subject: Six Months To A Financially Ripped Body [print this page] My beloved and departed grandfather, who amassed a fortune by 1970s standards in cash and real estate, uttered the now wise saying to me, "It's not how much you make; it's how much you save.". Those words have guided much of my financial decisions over my lifetime. Now, here I am sharing that wisdom in a program to get your financial body ripped in six months. If you follow what I outline you will have a stack of cash at the end of six months but more importantly, you'll have the groundwork laid for wealth accumulation.
* Inspecting the weights - the first item that needs to be done is honestly account for the debts and obligations that are faced: the mortgage, car payment, health insurance premiums, home & life insurances, utilities, cell phone charges, grocery bills, gasoline, car maintenance, clothing needs, etc. Being financially buffed requires you look over all the weights you must carry and write them down. I prefer using Excel but if you're a bit more prudent, a pencil and paper work just fine. This is one of the most critical and time consuming steps because your success hinges on accurately grasping your financial situation. It's also the most painful and depressing step. However, you're not doing this to torture yourself but rather to get a hold of the beast and manage it. Have some faith in yourself. Use these figures to determine what your monthly expenses are. Include 3% of your net gross to a fund for a vacation budget and 10% of your net gross for all-purpose savings. While it will seem impossible to do just do it. You need to see money accumulating for "joy of life" things in order to stick to the budget.
* Account for all sources of income. This one's easy as most people don't have many revenue sources. Would that we did as it would make life easier.
* Subtract the expenses from your monthly income and the net should be zero. Why zero? Because that means all your money is accounted for.
* Review the monthly expenses and determine how that can be saved. A mortgage refinance to cash flow that helps, coupon clipping and shopping during sales to lower costs. Switching insurance providers to save on auto insurance. Unplugging electrical items not in use to lower electricity costs. You'll be amazed at how good you'll get at lowering the expenses and all the while you'll be saving up for up and coming auto maintenance (which will extend the life of the car and lower maintenance costs), you'll have money for vacations to build memories, and you'll have 10% of your net gross being saved just to accumulate wealth.
You'll be amazed at how easy it is to become wealthy. You too will believe what my grandfather always said, "It's not how much you earn; it's how much you save.". You can do it. I believe in you.
by: Henry Collins
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