This last week, I had the opportunity to read the book "The 5 Lessons a Millionaire Taught Me." I am grateful for the ability I have to read and apply what I learn in books to my every day life. I love reading!
So, anyways, the first thing I did when I started reading this book, I decided to get all of my finances in order so I could live the "Millionaire Mindset" as it is called. I "decided" to be wealthy. This is first step in his 5 steps.
The reason I started reading this book was because I absolutely blew through my money last month. I had to make a change. Deciding to be wealthy made me think of what I needed and wanted in life. I started going through my finances and looking at my debts and my income. First, I detailed the dates and amounts everything was due and what I was earning each month. Then, I balanced which bills I would pay with each of my checks and what I really needed to do with my money. I set aside money specifically for tithing, gas to and from work and school, E-Mae supplies (i.e. diapers, wipes, clothes), and savings.
That lead me into the second lesson... taking control of your money. This step is all about knowing what you are earning, know how you are earning, and knowing where all of your money is going. That is why last week, I started a ledger on my spending and my earning and what I have in each of my accounts. I also made a list of the totals I have to pay and what I would have to do to get all of my bills paid off in full.
Pretty much, I am paying all of my minimums ahead of schedule and doing the snowball effect like Dave Ramsey says to do. He says to pay all minimums and then pay off the lowest one first. After paying that one, add that to the second lowest. I figure that is what I have to do to get out of debt.
Next, I have to learn how to keep a little bit of my money for myself or for future things I will need. I have to start saving some money for myself instead of bills or other people. This one, I don't have much to say about... sorry...
But, anywho... the next one is one I need to start doing. I need to start winning in the margins. This means I need to start earning as much money as I can and saving all of the extra instead of thinking "Oh! I can spend all of the extra money because I am already paying my bills." Yeah... no. This is actually a really bad mindset to start using because then you will always be living paycheck to paycheck to carry on your lifestyle you have grown accustomed to.
Instead of going out to pizza and spending my money on things I don't really need or care about, why not put all of it into savings so I can start saving for a vacation with my family or even be able to some day buy a house with a large down payment and a low interest and payment for the next 15 years. That is a lot better than being stuck with a huge house payment for 30 years that I am stuck under and can't be a stay-at-home mom like I dream of being. I would have to work all of the time just to be able to help pay the house payment or just rent for the rest of my natural life. I want to some day be able to retire also.
Part of winning in the margins is that I need to start earning more money than I currently do just by doing little things all of the time. I am trying to think of ways of earning money. I think I am going to go through all of my stuff and truly see what I need and don't need and just sell a bunch of it and put it all in my savings. That seems pretty simple to me :D That way, I have like at least 6 months worth of bills in savings and I also have the money to take E-Mae (and maybe a special someone someday) on vacation and be able to pay for it all.
The other part of it is saving as much as you can wherever you can. This is the "Millionaire Mindset." Can you pick a millionaire out of a crowd? Me neither... but they are all over the place. They don't have the need to do everything extravagant. They don't spend a lot of money and show off their money throughout the day. Only the "famous" people do, because they get more publicity if they do. They also file bankrupt after a little while of having their money. They don't have the sense to save even one portion of their money for anything. They just spend all they have, thinking it will never end. Eventually it all ends!
The last part is probably the most important one. I have been doing this for a long time and I have always found blessings every time. Giving back is one of the most important ideas of money. If you do not give back, you will start worshiping your money and then it will own you again instead of the other way around. You will find that helping people and giving money to those in need will make you feel more invigorated and like your money is worth more than it was before. Being a member of the Church of Jesus Christ of Latter-Day Saints, I pay tithing which is 10% of whatever I earn or receive.
I think the best thing about reading this book was that I was able to read advice from somebody who knows how to get from where I am in life to where they are. Richard Paul Evans is an LDS man who came from a home where he had to earn a lot of his own money. He is now a millionaire, author and family man. I think that is an amazing combination! Of course, he has other titles, those are just the ones I know off the top of my head.
This was a fantastic book and I think everybody should read it! In fact, I believe this so much, I have already loaned it to Fonnesy and Heather is next. Maybe when I am getting things done and I am able to be a stay at home mom again, I will fill you all in on how I did this... with details next time.
How do you save money? Is there a way you earn extra money? If so, please share in the comments below!
