Entreprenuers are more likely than anyone to become financially independent. But part of making sure you keep the money you get is spending time reviewing your financials. I can tell you from personal experience, that by spending more time really looking at my numbers, I have made smarter decisions, cut costs, and increased my revenues significantly without working harder. Although it’s not fun work, it has been rewarding.
I was sitting this afternoon digging into my book, “The Millionaire Next Door“. It was a wonderful gift from my financial coach. And I was particularly struck by a few things I wanted to share with you.
1) Making money is only a report card. It’s a way to tell how you’re doing.
Earlier in my career, I let the rush and adrenaline of “chasing the new business venture” keep me from watching my numbers,
seeing which aspects of my business were really profitable, and giving my greatest focus where it mattered.
Such as the other day, my financial coach challenged me, “It’s the end of the month, have your numbers ready.” To which I replied, “I am too busy with client work.” And he said, “if you don’t do your numbers to make sure where you are at, none of that client work will matter!”
That struck me like a lightning bolt. He was right.
In The Millionaire Next Door, they said that the highest wealth achievers spend 8.4 hours per month reviewing their financials and investments.
The financial underachievers on the other hand only spend 4.6 hours per month reviewing their financials and investments.
What does that tell you? What you focus on grows. If you spend more time reviewing the numbers, you’ll be rewarded financially!
My biggest mistake over the past 2 years was taking every penny I made and reinvesting it in personal development.
I am learning now, it’s not what you make, but how much you keep that matters.
I am also learning that it’s not what you learn, but what you DO with what you learn that matters.
2) Money should never change one’s values… Those who flaunt it won’t “keep” it.
- Traditionally the idea is that really wealthy people have so much money they can throw it all
around. They buy big houses, drive fancy cars, go to parties etc. I see some very big name marketers doing this. But the interesting thing to note is that it requires a lot of money to keep up this image. The really wealthy millionaries in the book, “The Millionaire Next Door” were simple people. They always lived within their means. They drove used cars, used coupons for groceries, and bought clothing at sales. It was because of their frugal and smart use of money that they had more money to invest. And thus these people grew their wealth more quickly.
Food for thought:
- It really doesn’t matter how much you are making in your business, as long as you are keeping costs and expenditures in check, you will be profitable.
- How much time do you spend reviewing your business financials?
I want you to be very wealthy. And where ever you are at in your life now, you have the power to do that. You’ve had it within you all along. You just need to embrace it.
How much time do you spend now to review your financials in your business?
What one step could you take right now to better your financial prosperity?
Let’s take the journey together shall we? Here’s to being wealthy and being smart managers of the abundance we are given!
Blessings!
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