How to win at the game of money step 2; Control It

In my last blog I started the conversation about winning the game of money, so now after a few months brain hibernation, the conversation continues. To win at any game we must learn how the game is played through study and lots of practice. This applies to the game of money as well as any other of life’s activities. So, the road to wealth and winning at the game of money we need to learn the rules of money and the process for acquiring wealth. As stated in my last blog entry the first step in the process is to” Value it”. This means that we must change the way we view money.

How do we need to view money?  We need to take on the mindset of the truly prosperous people in this world. "Prosperous people don't think of money as just colored pieces of paper adorned with pictures of famous dead people. They imagine it as seeds--money seeds with the power to grow into money trees, bearing fruit to fulfill everyone of their dreams. And they are right. Every dollar bill is a money seed." (Robert G. Allen, Multiple Streams of Income).

 Money is a important resource that we need to get the things we both need and want. And if we learn the game of money we will be able have and do whatever we want in this life and never want for the anything. Robert’s quote paints the best picture of what can happen when if we learn to value money and then to apply the second step of controlling it.

So, how do we transform our money seeds into money trees that produce fruit in such wonderful abundance that every one of our dreams can and will be fulfilled?

Step 1. Value It

Step 2. Control it

There is a quote from scripture that states that man was put on the earth to act and not to be acted upon. Another way to say that is that we all have the gift of agency or choice to choose the course and direction of our lives. To create a life for ourselves of our choosing in fact that is exactly what each of us does each and every day that we get up out of bed. I like the way Earl Nightingale puts it. “We are all self-made, but only the successful will admit it.” To exercise control over of resource of money is a choice and one of the most important choices that that we can make; because, if we do not start to control our financial resources then sooner or later we will be controlled by them.

The first step in controlling your financial resources (money) is to exercise proper money management by creating a spending plan for our income or preparing and living off of a budget.  

Why is this such an important step? When I first wrote my budget it was give me a clear and accurate picture of my income and my expenses, because all a budget is an income and expenses sheet. I was able to see graphically where my income was coming from and where it was going and the process allowed me to make better use of my financial resources. This process has aided me in laying a firm financial foundation for my life. This is what Dave Ramsey, author of The Total Money Makeover, has to say about creating a budget. Budgeting “is just spending your money with intention, you'll actually experience more freedom than before. Many people say they've found even more money when they created a realistic budget and stuck with it.”  http://www.daveramsey.com/article/the-truth-about-budgeting/

The process of creating a budget allows us to see where our money is coming from and where it is going, Robert Allen calling these streams and leaks. “Most people have one simple stream (or main source) of income: their job. This income flows into the reservoir of their lives, but the reservoir has leaks and the money flows out through them. Most everyone spends every penny they earn and then some. Obviously, the only way to have overflowing prosperity in our lives is to plug up the leaks and to add streams . . . to have multiple streams of income. It is critical to plug the leaks and keep the streams flowing” (Robert G. Allen, Multiple Streams of Income).  Your budget will help you discover and plug the leaks insuring that your financial reservoir is the feeling to overflowing.

Here are some key points that will insure that reservoir does fill to overflowing prosperity:

1.       Create and live by a budget.

2.       Save $1,000 for emergencies

3.       If you have personal debt (credit cards, car loans, student loans, ext) then increasing your personal debt and pay it off as fast as possible using the debt snowball method. Start with the smallest balance first then move on to the next one using all the money you used to pay off the first balance. Repeat this process until all of your debts are paid in full except your house.  

4.       Establish a 3 to 6 months Emergency Fund (Just in case your income streams dry up).
5.       While you are working this process of taking control of your income take steps to create additional sources of residual income. This is income that will fill your reservoir weather you work or not.

Nightingale Conant has some great educational programs that will aid you in your journey to financial freedom and independence. Just click on the top right link titled “Build Wealth” and you will be introduced to great financial educational products from some the best and most successful entrepreneurs in the world of wealth creation like Robert G. Allen (Multiple Streams of Income), Dave Ramesy (Financial Peace University), John Cummuta (Transforming Debt Into Wealth) and Robert Kiyosaki (Rich Dad Poor Dad)   just to name a few.

The following link is a great resource to aid you in the development and mastery of the art of controlling your financial resources. http://providentliving.org/?lang=eng  

If you are ready to add a new stream of residual income to your life then click on the following link and view the online business presentation and then contact me: http://www.usana.com/webhosting/johnnylwilson  

Thanks for reading.

More to follow. . .