Most people who have built wealth didn’t do so overnight. They got wealthy by setting goals and striving to reach them.
A personal wealth-creation strategy is based on specific goals. In preparing your goals:
• Be realistic.
• Establish time frames.
• Devise a plan.
• Be flexible; goals can change.
SET FINANCIAL GOALS
When it comes to finances, people generally fall into the following groups. Where do you fit in?
· Planners control their financial affairs. They budget to save.
· Strugglers have trouble keeping their heads above rough financial waters. They find it difficult to budget to save.
· Deniers refuse to see that they’re in financial trouble. So they don’t see a need to budget to save.
· Impulsive seek immediate gratification. They spend today and let tomorrow take care of itself. They couldn’t care less about budgeting to save.
Knowing what kind of financial manager you are will help determine what changes to make.
DEVELOP A BUDGET AND LIVE BY IT
To help you maintain the discipline to save:
• Save every month.
• Have savings automatically deducted from your paycheck or checking account.
• Base your budget on what’s left.
In other words, get on automatic pilot and stay there.