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In the previous article, “Budget Your Way to Billions,” Adam talks about paying yourself first. How do you do this you ask? It’s actually quite simple. First you should make this habit AUTOMATIC. Here is what I mean by this.

If you have a 401K or a savings account there is usually an option for the money to come right out of your checking account or direct deposit. This will automate the process so that the money you save is out of your check before you even get it. When I worked for a well known cellular company this is what I did. I even had the ability to link my direct deposit up so that a certain amount of money went directly into my savings account.

A few tips to consider when doing this. Start out saving AT LEAST 10% of everything you receive. If you get a monetary gift for your birthday, take 10% and put it away. If it’s pay day, take 10% and put it away. You get the picture. This may seem like a fairly small amount but in all actuality it can turn into a lot over a year.

A personal goal I have set for myself this year is to save exactly 10% of everything that I earn each month. I put this money into my ING DIRECT saving account. This account works great because it links up with your personal checking account and allows for you to transfer money with the click of a mouse. Did I mention that they pay you close to 5% every month on your savings? Check with your personal banks savings account and see if it’s even over 1%. You will be shocked, I was.

After you do this, ignore it. Forget that money is even there. The faster you learn how to do this the better you are. Mark on your calendar when a year has passed and check to see what you have. This way you will have a sense of shock when you see how much you have saved. The next thing you can do is find an asset to invest in. Check the article we have on assets so that you are familiar with what to look for.

From this point on you should be miles ahead of most people. Did you know that 21% of people out there believe that the best way to amass money is to win the lottery? If you fall under this category and you are someone who likes percentages listen to this. “You have a better chance of getting struck by lightening than hitting the lottery.” Yes, this is true. If you think the lottery is bound to come up in your favor then excellent, go for it. But if you have been playing for years and realize that there might be another way, do what we have done and save.

Saving is not the only thing you can do with your money but it is the first step. After you have saved for a year you then have the fun of finding those assets we have talked about.

So start by making your savings automatic, if your banking institution does not allow it, find another bank or deposit the money yourself. Either way, the sooner you are able to save 10% the faster your path to wealth will be. Save that money and good luck.

M.B.

Continue to Part III Budget Your Way To Billions-The Technique

Recently my 64 year old grandfather was diagnosed with a vascular disease. Within twelve hours the veins in his legs collapsed and he had to go through three surgeries. I’m sure that you can guess that this kind of stress reeks havoc on the body. Either way, here is why this was an “Eye Opening Experience” for me.

I was in the middle of work when I received the phone call that my grandfather was not doing well. Because of his bad habits when he was younger the veins in his legs clogged with cholesterol and could no longer take it. They collapsed and put him where he is right now.

While I was in the hospital I thought of it to be a good learning experience. I asked the nurse what had caused this type of disease. What she said, although common sense, shocked me. Here was her insight.

1.) Smoking

No big shocker here. She stated that smoking was a large cause of his disease. Although he had quit smoking fifteen years before, the twenty plus years he smoked before hand did its damage. Personally I used to smoke about five cigarettes a week. I considered myself a social smoker and whenever there was a get together you could bet I had a cigarette in my hand. Within the last five hours I have sworn to myself never to smoke again. That did it for me. Not to say that smoking was the only cause for his disease, but if it was a factor that was one less thing to knock off the list.

2.) Diabetes

Because of the foods that he ate the doctors diagnosed him with diabetes a few years ago. This played a large role in his vascular disease. I am not a doctor but I can bet due to his high blood sugar his body had a hard time fighting the cholesterol in his legs. From what I now know, diabetes runs in the family and mind my words I will begin watching what I eat.

3.) Over Weight

Being over weight has its side effects as it is. If you add diabetes and smoking on top of that, no wonder his arteries were clogged. Combined with the foods that he ate and his smoking habit, was surely the answer for his health problems.

Thinking back, if he would have exercised a few hours a week or ate less sugary foods I wonder where his health would be right now. He might not be as well off as most 65 year olds, but I can bet he would not be in the hospital. I can thank my grandfather for many things he has taught me, but if there is one thing that sticks out it was his lesson on health. Seeing him like that opened my eyes wide. From now on I will make sure I cherish my health and my ability to walk.

If you have ever been in a situation like this please leave a reply. Myself and others would love to hear what you have to say.

Also Check Out:

Eye Opening Experience #2: Stress Can Kill You

M.B.

Many times I have been asked by family and friends what an asset was. Every time they ask I give them the simplest answer I have.

Assets are something that puts money into your pocket.

If you own a home right now and you are making mortgage payments, paying taxes, and doing repairs, your home is NOT an asset. I don’t care what your accountant tells you, anything that takes money out of your pocket is a liability.

This goes same for your car, your boat, or even a rental property if the money that goes out is greater than the money that comes in. Adam and I have had a few experiences with rental properties as we will explain in later posts.

For now you need to realize that something as small as a gumball machine can become an asset. If you have a small gumball machine placed somewhere that is making twenty dollars a month and you are only paying five dollars for the candy, guess what? You have an asset. It might not be the type of return you’re looking for in order to retire but none the less it is an asset.

