There’s a misconception that most people who become wealthy somehow got there through special knowledge, sophisticated investment strategies, or (most cynical of all) by “stealing” from others. All of these things are demonstrably false, as shown by the groundbreaking study of 10,000 American millionaires. But what is true is that these people follow a plan. They invest wisely, avoid debt, and they stick to a budget.
The steps to achieving wealth are fairly simple: stay out of debt, have an emergency fund, pay off your house early, and invest a substantial portion of your income into good mutual funds and index funds.
That’s basically the formula! No gimmicks, secrets, ivory tower theory, or anything of that sort.
But there is one particular thing that financially successful people do their entire lives that helps them get to that point. It’s something that 70% of Americans do NOT do regularly. And that’s creating and following a budget.
A Budget Changes Everything
The budget is the tool that successful people use to propel them to their goals and into better financial shape. This tool is simply how you tell your money where to go. It’s a process of writing it down each month, whether on paper or on an app like EveryDollar or YNAB. You, as the creator of the budget, are in charge.
It is simply impossible to make financial progress without a plan. If you aim at nothing, that’s what you’ll get every time. The budget is a way of setting goals for your money each month so that when the end of the month rolls around, you’re not desperately waiting for your next paycheck.
What I have found is that when my clients do a budget, they realize there is more money available than previously thought. Whereas they were living paycheck-to-paycheck, one major incident from a financial meltdown, the budget sets them towards a better position. That’s because they are finally striving towards a bigger goal each month.
Many people cannot even tell you where their last paycheck went. If there’s $100 in cash lying around, it frequently disappears and no one in the household knows what happened to it.
That’s called being normal. But I don’t teach being normal. I teach a plan that helps people take control of their money and escape the cycle of bondage and misery.
A Budget Will Propel You Toward Wealth
When my clients take control, they realize they have more than they originally thought, and suddenly they’re able to start paying off their debts, saving an emergency fund, and investing for retirement. Over a working lifetime, the saving and investing add up until they become the next Everyday Millionaires.
And all along the way, they’ve used the budget to propel them into prosperity. It’s not that complicated. It’s merely you telling your money where to go. Do this, and the entire dynamic of your finances changes drastically.
Never made a budget before? Let’s meet so we can walk through the process of freeing your finances. Schedule your free Discovery Session today!