Friday, May 29, 2009

Biggest Money Mistakes Series - 1

Many people have gone from broke to multi-millionaire by following some simple concepts that allow anyone to move from debt to wealth, on any income. One thing you will note about money mistakes; they deal more about attitudes, beliefs and values, versus failing to review a restaurant receipt for errors. In the Biggest Money Mistakes series you will find the six most common attitude errors that prevent people from creating wealth, and the solutions to that faulty thinking.

Mistake #1. There is no reason to track my cash spending because it doesn’t add up to enough money.
People have the attitude that only large amounts of money are important and that small amounts of money are not. They will not be concerned about how invest a few hundred dollars, but only thousands of dollars. They will think nothing of spending $5 a pack of cigarettes or a cup of coffee and muffin at Starbucks when they can make the same things at home for 50 cents. The fallacy is you can’t get to the large amounts of money to invest if you spend all the small amounts. You must have respect for the small amounts too. Over a 30-year time frame, $5 per day can create a $1,000,000 portfolio when invested appropriately.

Solution: Use a small notebook or spending register to track all cash spending. You cannot create a change in your behavior you are unaware of it. Create awareness by tracking your cash spending. Track everything from 25 cents in the parking meter to a fancy dinner and tip.

Rennie Gabriel –
Author of Wealth on Any Income: 12 Steps to Freedom

No comments: