My Wealth Building Rules 7 – 10

The first month I officially decided to work at home I made $500, so you can imagine my surprise when my annual income grew to $50,000. As I work towards reaching the $100,000 mark, the most vital part of my process is my Wealth Building System; a series of rules that I follow to help me consistently increase my cash flow, live fabulous within my means, and make the most of what I’ve got.

RULE #7 PAY BILLS ON TIME
Using online banking and MS Excel I make sure to pay all bills on time, every month. All outstanding debt has been paid off or divided into monthly payment plans, so that I can keep my expenses in order. When your bills get out of control, late fees and high interest rates can take every dollar you make, which can make you feel like you are working JUST to pay the bills. Online banking and direct deposit agreements can help keep you current on your bills, so you can use the rest of your income to save, invest in your business, and live your best life.

RULE #8 CREATE A MONEY CUSHION
I always keep extra money around for rainy days, unexpected expenses, or impulse buys. When my Money Cushion gets low, I set up a monthly plan to build it back up because the price of entrepreneurship is the responsibility of doing everything on your own. If you don’t create a safety net for you when you need it, no one else will.

RULE #9 AVOID IMPULSE SPENDING
I wish I could just go out and buy a whole new home office, but I can’t and I won’t. A big part of building wealth is not spending money you don’t have. By putting aside money for the things that I want I’ve learned how to get everything that I want from my new car to fun Florida vacations without dodging bill collectors in the process. Although it can be hard to be patient when it comes to getting those things you really want, patience will help you REALLY enjoy all you have.

RULE #10 BE SMART WITH YOUR MONEY
If I need to spend $500 on software that is going to bring me in a ton of new profits I am going to do it. But if I see a cool computer for $500 I won’t just buy it because I think its cool. I’ve learned how to decide whether or not something is worth buying and you have to do the same. I believe those things that are a personal investment or that you’ve saved for are worth getting. For all other purchases come back to it later to see if the desire to buy is still there and then ask someone else for a second opinion. As you make money you want to be able to look around and see the fruits of your labor. Understand that spending wisely is something we have to teach ourselves every day. It’s not about being perfect at it, but simply making the effort to do better when you know better.

To read my 10 Wealth Building Rules Download or order the May issue of SistaSense In Print Magazine.