to Spend All of Your Money
And Still Have Some
(Continued from previous page)
this concept also works and works to build up wealth!
principles apply no matter how much money you make. I remember when
a musician I admire, a very famous American legend who had made
a ton of money, was in the news as the IRS was taking away his home
and most of his possessions why? Because whoever had done
his financial management had not spent his money so he still had
some. Sad but true.
wait a minute. What if you only make a certain amount and your bills
are higher? You may not make a six or seven figure income yet still
the concept should be applied to you and everyone you know! Here
are some of thebasics that anyone must apply financially.
need to figure out your average expenses over the last four to six
months. If youre self-employed dont forget your tax
look at your income. It should be more than expenses, right? Ill
have you know that most people are spending more. If you are spending
on an average more than you are making then ...you need to cutback
on your spending, so that it is lower than your income.
you have back-bills as well then you need to again cutback by 5
to 10% and use this percentage to pay-down the back bills.
arent finished as yet because this is only covering the bills
and youll die poor if you stop here.
is where things become really interesting or fun or energetic. This
next point is the very key element that will make you much more
stable and happier.
that you have the above worked out and you can pay everything and
your back-bills are being paid as well well add a mind twister.
I want you to now take money off of the top of your income
a certain percentage and I want you to spend it into an emergency
fund account. You want it gone and not easily accessible.
wait. You may think that if you did the math above there isnt
any money to take off the top for this special fund, right? You
are right, this is correct and this brings in how this works. If
you really needed some money in an emergency you could probably
come up with it, right? Most people can vouch this is true.
take a percentage off the top, say 10%, or even more. We had a client
that took 30% and weve heard of a financial planning expert
taking 50% off the top. Of course if you are breaking even or worse
and now we say take 10% to 50% off the top, you wont have
enough, thats correct. But this pressure is whats
needed in order that you get more income coming in. Youve
got to demand it. Demand more income and then really bring this
demand into reality.
A wife works with her husband in their small business, she handles
the finances. There is only ever enough income to be behind and
they are forever playing catch-up. She implements the above principle
into their business. She decided to take the money off the top and
buy gold ounces as it is readily exchangeable in an emergency and
yet not that easy to spend. A few weeks go by and she comes to see
us. They are now handling there costs and bills better and things
are moving right along except she has a problem. She has too much
gold. She started buying these ounces and throwing them in the back
of a file cabinet drawer and it had become too heavy. Fine problem,
we fixed it. This is the same person who had said previously that
if her husband found that there was money in savings hed go
right out, find a need and spend it. After beginning the new finance
program, as far as he knew there was a higher demand for income
from the wife who needed it to pay bills (spending the income) so
he went right out and made more income and they were now spending
money into the emergency fund account. The wife was happy and as
a result so was her husband. Amazing the difference a little money
in the bank will do for a relationship!
same thing happened with the professional we first mentioned above.
We took money off the top so he had to produce more, which he did
and he forgot about going out and doing some other type of work.
He continued doing the work he loved. Now that he increased his
income and was spending money into his emergency fund account he
was a transformed individual. And a very happy one at that.
you increase your demand for more income it can take on many different
forms. It may be that you organize your time better so that you
are more efficient. You analyze what you are about to do so that
you get the right things done and are thereby more effective. When
you really truly do this step as an action, as well as a decision,
you can gain tremendous results.
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