Wealthy people look at building wealth like a project — an accumulation of actions that need to be managed. They have systems for handling their money. You need systems, designed by you, that you will follow through with and revise as your financial situation changes. These systems include: Tracking your money—income and outgo Reviewing both [...]
Archive | March, 2009
Money Habit #8 – Track Your Income As Well as Your Outgo
Wealthy people track their sources of income monthly, too. Most of them have multiple income streams – not only from a job, if they have one, but from other endeavors that pay them money, like investments, rents or royalties, receivables from loan repayments made to them, even interest on their checking accounts. The only way [...]
Money Habit #7 – Keep Track of Your Cash and Expenditures
Most wealthy people can tell you exactly how much money they have in their pocket or purse. The money they do spend is tracked carefully. You need to know where your money is going – all your money. If you write checks for cash, or debit your checking account for spending money, do you know [...]
Money Habit #6 – Pay off All Your Credit Card Balances
The wealthy, whom I often call Money Masters, again, do not carry credit card balances. They NEVER pay credit card interest! I know people who have never carried a credit card balance in their life. You should become one of them NOW. You want to turn your credit card interest payments (debt service payments) into [...]
Money Habit #5 – Look at Your Debting Patterns And See What You Need to Change
Wealthy people take charge of their debt, and they use debt sparingly to create leverage. Seldom do they carry credit card balances month to month. If frequent debting has become your bad habit, here’s how to get a handle on the problem: Take your credit card statements from last month. Use your Cash Flow Statement, [...]