Budgeting! The richest men and women in history did it; From the Rockefeller’s to the Carnegie’s, up to today’s moguls like Buffet. Keeping a close eye on how the dollar comes in and out has made and saved a lot of money for these businessmen.

Before we dive into some basic budgeting there is the most important aspect that must be conquered. Personal accountability.

When it come to buying day to day stuff it is easy to buy a coffee here, a sandwich there, and… a guilty free donut. These items that we typically don’t record are a hole in our money pouch, we could be losing hundreds of dollars per year without even knowing!

Recording every item for could change the perspective you have on the all mighty dollar and earn you a lot of money.

Spend Every Dime on Paper First

Looking at the month and saying “this is what I’m going to spend, and nothing else” feels impossible. You have “unexpected” expenses that pop up or expenses that weren’t considered, and you feel as if you failed. Yet far from it, you just began a habit of observing your money!

How you follow sports or fashion, you understand the trends. You can quote stats and prices because you’re in the habit of seeing where to look. You have a feeling of who is going to be player of the year, you’re a tuned to the news. You see the latest clothes hit the runway, the streets, and a cover of magazines; you have an eye for it. So the same way you can train your eye and quote your finances.

At the University College of London, they discovered that it takes 66 days to form a habit. That’s only six and half weeks! In a month and a half, you can have a brand new pair of eyes to see your finances like you see your favorite hobbies.

Keep a Ledger: Recording the Leaks

At the meek age of 16, John Davison Rockefeller got his first job as a bookkeeper at a financing firm. There he learned the valuable lesson of keeping a careful record of every dollar that was spent. He saw where all the useless spending was and where they made the most return on their dollar.

So can you be a bookkeeper at a business like Mr. Rockefeller, at the company called You Inc. At You Inc. you are the CEO, and as CEO would you be happy with your performance? You give yourself a promotion or fire yourself? Well, the great news is if you would fire yourself, you can hire yourself back!

Keeping a close record of what you spend and what your income is every day or week will help you reveal where your leaks are. Too much coffee? Eating out too much? Too many donuts? This tool will allow you to see how much you spend and let you gauge to either cut it out or simply reduce the item (you can also do this with your time that you spend on tv, social media, games, or people).

Be Patient

At first, this will be a struggle if you don’t have the habit; it may even be emotional. Hold on and fight the good fight. If you’re in debt, now you can accurately predict when you can pay off your debt, when you can buy that car, and put a down payment on that home. These two tools are from a tool belt full to help you gain wealth in every aspect; health, money, family, and happiness. Life’s a journey that is not designed to be done alone. Partner up with someone to help you along, a spouse, a friend, a family member, or even here at Anava Financing we can sit down and help you out.

“Willful waste makes woeful want.”

-Eliza Rockefeller, John’s mother

Feel free to call Rudy’s cell phone for any questions about financing or your dream home at 416-830-1510

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