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Here is a powerful yet simple technique that allows you to have more money for your business starting today!
There was a time in my life when I went from a tiny income to a six-figure income in a short period of time. From my experience, I found that if you don't control your spending, you don't see a huge difference in your financial stability even if there's a huge increase in your income.
Obviously, with a larger income you have more opportunities. You can buy more and do more as well as live a better lifestyle. You may feel financially stable but if you don't control your spending, then your financial stability does not really improve. It's not how much you make, it's how you control your spending that makes a real difference in your financial stability. If you make $10,000 every month and you spend $12,000 monthly, at the end of the year, you'll be $24,000 in debt even though you earned over $120,000!
Tom had a goal. Within two years, he wanted a monthly income of over $4,000. He accomplished his goal within that timeframe. The only thing missing was financial stability. Even though Tom increased his income, he also increased his spending by almost the same amount. He reached his income goal but the real goal was not $4,000 a month, it was financial stability, and he didn't accomplish that because as his income grew, so did his spending.
I'm sure you've heard stories from Hollywood in which famous people with enormous incomes have gone bankrupt. Most of the time, the problem is excessive spending. Celebrities usually make and spend enormous amounts of money.
You don't need to change your business drastically to become financially stable. You don't need to become cheap, you don't need to suffer, and you don't need to change your lifestyle drastically. You DO need to become aware of your spending habits and control your spending carefully.
I know what you're thinking: "How can I save when there's nothing left? All my income is accounted for."
You're right. All of your income is accounted for but you have spending habits you're not aware of. The only way to become aware of them is to get clear about the way you spend money. To keep more of your money, simply spend less of your money!
Here's an example. On your way into the office, you stop by and grab a coffee and bagel and the morning paper. It's no big deal, right? Lunch comes around and you're out another $5. On the way home you have a soft drink for another $1. It's only a few bucks right? Well, let's take the total, $8, and multiply that by 240 working days. That's $1,920 a year.
It's not my intent to tell you how to spend your money; my point is that you must be aware of how you spend it. In the above example, put away $1,920 a year in a good retirement plan and with enough years you'll end up with a worthy retirement fund.
The only way to understand your spending habits and see patterns emerge is to record your purchases. Every single one. If you don't, you won't be able to see the areas that will allow you to cut out excessive or unnecessary spending. You don't have to do this forever but do it for at least one month. To benefit from this article and have more money without increasing your income or profits, you must record your daily spending.
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