A Free Course in Financial Solvency

Change How You Think About Spending Money

The first step in the program is learning how to change how you look at money, and to develop a new mindset about how you relate to your funds. At the end of this page we’ve provided some documents for you to utilize in tracking your financial situation, understanding your budget, paying off your debt, and increasing your net worth. This one is free, so enjoy!

To start with, let us think about three concepts that you will need to embrace to begin building wealth:

  1. Live below your means

  2. Learn how to be lucky

  3. Avoid taking on debt

Step 1: Live below your means

So, what is it that makes someone wealthy? We’re not talking about the wealth that the offspring of multimillionaires like Bill Gates and Jeff Bezos inherit, but rather the wealth every day, ordinary working folk who work hard for a few decades are able to accumulate. These are the “self-made rich.”

The self made rich are able to walk off the job and live off of the wealth they have accumulated during their working days. They can retire and live how they want. But how do they do it?

Do they hoard every penny they earn, and live an almost insane frugal lifestyle? Do they just work so much that it is almost unreasonable?

The answer is actually much simpler, and much more attainable.

The self made rich develop their wealth based on 2 simple things:

  1. Making a conscious decision to live slightly below their means

  2. Strategically investing the money they save

Because living below your means is the first checkpoint you have to pass to even have the money to invest, we will start there.

Realize that one of the goals of our Western economic and educational systems is for each person to take on a 40-hour day job and then spend everything they earn.

This is called Consumer Capitalism. It may seem sinister, but remember that we live in a free society, so you always have a choice. Making choices is the bedrock of being a free thinking human being. So let’s look at a few key choices you make each month.

The best place to start is to recognize where you are spending money for the sake of convenience, entertainment and/or gratification. This is spending that is really not necessary, and is in fact the money that you should be saving and investing, rather than spending.

Now, stop for a moment and think about this: you don’t have to stop drinking the occasional latte, or cancel your Netflix account. But what we are suggesting here is that you can, and should, spend less than you earn.

Once you have your budget under control, you should try to save a minimum of 10% of your income to invest.

So look at your expenses and cut the ones that are really unnecessary and you’ll see finding those 10% is easier than you think. To prove it, we’ve provide you with a few documents, which will help you examine your budget and make some changes.

 

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Spending Tracker

Use this sheet to track how much you spend, based on categories

 

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Personal Statement

Examine your financial assets and liabilities, to determine your net worth.

 

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Debt Repayment Schedule

Determine what your debts are and make a plan to repay them

 

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Estimated Budget Worksheet

Get into the details of your monthly budget - monthly income, monthly living expenses, and your total monthly savings.

 

When you’ve filled out these documents, move on to the next step: learn how to be lucky.