Wealthy people decide what they value, and that’s where they spend their money.
You may spend money unconsciously or at least without any particular game plan. That’s why having written financial goals (Habit # 1) is so important.
Now I want you to take the Cash Flow Statement and see what you are valuing with your expenditures.
Do these outlays reflect your personal values?
Take the outline of this statement and create a budget for this month:
- What do you want to spend in each category?
- Where can you cut?
- Where do you want to add funds?
Promise me you’ll try this for two months. And stick to your budget as best you can. Then review it.
How did it feel to control where your money went?
You’ll want to make some adjustments after the first month. Then do it a second month.
Wealthy people have a plan though they may not call it a budget. But that’s exactly what their spending plan really is.
Next, Habit #14 – Creating Impound Accounts for Big Expenses