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2 years ago
What you MUST do to develop assets.
Intro: When I was reading this great article, I remember a short video I was watching, many years ago
It was created by Tim Sales and it's called: What The Wealthy,The Middle Class, and the poor buy on payday!
I learnd alot from that and this article is a great reminder!
by Dr. Jeffrey Lant
What's your asset position like? If you're like most people you're getting older but you're not getting any richer. This is because you don't have an asset development plan in place. The money comes in, the money goes out... but your asset position doesn't improve. WHOA!
If that's you, this article couldn't come at a better time. Read it and reap!
1) Are you spending money... or are you using money to improve your life?
The average person gets money from a job, then uses this money to cover basic necessities and the occasional luxury. To develop assets you must see your position with new eyes, determined not just to spend money but use it to create assets. Money, you see, is nothing more than a commodity whose value is constantly shifting, thereby giving you the opportunity to grow assets daily. Here's what you can do to get into this exciting game:
2) Start by writing down and reviewing all expenses
Face it, when was the last time you actually wrote a list of all your ongoing expenses, then scrutinized each and every one to see where economies and improvements could be made?
Admit it, you've gone for months, maybe even years without systematically reviewing what you spend and how to improve your situation. But let's be frank: asset development starts with a clear and unblinking view of your current financial position. You MUST know what you spend and where cuts can be made.
3) Cut up your credit cards
Money is a commodity. And like all commodities it has a cost. Chances are the most expensive money you're buying is the interest charges on your credit card, 18% being commonplace. This is madness!
If you're using multiple credit cards and thereby incurring multiple credit card bills, your first task is to get rid of all cards but one.
Stop using these extra cards TODAY; then taking the savings you made from the review of your expenses, take what you saved and apply it to paying off the balance of at least one card. Continue to do this monthly until ALL credit card balances are a thing of the past.
4) Save daily
When you're just beginning to create assets, the development of good saving habits is crucial. Decide just how much you can save each month. Make the amount challenging, but not overwhelming. The amount should be reachable, not daunting.
Say you've selected $300 as your target monthly savings goal. Then put aside $10 daily. Open a passbook savings account at your bank; deposit $75 weekly. Doing this just once a month is NOT recommended; it's too easy to "forget" or skip, rationalizing that you can make it up tomorrow. Unfortunately, "tomorrow" never comes!
5) Empty your pockets, save it all
One very easy way to save is to empty the contents of you pocket or purse every few days... and put the money away.
If you're like most people, each year hundreds of dollars end up in purse or pocket. Treat these not as "change" but as the raw material for a successful saving plan.
6) Involve your family
One of the major reasons why most people fail to achieve their asset objectives is because they don't have support.
Right from the get-go, involve your family. Call a family meeting. Explain that in order to develop assets, you intend to review the family budget, including all expenses and all purchases from every family member, starting now; that you'll be looking for ways to save. And that to make this work, you will ask for and indeed require the support of EVERY family member. NO purchase is to be made by anyone until it is considered, reviewed and approved.
Believe me, it may take some "tough love" to get the full approval and working support of all, but it's worth it!
7) Get a financial advisor ASAP
Rich people, people with assets, have a financial advisor and you need one, too.
Even when you're emptying your pockets for spare change, you should be planning for the day when you need and have multiple advisors. Towards that end, start by doing the following:
i) ask your family and friends who provides them with professional investment advice
ii) ask your banker what options she has for you
iii) do an online search for "no load mutual funds". Giants like Vanguard, Fidelity, etc. provide solid advice and no-fee mutual funds. Talk to the representatives of at least two such funds.
No matter how poor your financial habits have been, no matter how self-destructive, you can turn things around. But you must start TODAY. The thousand mile journey starts with a single step. Get a pair of scissors, cut up your credit cards, empty your pockets, create a budget and review your expenses. It's all good... and all represents progress. Right now you're working for money, but by following these steps money will start working for you. You'll see!
About The Author
Harvard-educated Dr. Jeffrey Lant is CEO of Worldprofit, Inc., where small and home-based businesses learn how to profit online. Attend Dr. Lant's live webcast TODAY and receive 50,000 free guaranteed visitors to the website of your choice. Republished with author's permission by Arnljot Blindheim http://Little-Known-Business.com.
What The Wealthy,The Middle Class And the poor buy on Payday!
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