Thoughts on Success Part 6

Develop a Financial Plan

Managing your money is a key step in being successful. Here I am not talking about how much money you have. Money may or may not be a sign of success. I have had the good fortune to know many successful people. Some had lots of money others had very little. The amount of money was not related to their level of success. What I want to discuss here is how to use our money wisely.

Money is much like time as we all have a limited amount. Knowing that our money is being spent in line with our deepest desires & values goes a long way to helping create success. Once again our goal can give us guidance. Spending money in line with our goal helps us avoid all the latest gimmicks & fads. It may be new & trendy but if it doesn’t fit with my goals why would I buy it?

My personal experience has been that one of the easiest ways to feel successful financially is to limit your wants. No one can have it all. If we have the discipline to say “I have enough” we are well on the road to success.

The key steps to holistic financial planning are:

1. Determine your net worth.
2. Plan a year’s income.
3. Plan the profit you desire.
4. Define your weak link.
5. Plan & sort your expenses.
6. Do a cash flow.
7. Determine your ending net worth.
8. Monitor, control & re plan.

Do the necessary thinking & planning.

Before making any major decision or change it is vital to “work it out on paper.” If you can’t make it work on paper chances are it won’t work in the real world. If it works on paper chances are it will work in the real world. When making a change I suggest planning out for a minimum of 1 year. If you are making a major change projecting out for 3 years would be even better.

Points to Consider:

1. You are rich. Someday you may have money (Kenny Campbell).
2. Being born in North America is like winning the lottery.
3. If you can’t afford to pay cash how can you buy on time & pay double?
4. Security:
For he is not poor who has little;
Only he who desires much.

True security lies not in the things one has
but in the things one can do without.

5. Who is wealthy?
He who is content with what he has.

Measure a man’s wealth
Not by how much he has
But by how much he wants
And does not have.

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