There is a path to wealth that you can follow. In this series, I'm explaining the rules of the wealthy. Check out this weeks post to learn Rule #2 from Dave Ramsey. Apply this rule to your life and watch your wealth begin to soar!
To become rich you don’t have to be a genius or have lots of luck. It all comes down to taking the right actions with money to begin building serious wealth.
Best of all, the actions you need to take are freely available. Lots of millionaires will gladly share that information with you if you are willing to listen and take action.
That’s why I created the Millionaire Mentors Rules Series. Anyone can build wealth with the right actions.
I’ve pulled together so many valuable nuggets of information from some of the smartest millionaires and billionaires in the world and created a list of “rules” that anyone can use to create wealth and become rich themselves.
Each week I’ll feature a new “rule” and I promise if you implement these rules you will become rich over time just as these millionaires and billionaires have as well.
-Dave | Creator of Let’s Automate Your Money
Rule #2 - Spend less than you make and invest the difference.
This quote is from Dave Ramsey. He is a popular financial educator with a radio show, courses, and more. Millions of people follow Dave’s financial plans to get their finances back on track.
This one goes back to rule #1, you have to set aside money or you will never get ahead. If you committed in Rule #1 to save some amount of money, you’re already ahead.
When money comes in, it’s important to not let all of it go. It’s important to keep some money for yourself. That is called paying yourself and that is the first step to begin building wealth.
Now let’s dig deeper and see if you are actually spending less than you make.
How much income do you make per month?
MONTHLY INCOME $____________________
How much are you spending monthly on bills and general expenses?
MONTHLY BILLS $___________________ (Electricity, Water, Cell Phone, etc)
MONTHLY EXPENSES $____________________ (Groceries, Gas, Entertainment, etc)
Now, let's figure out if your spending less than you are making.
MONTHLY INCOME $___________________
- MONTHLY BILLS $___________________
- MONTHLY EXPENSES $____________________
= MONTHLY REMAINING MONEY $____________________
Is there money left over after you pay all of your bills and expenses?
That money needs to be saved and even invested for better returns if you’re emergency fund has already been created.
Now… If you don’t have any money left over or you are even spending more than you are bringing in, then you have a problem in your finances that will need to be fixed before you can create wealth.
The first option is to increase your income.
You can do this by obtaining a raise at work or creating a side hustle to increase your income.
The second option is to decrease your expenses.
Are you spending money on things you don’t need? Review each bill and each expense to see everything you are spending money on.
Do you have things you don’t really need like cable TV, unnecessary subscriptions, or unused gym memberships that you can cancel?
These are like little leaches on your income and you want to minimize these as much as possible until you have money left over to pay yourself and begin creating wealth.
This is where you will begin to ensure you are always paying yourself first and will begin the process of building wealth.
I Will Save and Invest $_________ Per Day
Take action today and commit to paying yourself first.
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CREATOR OF LET'S AUTOMATE YOUR MONEY WITH MY LOVELY WIFE KRISTA