How to Manage Your Money
Money management is a misunderstood topic. In fact, we can probably all agree that the word “manage” is a misunderstood topics as is the word “money”. So when we put the two together, there is no possible way it becomes any easier to understand. “Manage” at its root means “to handle”. Money means “coinage or metal currency”. When we put these together we get to handle coinage or metal currency. The fact is, we don’t use coins or metal currency any longer. We use paper, plastic cards, and digital transactions. So money management would mean “to handle paper, plastic, or digital currency”. A fact is that control = income so the more we control or “handle” our money, the more income we will have. My job is to help you make money, keep it, and multiply it so it is important to me that you understand how to handle your money.
What does money management NOT mean?
Money management does not mean giving up control of money to a financial advisor. If you let them handle your money, they have the control, and therefore they make the income. This is literally true, based on the fees they charge you to handle your money. Money management as we are going to discuss it today is referring to your ability to handle your personal finances to increase control.
1. Income. Increase your income by looking at it weekly at least. The larger increases you desire, the more control you need to put on it. If you want massive increases, look at your income daily or even multiple times per day. Never go more than a week without looking at your income. Sound like a lot of work? Well so is being broke. Your pick. You should be looking at what has deposited to your bank account, what will deposit and is in transit, what has potential to pay you, and also based on your goals for income which opportunities you must go create to achieve your goals.
2a. Expenses. This is referring to past expenses. I’ve talked about this before, but look at the last 7 days of your expenses and rate them on a 1-5 scale. 1. It was dumb-return it. 2. It was bad timing- return it. 3. Maybe. -Determine what is needed more. The item? Or the need for income? 4. It was vital. Vital literally refers to living. Vital expenses are key in your survival. Keep it. 5. It earns income. If the expense is income producing keep it and also reinforce it. Do this every week. The result? Better spending habits, higher income, lower taxes (5’s are typically a deduction), and more money in savings. Sound like a lot of work? So is being broke!
2b. Expenses. This is referring to future expenses. You need to be able to track what is going to be spent. Control is the name of the game here. Follow these instructions: a. Setup a checking account for expenses. Whenever money is to be spent, it comes from this account. Income does not go to this account. Only transfers in and expenses out. Think of this as a holding account. b. Approve all your expenses prior to spending. Yes this means have a budget. Put the budget on paper or online/excel. When an expense is approved, the money is transferred for that expense into the holding account. c. Spend only from your holding account. Enough said. d. Pay your monthly bills in weekly increments into your holding account. If rent is $1000 and there are 4 weeks in the month, instead of transferring $1000 one time, instead transfer $250/week into your holding account. This ensures your bills are paid on time and it gives you a more realistic idea of how much money you really do have in your accounts when your bills are factored in. Put these systems in place and you will gain control over your finances.
3. Look at your accounts twice per day. Look at your accounts two times every day. First thing in the morning and at night. Look for changes, get familiar with the ups and downs of the accounts, which ones move slower, and which ones move faster. If you look at it more, naturally the balances will go up faster because it will be a focus of yours. If you feel like you don’t want to look at them, it is a sign that you are not taking responsibility for your money and attempting to avoid confronting the problem. Do it anyways. By doing this, you will actually begin to improve and feel the desire to inspect them more often.
I agree, this is a lot of work. So is being broke. That is a fact. Those who do not control their income, their expenses, and their assets are broke. I can promise you that. Now it isn’t 100% your fault. I believe you’ve been given the wrong information. If you’d like to begin learning more of the RIGHT information then go to my website. On the home page, a free e-book will popup after about 5 seconds. It is called How To Create Wealth. Download this e-book and begin reading it. Click here to go to my site and get the ebook.
Own Your Potential,
Jerry Fetta helps his clients make money, keep it, and multiply it.
He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf.
His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.
To get started, go to www.WealthDynamX.com/potential