Building Wealth Skills

 Control Your Money

Wealth building requires that you learn to control every penny that flows through your life.

That seems like a lot of work.

That's right.  Lack of discipline is what keeps the vast majority of people broke.

Most people have one source of income -- their job. This income flows into their life via a pay check and out any number of destinations. 

Most everyone spends every penny their earn -- and then some. 

They never retain any money in savings. They spend it all. 

Obviously, the only way to have an overflowing prosperity in your life is below your means.  Spend less than you make.  Build multiple streams of income.

How do we get control of our money.  Establish  spending priorities.

Where should the first dollars go? 

To your partners. 

Who are your partners? God, first. Yourself, next. And Uncle Sam, third. 

Then, you can live maintain your lifestyle with what's left over.

Priority 1 is  Tithing or Charity (which represents your contribution toward God, church, God, charity, others, giving, etc.).   If you're an atheist or an agnostic, or in any way squeamish about the subject of God, then you need to stop and reevaluate your thinking.  True prosperity does not come from man.  It comes from God.  YOU may deny the existence of God, but your denial does not cancel the universal truth of the law of giving.

Priority 2 is called Self. Take the next 10% of your money.

Priority 3 is taxes.  Federal, state, county, local.

Priority 4 is Shelter in the form of house payments or rent payments.

Priority 5 includes Household items such as food, clothing, television, normal living expenses attributed to living in your place of residence

Priority  6 is Automobile or transportation expense.  Everything you pay for gas, transportation, repairs to your vehicles, or car payments,

Priority  7 is Insurance.  This includes all forms of insurance; health, life, disability, liability, house, homeowners, etc.

Priority 8 is Business Expenses.  It covers any expense used to produce income other than W2 income.

Priority 9 Entertainment is anything you do to amuse yourself.  Usually, whenever you spend money out of the home on movies, fast food, travel or toys, etc.

Priority 10 is Miscellaneous, which is anything not covered by the other priorities.

Every dollar you spend is spent according to one or more of these priorities. 

How many times a day do you spend money? 5 times? Ten times? 

Rarely more. 

Think of it. You only spend money a few times a day. 

And yet, those few decisions make all of the difference between poverty and wealth. 

Average people go to the store to buy something. They are in a rush, running late. 

They quickly snatch up the desired item without comparing prices. 

While they're waiting in the check out stand they see a few impulse items they pick up. They pay for the items but don't record the event because other people are waiting in line and besides, they're running late. 

They rush off "a day late and a dollar short."

Smart money takes a few extra steps which take less than a minute. 

Smart money has already decided  to buy only the planned item and nothing else. 

Life is full of things to buy. 

Don't allow your impulses to derail the decision to control your money. Spend according to priority, not according to impulse.

Spend a few extra seconds to compare prices and to pick the best value.

Ask a sales clerk if the item might be on sale or if there is a possibility of obtaining a discount in price. 

Then, smart money does the most important thing -- records the event by writing down the purchase, determining which priority of spending it was made in.   

So, from now on, every time you spend money take an extra minute to do these simple things....

1. Plan your needs and procrastinate your wants

2. Shop for value

3. Ask for and expect a discount

4. Examine your receipt. Categorize your receipt. Actually write a number from one to ten on the receipt....so that you mentally decide which area of your life you are spending money on.

6. Balance your accounts....whether it's cash, check or credit card.  File your receipt when you get home.

The key to financial planning is cash flow management. You've got to get control of the direction your money is traveling.   

The objective of the money game is to accumulate enough assets so that eventually the income from your personal assets will support you instead of your personal skills.

Do you need additional sources of income? Start working on those multiple streams today.

Are you good setting priorities? Transact your business according those priorities.

Are you good at getting stuff? Are you accumulating assets?

Are you good at repaying debts? Stay out of debt.

The better you are at managing and controlling these four activities, the wealthier you'll become.

Practice the wealth building skill of controlling your money. 

Remember, building wealth requires control over your money.

The Seven Secrets of Building Wealth

Building Wealth Skill #1. Value Your Money

Building Wealth Skill #2. Control Your Money

Building Wealth Skill #3. Save Your Money

Building Wealth Skill #4. Invest Your Money

Building Wealth Skill #5. Making Money

Building Wealth Skill #6. Shield Your Money

Building Wealth Skill #7. Share Your Money