RULE 19: Getting wealthy? Know where you are before you start

Dr. (Mrs.) Maryam Abacha, Ex-First Lady of Nigeria

We’ve entered
the dark uncharted waters of Part Two
(Of The Book; Rules of Wealth) This is where we get serious. This is where we
start the real practical stuff. This is where you have to start taking a good
hard look at your situation, doing some planning and taking some action.

Getting wealthy
means being very honest with yourself and being willing to invest your time and
efforts into the quest for greater prosperity. Many of the Rules are behavioral
and changing your behavior is never easy. Some Rules will seem stunningly
simple, but for every Rule you have to ask yourself: ‘I may already know this –
but do i do it?’ The willingness to put in the graft and do something, make
things happen is vital.


(adsbygoogle = window.adsbygoogle || []).push({});

“The first thing you have to do is to take stock. Find out what you’ve already got, what can be used, what can be discarded or discounted, what you owe, what you are owed, what basically is your net worth”.

Before we can go
forward we have to know where we are now. Or rather you have to. When Robinson Crusoe swam ashore from his
shipwrecked boat, the first thing he did was check out what stores and guns and
ammunition he had. Once he knew that, he could assess the situation and move
forward.
So you are going
to swim ashore and begin your new life. The first thing you have to do is to
take stock. Find out what you’ve already got, what can be used, what can be
discarded or discounted, what you owe, what you are owed, what basically is
your net worth.
We’re going to
do a full financial audit on you and your life. If you don’t know where you are
before you start, you can’t really work efficiently towards becoming wealthy.
It’s a wise man who lays out his tools before he begins the job.
All you’ve got
to do is collect all the information – what you owe at the bank (or have in
there in your current account, deposit account, savings account), and what you
owe on credit cards. Also start working out what you spend on a monthly and
annual basis (and where you spend it).
Here’s your
check list. It may need adapting to suit your individual circumstances. Start
with the big figures to get a picture of where you are right now overall:
Starting
balance
+
Item
Net
Worth
House/mortgage
Credit/store
cards
Bank
Savings
Pension
Loans/overdraft
Assets/cars
etc.
Personal items
jewellery etc.
Investments
Debts
Now you have an
overall figure, you need to look at your typical inflow and outflow of cash on
a monthly or annual basis – you can choose which you assess, but all figures
have to be made either monthly or annually.
Item
Balance
(Put your salary
here)
Fixed regular
expenditure
(e.g.
insurance,
bills, food,
memberships)
Variable
regular
expenditure
(e.g.
shopping,
holidays)
Totals
This may not be
ideal for your circumstances but I’m sure you get the idea. Don’t be tempted to
skip this exercise. Even if your financial situation is none too rosy, it’s
good to face up to reality so you can take positive action to address the
situation. 
From The Book; The Rules of Wealth by
Richard Templar
(Read Rule 20
of Rule of Wealth on Monday at Asabeafrika)


Read-to-Wealth Series 
POWERED BY:
http://www.proshareng.com/

LEAVE A REPLY

Please enter your comment!
Please enter your name here