Financial Planning and budgeting are often thought of as the same thing. There is a difference and for you to be successful it’s impotent you know them. One of the reasons I became an entrepreneur or business owner was because of Robert Kiyosaki.

I picked up the audio book series in a local branch of Waterstones (a large UK book store chain). In the series he talked about the fact people in the ‘wage system’ are actually in ‘rat race’. He invented a board game called Rat Race which is about how to get out of that rat race. Getting out of the rat race is about ways to earn extra money , in other words it’s about wealth creation.

As a person in a ‘job’ you will only ever earn as much as someone else decides what you are worth. In addition they decide ‘if’ you have a job. There are several ways to get out of the ‘wage system’ however that means moving into the ‘business system’.

Robert Kiyosaki’s latest best seller The Conspiracy of The Rich has one basic message. The education system was designed in the 19th century to provide ‘workers’ as opposed to entrepreneurs. In fact the excellent Napleon Hill in his book, Think and Grow Rich came up with a very interesting conclusion. He interviewed the 100 top millionaires, people like Andrew Carnegie the 1st Billionaire. Hiu aim was to find out why they were so successful.

His conclusion was that desire, creative thinking, persistence and the ability to adapt are all far more important than holding formal qualifications. In fact it was these successful really wealthy people who ended up employing the people trained to enter the ‘wage system;.

More recently the wealth education opportunity I am a consultant for created the video below to demonstrate there is a real conspiracy against your money:

I decided that self employment work from home was the best way into the ‘business system’. This is financial planning as opposed to budgeting. Fiancial planning is about the future and how you intend to create and manage wealth. Once you become a wealth creator then you become financially indepedent. Financial independence is about the ability to do things you want to do as opposed to being told whether you can.

To achieve financial independence personal budgeting is fundamental. One of the best books on personal money management is The Richest Man in Babylon by George Clason. He outlines 7 cures to an empty purse, it is even more relevant today following the banking crisis and frankly unethical banking practices of the major financial institutions.

The only person who can improve your personal lifestyle is you. Fortunately there is a solution to the issue of how a) to improve you lifestyle by 100% and b) the ability to become a business owner. It’s called the invisible profit system and the 1% solution.

Robert Kiyosaki, Warren Buffet (the cleverest investor in the world) both agree that ‘direct sales is the easiest way to become a business owner. Warren Buffet invested in over 30 network marketing and direct sales businesses. Over 20% of North Americans are involved in the market – why? Because it is a way of getting high quality products that add value to people without having to set up a ‘brick and mortar’ business.

You purchase the product and benefit from it and are entitled to invite people to become business associates. They purchase the product from you and they can then sell the product. You get commissions from people you train to sell the product and they get commissions from people they recruit. This is called leverage, your ability to earn profits is extended by the more people you bring to the opportunity.

So the 1%solution is a structured approach that says if you make small improvements in three areas of your life; Health, Wealth and Wisdom you can improve your life by 100% in 100 days. The improvement required is just 1% per day. This approach is so effective because it’s based on the effect of compounding.

The following simple explains why it so effective. Lets imagine you have a disposable income of £10 a day. To improve your wealth you decide to increase the daily amount available. On day 1 you need to find a saving of 1% which means finding just 1p. After 100 days you would have £11.04 daily disposable income. However in terms of your monthly income you are £30 better off. Continue in that way for a year and you will be £90 a month better. That is just by simply examining money you have already decided is disposable.

For more information about how to use this simple approach sign up for my weekly Ezine in the box top right to receive a free eBook.