This is another chapter in The Money System That Never Fails and continues one of the most important parts of the book, your wealth generation plan. This section covers the “defensive side” of the financial equation, with savings and expenses.
Savings
My savings strategy is as follows:
Save weekly for all savings accounts typically done on Saturdays. Savings in investments are done
automatically.
Pretty simple. Here is where you’ll determine which accounts you’ll save to: business (if applicable) and personal. Here is where you write in the percentages you’re using. There are sections for both the manual as well as the automatic savings. Alter this as you see fit.
Write any action steps you need. In the beginning, this will include setting up the accounts you need to use.
Write any savings goals you have. This may include getting up to a certain percentage of savings. This may include specific numbers in specific accounts.
Expenses
Here, my strategy is simple:
Work to minimize expenses and track monthly totals to keep an eye on them.
If you want to use a budget, here you can detail that. For instance, $XXX is used for food per month.
While I have budgeted in times past, I haven’t found that all that useful. What I have found is that as long as I track my expenses and make sure they’re not getting out of control, I don’t have to look at them except once a month.
Specifically, I use one credit card for each business, and one personally. I pay off the bill in full each
month. If ever I am unable to do that, then I take a closer look. When I had issues earlier, I wouldn’t use credit cards at all. More to be covered on expenses later.
As before, write any action items or goals you have in this area. This can include making specific
purchases you’d like to make.
This is the proper place to include charitable donations as well since they are a financial expense, even if they give you non-financial returns.
This is also the place to cover your tax strategy, as taxes tend to be one of the biggest expenses for most people.
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If you missed the first chapters you can view them here: