support his or her financial success, he or she can put an increasing portion of their income aside.