Take Control of Your FinancesManaging Your Money
Dave Ramsey
I believe with everything within me that your most powerful wealth-building tool is your income. Ideas, strategies, goals, vision, focus and even creative thinking are vastly important, but until you get control and full use of your income to build wealth, you will not build and keep wealth. To build wealth, you will have to regain control of your income.
When we fail to plan, we plan to fail and so there is always too much month left at the end of the money. Everyone needs a written budget.
Sometimes I hear, “Well, I kinda, sorta know where my money is, ya know. I know what it is going to, ya know. I do my planning in my mind, ya know.” Having a written plan is absolutely necessary. Kinda, sorta knowing what’s going on with your money isn’t going to get you to your goals. Developing a written plan gathers, organizes, categorizes and analyzes information about your money situation. As you do your written plan, you will be amazed that answers to money problems will appear easily.
Set up a new written budget every month. At first it may take a while, but the process will get faster. My wife, Sharon, and I used to spend hours on our budget, and now we only spend a few minutes each month. Don’t try to have the perfect budget for the perfect month because you’ll never have those.
Spend every dollar on paper before the month begins. Give every dollar of your income a name before the month begins—that’s called a zero-based budget. Income minus outgo equals zero every month. Look at this month’s income and this month’s bills, savings and debts, and match them up until you have given every income dollar an outgo name.
"Don’t try to have the perfect budget for the perfect month because you’ll never have those."
Every dollar of your money should fit in a category, even if you need to make up new ones. The basic categories include saving, housing, utilities, food, transportation, medical, personal, recreation and debt. Don’t forget to include saving for things that aren’t monthly, such as Christmas, birthdays, taxes and insurance premiums. If you have an irregular income due to commissions, self-employment or bonuses, you still must do a written budget before each month begins. In your case, adding up what your outgo is each month is a form of goal-setting. It tells you what you have to earn in order to cover all the outgo you will have. Prioritize your bills, savings and debts in order of importance, not urgency. Ask yourself, “If I only have enough money to pay one thing, what would that be?” Move this way through the list. Stick to it! As the income comes in, work your way down this list.
It may take two to three months before your budget is correct, but keep trying. This is key to your financial success.
Dave Ramsey is a nationally syndicated radio talk show host and host of The Dave Ramsey Show on Fox Business Network. He’s a best-selling author of many books, including The Total Money Makeover.
Back to the Take Control of Your Life self-assessment quiz.
http://www.successmagazine.com/take-control-of-your-finances/PARAMS/article/816
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Take Control of Your LifeYour happiness is in your hands.
Deepak Chopra Richard Eyre Robert Kiyosaki Dave Ramsey Jim Rohn Brian Tracy
We can’t do it all, so we do most things poorly—on a good day. And we’ve lived like this for so long that we don’t even realize how very far we are from reaching our potential!
Most times, we’re just reacting, as though we’re being jerked to and fro by some gigantic remote-control device. We’re trying desperately to keep one thing or other from crashing and burning. And we’re doing well just to make sure the kids are off to school wearing matching socks, and we don’t forget the big proposal on the kitchen table after working on it most of the night, and we’re getting most of our bills paid before they’re 30 days overdue.
Goal-setting? Forget about it. Attitude? Do you really want to know? Happiness? Come on!
And what about managing our money and taking control of our income? How’s that possible when we live paycheck to paycheck? As for our relationships—who would know? We hardly see each other or talk.
The signs of a life out of control may seem subtle: Your kids are growing up before your eyes, yet you hardly know them; you dread going to work at a job you’ve had for years; you want to say “no” before you even hear the question because saying “yes” means adding something to your plate.
Does any of this sound familiar? Is it normal to live a life out of control? Does it have to be?
The first step toward regaining control is examining your life and determining where you have problems. So take the self-assessment quiz that follows. Then read the insights offered by some of the best-respected experts and thought leaders.
You can change your attitude so you’re open to opportunities, so you feel it’s possible to chart your own course and drive your life forward. You can set goals—and you can reach them! Despite the economic chaos, you can take control of your income and start your own business. You can build wealth. You can reconnect with your family. And you can be happy.
Is Your Attitude Your Challenge?
Do you believe that now is the perfect time to seize opportunities?
Do you feel confident that your future is full of prosperity?
Do you believe that you have the skills and abilities to meet your goals?
Do you look at the challenging people in your life as teachers rather than enemies?
If you answered NO to 0-1 questions, congratulations! You have a winning attitude that inspires others and keeps you on track to your goals. If you answered NO to 2-4 questions, you may have a great attitude when things are going your way but struggle to stay positive in challenging times. Check out Jim Rohn’s advice for changing your attitude to change your life.
Are You Pursuing Your Goals?
Have you written down your long-term goals?
Have you written down a few things you want to achieve by the end of the year?
Have you developed specific steps to meet your larger goals, plus a way to measure your progress?
Do you meet your goals regularly and set new ones?
If you answered NO to 0-1 questions, congratulations! You are a champion goalsetter. If you answered NO to 2-4 questions, you could be settling for status quo instead of reaching for your dreams. Read Brian Tracy’s advice on goal-setting and achieving.
Is Your Life Fulfilling?
Do you feel like something is missing from your life?
Do you neglect your hobbies or interests in favor of daily tasks?
Do you find yourself watching the clock, waiting for the day to end?
Do you fill your downtime with mindless distractions like too much TV?
If you answered YES to 0-1 questions, congratulations! You balance your personal interests and passions with your responsibilities to stay happy and fulfilled. If you answered YES to 2-4 questions, it’s time to make a change and bring the joy back into your life. It’s never too late! Read Deepak Chopra’s advice on creating happiness.
Do You Need a Relationship Checkup?
Do you opt out of family activities because of work?
Do you think you’re too busy to connect with old friends?
Has your social life dwindled down to your spouse or co-workers?
During stressful times, do you avoid “burdening” others with your problems?
If you answered YES to 0-1 questions, congratulations! You’re doing a great job of making relationships a priority in your life. If you answered YES to 2-4 questions, don’t let another day go by without refocusing your daily life on what’s truly important: people. Read Richard Eyre’s advice on relationships.
Do You Have a Grip on Your Finances?
Do you know where your money goes each month?
Are you allotting money each month to your savings goals?
Do you feel in control of your credit card spending?
Are you on track to build wealth with your income?
If you answered NO to 0-1 questions, congratulations! Your money management skills are in top form. If you answered NO to 2-4 questions, you could be creating unnecessary financial stress and keeping yourself from achieving true wealth. Read Dave Ramsey’s advice on money management.
Do You Control Your Income?
If you face a layoff, do you have an alternate income source?
Do you feel you have just as much control over your financial situation in an economic downturn as you do in a boom?
Do you have a plan for building wealth?
Have you taken steps toward starting that business you’ve always dreamed of owning?
If you answered NO to 0-1 questions, congratulations! You understand the secret to building wealth is owning your own business. If you answered NO to 2-4 questions, there has never been a better time to take control of your life and your income. Read Robert Kiyosaki’s advice on entrepreneurship.
http://www.successmagazine.com/take-control-of-your-life/PARAMS/article/812