|Let's grab two important items
from previous pages and put them together for this one.
They are so important, I want you to read them each a
second time and, then, we'll continue on.
Keep track of what you spend!
I know this sounds pathetically simple,
but there's more to it. I mean keep track of every
penny you spend. If you buy a pack of gum, log it!
You can use a spread sheet, like Excel, and make
categories (food, phone, rent, clothing, gifts)...
You can make it as specific as you like -- for example,
instead of just "food" how about groceries, fast food
and restaurants. The key is to stick all receipts
for the day in your pocket and enter them into the
computer each night.
You certainly don't have to do
this all the time... But, I'm telling you, if you
do this for just a couple of months, it will change your
spending habits (the bad ones). You will,
literally, stand in a store and think, "Dang, if I buy
this DVD (that I don't need), I'm going to have to enter
it into my stupid spreadsheet!"
blow your money on stupid stuff!
Do you start your morning with a $3
latte and a $1.50 muffin? (Which,
btw, have no food value whatsoever.
Hey, a candy bar will give you the same
thing and cost a lot less.) Do you
smoke a pack a day? (Don't GET me
started on this one!) What if you
gave it up and saved it?
That would be
month... Let's invest it at
$1,415,137.73! Yes, that's
dollars -- which is a lot better
than fat hips or black lungs!
OK, now that
you've read them again... What are
you going to do about it?
Think about what
you spend money on every day...
And find what you are wasting money on!
Can you save money by taking a sack
lunch to work instead of going out?
Can you save money by making your own
coffee at home instead of buying that
cup that costs $3-$5 at the place where
you have to wait in line? Or can
you give up coffee altogether? Can
you give up those cigarettes? Is
your cell phone bill over $35 a month?
If it is, you can make a cut here...
A cell phone is not for socializing.
It's for emergencies, business calls and
letting a friend know when you're going
to be late. Where can you cut?
Now, if you have
any credit card debt at all, I want you
to take that money and use it to pay off
those credit cards as soon as you can!
Pay off the cards that are charging the
highest interest rates first.
When that is done
(or if you are smart enough to not have
any credit card debt), I want you to
save that money and invest it!
Figure out how
much you can save each month by giving
something up and check
See how fast those few bucks a day can
grow! Try it for 10 years...
for 20 years... for 45 years...
You'll be amazed!