"Take Control of Your Finances" from a Future Millionaire

Ok Future Millionairesses keep your  composure we have an eligible Future Millionaire in the building.  Mr. Andrew B. Jones is a highly intelligent and financially savvy gentleman who will be joining us on Mondays for our Money Monday portion of "The Future Millionairess Diaries".  Please pay close attention to his advice.  With his help you can be on your way to attaining, sustaining, and maintaining your wealth.

~ Future Millionairess
 
 

"He's not a Businessman, he's a Business Man"

 
 
Take control of your finances

Today’s Money Monday session is focused on tangible steps that you can take now to build habits for your millionairess days. There are several things to note before I begin. First, the habits that you have now are the habits that you will have for the rest of your life, if you do not work deliberately to change them. This applies to good and bad habits. Secondly, the same strategies that will make you millions are the ONLY ways to keep your millions, abandoning them once you “make it” will send you right back down with the thousandairesses. Lastly, the millionairess lifestyle and responsibilities should begin long before the millions are in your account.

Ok, let’s dive into a few quick Money Monday tips to shorten your trip to millions:

1. Make a budget: You should have a WRITTEN document with how much you plan to make, spend, and save each month. Start with how much you have in your account, add what you plan to make, subtract what you plan to spend. More importantly, stick to your budget. Make allowances for miscellaneous and unexpected expenses, so you will have no reason to spend a dime that isn’t planned for on your budget. If you are constantly going over-budget on something, change the budget so it is more realistic, so your budget is reasonable for your lifestyle. (Microsoft Excel and Apple’s app iXpense are the two programs I use to keep track of my budget)
2. Separate your money: You should have at least 3 bank accounts (Checking, Active Savings, Passive Savings.) Checking accounts are for the daily expenses and transactions of life. Use them as the main account for everything you do. Active savings is a percentage of your income that you transfer to a separate account to save up for something imminent (Spring Break, Louis Spring Collection, a birthday shopping spree). Be careful, as this is where you will pull from in an unexpected cash emergency, like a car repair or DC ticket. Passive savings should be the SAME percentage of your income as active savings, and this is money that is NEVER touched. This is money you are saving for a capital investment (house down payment, business incorporation, etc.) Passive savings is the most important of the three accounts, because it is the culmination of everything you have saved for the future, not just what you’re using for the here and now. 
3. Use cash: A helpful if not inconvenient way to keep track of money spent is to use cash (that stuff we had before we got debit cards.) You’d be surprised how quick an account can be drained if you just swipe your card every time you purchase something. Those Starbuck’s trips add up quickly. Instead, take out a fixed amount at the start of every week and try to make it that week without having to take out more cash or swipe your card. If you’re really aggressive, you will stop carrying your debit card around. When you find yourself back at the ATM on Tuesday, it will hit home how much you are actually spending each week.

That’s all for now, I will be back next Money Monday with a few more tips, including:

1.  Making serious spending cuts
2. Making your money work
3. Improving and maintaining credit

Andrew B. Jones