Jack Canfield walks through four steps to get control of your money: figure out your net worth, calculate what you need to retire, track where your spending goes each month, and read financial books. Start with one book this week.
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Hi there, Jack Canfield here, and today I want to give you four ways you can become more mindful about your money so you can achieve greater financial success. Most people are unconscious when it comes to their money. For instance, do you know your net worth? Do you know how much money you have in savings? Do you have a financial plan? These are just a few of the many questions you should be asking yourself regularly. If you want to be financially successful, you have to become more conscious about your money. Not only do you have to know precisely where you are, but you also need to know exactly where you want to go and what's required to get you there. Step one in becoming more mindful about your money is determining your net worth. If you don't know your net worth, you can work with an accountant or financial planner to calculate it, or you can use any of the free tools that are available on the Internet. Knowing your net worth will give you a baseline for where you currently are. Step two is to determine how much you need to retire, calculate what your financial needs will be when and if you retire, and be aware that retirement, by its very nature, requires that you be financially independent. A good financial planner can tell you how much in savings and investments would be required to produce enough in interest, dividend, rental and royalty income to live your current or future lifestyle without having to work. Financial independence frees you up to pursue your passions, to travel, to engage in philanthropic endeavors and service projects, or do whatever else you might wish to do. Step three is to become aware of what you're spending. Most people are not aware of what they really spend in a month. And if you've never tracked your expenditures, I want you to start by writing down all your normal fixed monthly expenses such as your mortgage or rent, your car payment, any other installment or loan payments, your insurance bills, your cable bill, Internet provider, health club membership, and so on. Then go back over the last 6 to 12 months and calculate average monthly expenditures that fluctuate, like utility bills and phone bills, food bills, your clothing expenditures, your automobile maintenance, medical expenses, and so on. And finally, keep a record for one month of everything you spend money on during that month, no matter how big or small, from gas for your car to a coffee at Starbucks. And add up everything at the end of the month so that you're consciously aware rather than unaware of what you're spending. Online programs like Mint or Learnvest allow you to easily track this information by connecting directly to your bank accounts. So check off those items you must pay for and those things you have discretion over and this exercise will make you aware of what you're currently spending and where you could cut back if you chose to. And the last step is to become financially literate. Not only should you stay conscious around money by reviewing your financial goals every day and tracking your expenditures every month, but I recommend that you also proactively learn about money and and investing by reading at least one good financial book every month for the next year. A couple Examples are Phil Towne's rule number one, the simple strategy for successful investing in only 15 minutes a week and Tony Robbins Book Master the Game. Now here's your homework to complete after watching this video. Go online and do some research on books that will teach you about money and help you improve your financial literacy and commit to reading at least one of those books a month. Now leave a comment below and share one resource, website or book you use to stay on top of your money that might be helpful to others. Thanks for watching and remember, nothing will change for the better until you do. Now, if you found this video helpful, make sure you like it, share it with a friend who may need it, and subscribe to my channel. For more videos like this one, and for some additional resources on how to achieve financial success, visit my website@jackcampfield.com.
