Thought for today:
Getting rich the program way is not about luck, or leveraging debt. It is about setting up circumstances where wealth is more likely, where your needs are taken care of first.
We all know that riches aren’t measured purely in money. That’s fantasy. And circumstances like illness or caring for others can slow the process down. But increasing wealth is possible.
A member shares:
“After seven years in DA, I’ve eliminated $100,000 in debt. I work my program with integrity.
“Wealth is about the total package though – my spiritual well being counts. I had to have a work-life balance that maintained my emotional balance.
“The greatest challenge in the beginning was the discipline of following the program. I decided to use the Tools of DA even when I didn’t feel like it, and it slowly pays off!
“It takes a lot of persistence, but it works if you work it!”
Here’s how:
- Stop incurring unsecured debt. This is thing that brings great thinkers to their knees.
- Start tracking what you earn and what you spend. You need to measure where you are at today. For every penny you earn or spend, write down the date, category, and dollar amount. You can get a pocket sized notebook, or use an app like Mint.com that connects to your checking account to make it easier.
- Summarize your income and spending categories in monthly reports. Doing this by hand or using electronic spreadsheets is your choice. Whatever makes sense for you. Use a tool like our Monthly Income and Expenses Template if you like. The result must be a snapshot of your monthly income and expenses each month
- Create a spending plan from the numbers you’ve been tracking. For each spending plan, decide on target dollar amounts for each category in the month ahead. Where can recurring spending be decrease – Housing, food, utilities, transportation. Keep a calendar with dates when bills are due. Seek deals for one time charges. Your spending plan includes a prudent reserve, and savings, however humble. It’s a start.
- Put together a worksheet where you can list and see all your debts (if you have them) in one place, including contact information and dollar amounts owed, interest rates for each, with account numbers. This will get you thinking about debt reduction.
- Consider retirement accounts. Start contributing to your company retirement savings plan, if they have one and if your company matches retirement account contributions. Compare your interest rates on your debt worksheet to the percentage your company pays you when you make retirement contributions. Then add 5% to your company’s number to arrive at a probable rate of return for retirement investments (since the investment in a mutual fund is likely to increase at least at that rate). If the company number is greater, start contributing as soon as possible. Each month, look to increase the contribution. If you have debt that is costing you more than what the company investment would pay you, read on…
- Negotiate debt wherever you can, if you have it. If you have incurred unsecured debt in the past, start closing the accounts. If you have been overdue for a long time, ask for payoff terms. Is a reduced interest rate available? If the debt is old and re-sold, ask the creditor what they can do for you.
- Downsize where you can. If you own a big home you no longer need, consider selling it or renting space in it. If you have a storage unit filled with junk, learn about decluttering and organizing
so you will no longer need it. Keep the older car as long as you can.
- Try to increase income (obviously important). Figure out what your boss needs before she does if yo have a full time job. Request a raise during your next job review. Take advantage of free training online to learn a skill you can use on the job or through entrepreneurship. If so inclined, learn how to earn passive income with a niche online business.
- Spend any cash windfalls in thirds. One way is to split windfalls into thirds. Some members like to negotiate debt payments with one third, make an investment with another third, and spend on something memorable for the third. (You have to live after all!) Others use the last third on prudent reserve. The idea is to include at least two thirds of the money to increase your net worth.
It takes discipline, time and humility to get rich. Doing these things are likely to increase your wealth and improve your lifestyle.
You will know where your money is going, what it is earning, and where you are heading with it. You will have more free space to enjoy in your home. You will discover that there is enough time, money and love to spare!
Ask:
Am I doing the footwork to get rich? If not, why not?
Meditation for today:
Know where you want to get to. Create a Vision map for your dreams of the future. Write down where you would like to be in the future. Imagine prosperity in the mornings. You will find your attitude spring alive with new perspective!
Affirmation for today:
“I will spend a quite half hour by myself at some point today in order to get a perspective on my money.”
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