If you are like most individuals accumulating wealth is important to you. Not because you want to be on the Forbes list or something of that nature. More so to have security for you, your family, and for generations to come. However, we all know that most people are spenders not savers. Earlier this year, I decided to join the savers. Last year, I did a plethora of work to get my finances on track but this year I really took it up a notch.
If you are person who grow up in home where money was not talked about and you were lost when you became adult here are some things I learned this year that has helped my personal and business life so much.
Balance Your Checkbook
Do you set down weekly to make sure your checkbook is balanced? I know balancing a checkbook is outdated but since sitting down weekly to do this, my finances have made a distract change. There is nothing wrong with using online banking or tools such as Mint.com to help you balance your money. However, for me I needed to take an extra step with my finances by writing them down. By writing my spending’s in my checkbook it made it real. Seeing Starbucks, Target, HEB numerous times in one week or day was a serious moment of clarity.
Daily and Weekly Management
How often do you check your online bank account? I check my online banking account every morning to make sure there isn’t any fraudulent activity. Identity theft is huge, especially around the holidays. On a weekly basis I try to spend 2 hours on my finances. Most millionaires spend 2+ hours a week on their finances. The rest of the population spends roughly 2 hours a month. That’s mind blowing. Be a good steward over your finances by putting the time in to manage them.
In college, I was a huge Suze Orman fan. Well, let me correct myself I was a fan of her show. I tried reading two of her books and they were not for me. Despite that, finding financial blogs and books can be a great way to get your start in building wealth. As of right now, I recommend Dave Ramsey books. Honestly, his teachings are simple. If you live by them you can get out of debt and build wealth. Its about being committed. Total Money Makeover is the book you should start with. Find financial bloggers who know what they are talking about. Find books that you can relate too.
Listen To Podcast
Best thing to happen to me. I block off 1 hour a day to listen to Dave Ramsey live show or podcast. If I know my day is going to be busy I listen to his podcast while I am jogging or working out in the morning. Killing two birds with one stone. You need to immerse yourself into building wealth through money management. Doing something here and there is great, but when you are doing it daily that’s when the habits change.
Set Realistic Goals
You won’t become a millionaire over night unless you win the lottery and we all know the odds of winning the lottery are very slim to none. What goals do you want to achieve? I thought back on how much money I’ve made over the course of my adult life thus far, that I can’t get back, it saddened me because I could have had thousands of dollars in my savings. So, my first goal was to save a thousand dollars for my business as well as personal finances. This is still one of the proudest moments of my adult life. I spent countless dollars on designer stuff but didn’t have a thousand dollars in savings. My priorities were backwards. When I hit this goal Liz, Nicole, and several others at my bank gave me a hug. They were proud of me. I was proud of me. Create small goals and attack them. Next year my goal is to knock out three student loan debts in 12 months. I created a plan of action and will be setting it in motion in just a few days.
Become Debt Free
This is a huge part of building wealth. If you have $60,000 of debt, building wealth isn’t going to happen immediately. You must first get out of debt. You are a slave to lenders long as you owe them money. Think about this…you are paying someone to use your money by using a credit card. Why not just spend cash. I have seen first hand how saying you will be paying cash can change the price on a car and cash can make the difference. Businesses love cash. Start the Dave Ramsey Baby Steps and knock out your debt before you do anything else.
What money management tip for building wealth touches you the most? How can you use these tips to help you build wealth?
Image by Daniel Foster