I know that it's been a while since my last column and I appreciate the support of those who have e-mailed over the last few months. My schedule should allow me to continue to write now indefinitely.
The other night as I was going through our finances words came out of my mouth that I'm sure everyone's muttered before..."Where did all of our money go?"
It was somewhat embarrassing that the person who is writing columns on money management, can't seem to figure out why his savings account is not growing. It didn't seem like anything in life had changed, but looking deeper I found out what the problem was.
As I became lazy about writing these Road Runner columns, I had also taken my eye off the ball as far as logging what I was spending money on. My normal daily routine had time set aside to go through what I spent during the day. For a few months, that routine was put aside to watch television or relax.
Without even realizing it, old habits came back into place. At eating establishments I purchased large amounts off food with a drink and dessert, there was a purchase of a video camera (that I never use), and other here and there type purchases that slipped through the cracks.
It all goes to show that becoming wealthy requires a lot of patience, determination and consistency. But then again, to be successful at anything requires those traits.
5 Practices for more wealth
Here are some of the practices that I forgot and needed to re-implement over the last few months
Meet with your spouse
This may not apply to everyone, but for those who are married, it is essential to include your spouse on financial decisions. It makes no sense for you to sit in the living room every night trying to build up your nest egg while your spouse is secretly sucking you dry from underneath you or visa versa.
At the same time, discussing your plans with someone who is going to hold you accountable is key. If I'm out and see something that is pricy, my wife is there in my head reminding me of what our agreement was. At the same time she physically calls me to check in and make sure if a purchase she wants to make is "ok."
Life is always more fun with a partner and it will be ever so sweet when you can say that you made it to your goals "together."
Log your expenses
My system is pretty easy. When I buy something, I take the receipt and stick it in my pocket. At the end of the day, I add up all the receipts and see how much I spent that day.
Logging your expenses doesn't have to be rocket science with fancy graphs and tables, but knowing where you're spending your hard earned paycheck is common sense.
Large conglomerates like General Electric and IBM spend millions of dollars tracking their expenses. They are held accountable to their stockholders for every dollar spent. You need to be held accountable to yourself for what you spend your money on. Without a log to measure against, there's no reason for you to even set goals.
Turn off the TV
I've brought this up many times in this column. 1 to 2 hours a day is plenty, 3 on a special occasion.
My wife and I live in a small condo (1-bedroom) so it's hard to get away from the TV if it's on. The other day I had some business calls to make so I asked my wife to please turn the TV off as I didn't want the noise in the background. Something amazing happened ... She started reading a book, then, started cleaning around the house. Just to be clear, she helps clean the house on a normal basis.
The point is there are many other things to do and most people don't do them because they are glued to the TV. The extra four hours a day spent watching television can go a long way.
Create something
I believe that there is only one way to get rich in this world. That is to create something of value. This column is designed to help people create a nest egg large enough that it will provide income (that's valuable). The Google guys created an algorithm that made searching the internet easy. Musicians create music that moves us.
You will not be paid a large sum of money by doing your job. But if you create something that your company sees as valuable (it can even be a work ethic), they will raise your pay. It's hard to be creative when you're not using your brain (ex. Television, video games). In those types of activities the creation has already been done for you.
Set Goals
What is your ultimate goal? To climb Everest? To have a million dollars in the bank?
How will you get there if you don't know where you're going?
Write down your goals. Most goals can be broken down into smaller goals. Take it one day at a time. No one climbs Everest without preparing for it.
$1 million in 20 years. With 10% interest that's roughly $16,000 per year, which is $1,333 per month, which is about $45 per day. Now all you have to do is figure out how you can put aside $45 per day.
"$45 per day!! That's a lot of money!!"
Take the 4.5 hours per day that you spend watching TV and create something. You may find that $45 per day is a piece of cake.
