Budget Like The Professionals
The mathematical and mechanical portions of what we teach may be no surprise to you. We often discuss what The Money Multiplier process is and how to use it to your advantage. But a key piece of the equation for success lies in addressing human behavior. Without a handle on our spending habits, otherwise known as a budget, we can’t begin to address the problem at hand.
It’s sort of like when doctors treat a symptom rather than treating the underlying issue. It may provide temporary relief but the problem will just keep coming back until it’s addressed head-on.
The first step
You need to figure out why you’re creating a banking system in the first place. What problem are you trying to solve? Knowing this will help you to stick to your budget.
The average American family who makes over $40k plus per year, will, on average, make $2 million over their lifetime. But they stay in debt, making payments to others, never getting ahead, and becoming more and more frustrated about their financial situation for their entire life.
You’ve got to live on less than you make.
This logic is simple. If you’ve got more going out than you’ve got coming it, you’re going to be in debt, relying on others, and losing control of your financial life.
You need to decide for yourself when enough is enough and when true change is needed. You also need to make sure you and your spouse agree on a budget moving forward. It’s a lot easier to get where you want to go when you get little to no resistance from your significant other. And no resistance means it’s a lot easier to stick to the plan. Spend some time on this. Sit down together and paint the picture you both want out of life. Then invest your time and effort into creating a plan that allows you to make strides to that goal simply by living on less than you make. With the right plan in place, anything is possible.
Find a solution that works for you.
Your solution could be to eat out less or sell things around the house that you don’t use or need. Automating payments can help you avoid unexpected fees and also provide a discount. Every little bit helps.
But the plan becomes real when you write it down. Put pen to paper so you can see the numbers plain as day. Numbers don’t lie. So while it may be easy to lie to others or even yourself about where your finances are, you can’t deny the truth when it’s staring you in the face.
Be honest
Getting truthful about these numbers is the only way you can reach your final destination.
If you have 3rd party debts, we recommend paying the minimum balances on all of them except for the smallest one. On that one, let’s get the ball rolling and pay it off with a “quick win” using as much money as we can comfortably put towards knocking out the debt. We tend to forget this is a long-term plan. So stop worrying about the interest charges and balances. The idea is to get the smallest debt paid off to keep our minds in the game. Without this “quick win” strategy, we’re more likely to give up on our plan if we don’t see immediate results.
You may hear us talk often about using a policy to pay off your debt, but don’t put the cart before the horse. Get your mind right with your budget. Get a system of checks and balances in place where you’ll be able to stick to your budget and then add on our system.
Once you have your first privatized banking policy in place with us, we will provide some more advanced, customized resources for you to use in conjunction with your budget to excelerate your results.
Stick it out, stay strong, and I’m confident you will get there in no time.
When you’re ready to get started on creating your financial legacy or if you have more questions, most questions can be answered by watching this video. Start there and then schedule a consult with my team when you’re ready to begin.
