| Before you can ever reduce your expenses and | | | | deduction. |
| increase your savings, you must first know where | | | | 3) At the End of the Day, Record all Expenses in |
| your money is going to. Many people share the same | | | | your Daily Expense Sheet |
| experience of having no idea where their $5,000 | | | | You can do this manually in the sample 'Daily Expense |
| salary went. 'How did I spend so much money?' 'I | | | | Sheet 'at the end of the chapter or you can key it in |
| thought that I should have $1,000 left at the end of | | | | electronically into a template. |
| the month, but it seems to have all disappeared!' | | | | I highly recommend you key it into an excel |
| With a simple yet powerful system which I personally | | | | spreadsheet, so it can automatically add up the total |
| use together with specially designed Microsoft Excel | | | | each month. |
| templates like the 'Monthly Personal Income | | | | 4) Use a Credit Card Whenever You Can (but always |
| Statements' and 'Daily Expense Sheets', you just | | | | pay the full outstanding sum every month) |
| need to invest fifteen minutes a day to manage your | | | | Again, this will allow you a convenient way of having |
| money. | | | | all your expenses recorded for you in the monthly |
| If you want to be wealthy, do not expect it to | | | | statement. |
| happen automatically. You must commit to spend | | | | 5) At the End of the Month, Update Your Monthly |
| time on your finances. Earlier on in this book, I talked | | | | Income Statement |
| about the millionaire's daily hour. Millionaires spend an | | | | At the end of every month, add up the total |
| average of an hour a day on personal wealth | | | | expenses from your daily expense sheet and update |
| management, while most people spend less than an | | | | your monthly income statement. At the same time, |
| hour a month, usually on paying bills. | | | | update all your income for the month. Deduct your |
| So out of this one-hour a day, you've got to devote | | | | total expenses from your total income to get your |
| the first fifteen minutes to do these five Money | | | | monthly savings. |
| Management Steps. | | | | You must use a system to track where every single |
| 1) Always Ask for a Discount | | | | dollar goes. Only when you know where your money |
| If it is not a fixed price store, there is a 70% chance | | | | is going, can you take steps to channel it to your |
| that you will get a discount if you just ask for it. If | | | | savings and investments. |
| you get a 10% discount, it is equivalent to earning an | | | | Doing this month after month may seem tedious, but |
| immediate 10% return on your money. Over the long | | | | it is absolutely necessary if you want to build your |
| term, you will save a huge amount that will | | | | wealth. Only when you develop the habit of |
| accelerate you even faster towards your targeted | | | | managing your personal finances, can you manage |
| net worth. | | | | the finances of your own business. So many people |
| 2) Always Ask for a Receipt | | | | financially mismanage their businesses into bankruptcy |
| Always get a receipt so that you can track every | | | | because they mismanage their own finances. Don't |
| single expense at the end of the day and, if possible, | | | | be one of them! |
| claim it as a business expense and get a tax | | | | |