Take Control of Your Money or It Will Control You!

Take Control of Your Money!

I have so many clients that tell me  “I work hard and make a good living but seem to have less than my friends who earn a lot less than I do.” Here’s the key, it’s not what you make but what you KEEP!

What happens if we turn on a tap of water and don’t put in the stopper? The water runs right through and the sink never fills up. We can try and add even more water (earn more income) but if the stopper (spending) is removed this will run down the drain too. Now what happens if  you put a stopper (stop spending) in the bottom of a sink and turn on the tap(income)? The sink fills up(savings)! Most people are turning the tap on harder (working harder to earn more income) and wondering why they are no further ahead. This is not rocket science but why are people not getting it!

Take Control!

Fixed Expenses – There is no point in worrying about fixed expenses such as utilities, car payments, insurance, telecommunications etcetera because we have to have these services.There are numerous ways we can save on these services but this is not the area that we are wasting most of our money.

Variable Expenses – This is where most people run into trouble: eating out, gifts,  clothing, recreation (movies, concerts, health clubs, sports). We tend to get into debt because of these items. It is important to try and figure out why we spend and what we can afford to spend. This is why you need to have a Cash flow plan for your spending. You would never head out on a trip without a map or GPS so why do you think that you can get from point A (where you currently are) to point B (where you want to be -goals and dreams).

Debt – This is where you can make the biggest changes. Put the stopper in the sink (stop using credit) and rearrange your current debts. You may be able to consolidate your debt by refinancing your mortgage, getting a line of credit etc…There are plenty of ways to control spending which I will address in future blogs.

Stop Dreaming!

Bad news – you have to spend less and save more.  Good news – it’s easy if you have a cash flow plan. People mistakenly believe that  rich people do not have to plan but the truth is they are rich because they did plan!

The journey of a thousand miles starts with a single step. Take that step! Each step will bring you closer and closer to your goals and dreams. Make 2013 the year that you finally stop worrying about money! I know you can do it!

 

 

 

5 Responses to “Take Control of Your Money or It Will Control You!”

  1. Lisa Says:

    That’s great! 🙂

  2. Lisa Says:

    That’s great!

  3. statements Says:

    Outstanding post however I was wanting to know if you could
    write a litte more on this topic? I’d be very thankful if
    you could elaborate a little bit more. Cheers!

  4. Lisa Says:

    Thank you! I am glad you liked it. I will it in mind for my next blog post. :-))

  5. Lisa Says:

    Thank you! I will keep that in mind. :-))

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