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 [...]
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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 #4 – Face the Truth of Your Financial Situation Today – and Review it Frequently
Wealthy people know their numbers. I ask each of my clients and students to fill out several financial statements. You have to know where you are financially now to get to where you want to be. The biggest mistake I see is that people often do not face the truth of their money habits and [...]