This holds true for anything you buy that makes more money than you spend on it.

How do I find these assets you ask? It’s very simple once you have developed your asset finding muscles. Like everything else the process becomes easier once you have practiced it. Do some research on real estate, tax liens, small business and the like. See what you come up with and you will soon find it easier to spot the money making assets that create wealth.

Adam and I have been practicing for several years now and are just now beginning to realize the amount of money that is out there waiting to be made. Keep your eyes open and read some of the other articles we have posted so that the path to wealth becomes a little easier for you. Good Luck!

The title above may sound dorky if not impossible at first glance. This post is a must read for those who are looking for that first step to get their financial house in order so then can achieve monetary Wealth.

I just read an article today in fact about “Ten Commandments of personal finance” These are good guidelines to live by but if it were so easy then wouldn’t millions of people be financially stable? I think the devil is in the details. I am going to talk about the the details of organizing things, but I must strongly urge that it takes strong discipline as well. My partner Matt has a great start here: “21 Days to Discipline”

In order to budget your way to Billions you must start by sitting down and figuring out where all of your money goes each month. Do you ever find yourself asking “Where does all of my money go?”. I’ve been there before and so has Matt. There are many financial software programs out there such a Quick books, Quicken, etc. that can help track your income and expenses. I have found that the first supplies needed to answer the above question are pen and paper. That’s right.. just a nice pen and a clean sheet of paper is all you need to get started on the road to financial Wealth.

I challenge you to first write down your billed expenses that occur every month. In business terms these would be your “fixed costs”. Examples such as car payments, car insurance, utility bills, rent/house payments, etc. These are your first priority and must be paid each and every month.

Secondly write down your expenses that are pretty much there every month but you don’t get a “bill” for them. These are secondary or “variable” expenses. You should include items that you could cut down on but probably never eliminate for your expenses. Things such as food, clothing, gasoline, cigarettes, household supplies, entertainment etc.

Thirdly write down any items that you may have bought, or services that you paid for last month that are not normal. These can be one time, or once every several month type purchases. Examples such as oil changes, new computer, gym memberships, etc.

Last but not least leave room for what I call Misc. (short for Miscellaneous). This is where I like to leave room for those things that I know I buy or pay for but just can’t think of on the spot. I will usually put $50-$100 in this category because I’ve got my expenses spelled out. If you are new to this, you may want to set aside more.

Now the moment of truth… add up your paychecks from last month, and subtract all the expenses you wrote down. If you have a positive number then you are in a good place to start. If you have a negative number then you will benefit even more from this post!

You have just created a template to project your expenses for next month! You should ask yourself: What things did I buy that were not needed?

$4 a day for cigarettes is $120/month

$2 a day for coffee is $60 a month.

Above, I ranked the expenses into “Fixed”, “Variable”, “One time”, and “Misc”. Once you have your finances spelled out there is one payment, one bill, one expense that should come before all others. This is a habit I personally use and recommend along with many other teachers of Wealth:

Pay yourself first.

You must decide how much this is. You have the power to make it as much as you want. This money is what you will use to invest in stocks, real estate, bonds, liens, businesses and more.

If you leave this post with no other lesson it should be to minimize frivolous expenses in order to maximize the outcome of your income.

Stop back for future posts about budgeting.

See Matt’s part Two: Budget your way to Billions Part 2

A.D.

Part 2 – Body Language

This next part will observe a few other signs to look for when spotting a liar. These ones coupled with the previous three are bound to have you on the right track. Keep an open eye and see what you find.

Initial Reaction

When talking to someone pay attention to their initial reaction. This often displays what they are really thinking but unfortunately only lasts for a few seconds. They often realize they are making a face or gesture inconsistent with what they are thinking and immediately try to cover it up. An example would be a friend grinning for a moment after you tell her that your husband just left you. Pay attention to these split second expressions so that your lying friend becomes uncovered.

Late Movements

Be aware of people that make gestures after they make their point. If you notice someone nodding in a confirming manor as they are saying something or before, there is a good chance they are telling the truth. Likewise if you notice someone making a gesture or movement after they have said something, watch out. They do this because they are trying to get their words out as fast as possible. Often after they have said something they want to seem like they are telling the truth so they make a movement consistent with what they have said. Or so they think. The trained eye can tell when someone forces a movement. Like I said in Part 1, stiff inconsistent movements always give it away. 

Watch that Smile

If you look very close you will see that when someone is lying their smiles will only be from the nose down. This is because they simply do not mean what they are trying to portray. If someone is sincere about their smiles their face will light up. Eyes, cheeks, and eye brows smile with the mouth. This is not the case with the liars. They only want to seem happy and joyful when in reality they are thinking something totally different.

Figuring out a lie is sometimes a hard thing to do. Now that you have these two parts to assist you, very few liars should slip through the cracks. Please leave a reply if you feel the need or have any other suggestions or tips. Until then keep your eyes open.

M.B.