Spend less than you make: Be sure that you are not spending more than you bring in. Be sure that you don't spend from a place of lack or scarcity mentality because if you’re spending all that money and buying extra of things you do not need, how much are you saving? You have some extra money in your pocket shouldn’t be the reason to spend on things that are not necessary. Instead, you can go by these 2 rules; Live by 70% of your gross income and save the other 30% and if you want to stretch yourself more, spend only 30% of it.
Be wise with your debt: Not all debt is bad! There is good debt. Instead of using your own money in business, you should be using business funding and business credit to build your business, not your personal credit. Use other people’s money to build your business. Know your debt to income ration. If you are going to open up a credit card, make sure it is for a reason and not because you don’t have money for your personal expenses I.e., your bills and holiday gifts.
Protect yourself against setbacks: It's called defensive planning. Defensively plan by making sure you have three months of the monthly net in the bank. It is important to have another stream of income. It is not enough to just depend on your 9 to 5 income. The average millionaire has an average of 7 streams of income. Having more than one provides a safety net incase something doesn’t work out as planned. Be sure to always have a plan incase something goes wrong.
Have a short and long term plan: You have to think long term investments and short term investments. Use your short term plan to build up to the long term one. How you do that is to have your long term plan first. Have a 10 year plan and break those goals in half to let you know where to be in the 5 year mark. Then, break it down some more to know where you should be at the 3 year mark, 1 year mark and in 6 months. The decisions you make today is what is going to affect what you have later.
Give of yourself: Your have to contribute into the Universe. Your most precious asset is your time. Be sure that you are volunteering at places. Remember, givers gain! So if you want more in your life, you have to give. If you want more money, you have to give money. Where are you contributing to? What charities are you giving to? Are you giving money to the homeless? What are you doing to give to people who cannot give back to you?
If you want to learn more about how you can improve your financial habits and build up your wealth more, text WEALTH to 727-265-1615.
Food For Thought: Brought to you by Mimi.
“The truth hurts, but deception cuts deeper.”