WealthWeek

If you’re trying to get rich, there are three easy steps that you can follow to get yourself from where you are to where you want to be. The process (in and of itself) is a simple one yet most people complicate it, particularly when they take on the third step.

Most people fall flat on their faces when they’re at the third step because this is the step that is action-orientated. It is also the step where all the typical challenges and obstacles spring to the surface. One challenge - the need to establish an extra source of income - presents a huge problem.

To become wealthy, you will have to make available a certain amount of cash every month to put away into investments (an amount which is determined in the second step). Most view the cash requirement as a huge obstacle and a reason to quit. There are a few people, however, who find ways to generate the extra cash for investing (irrespective of what their cash flow situation looks like) and these are the people who end up getting extremely rich!

If you don’t have the resources to make your plan work (at the moment), don’t use that as an excuse to abandon your plan. Instead, you must be persistent and figure out ways to make it all work. Lets say that you’ve determined that you need an extra $500/month so that you can invest it, follow through and discover ways to generate that cash (I’ll discuss more about this below). If your lifestyle makes it difficult to squeeze in new initiatives to improve your future financial picture, find ways to work around the blockages and commit to making changes. These are the typical challenges - if you can find ways to rise above them, you will start to realize a tremendous amount of success in your life.

A lot of what I’m saying here seems obvious, and it is, yet many people (who claim to know all this) do the opposite when it comes down to having to do the work. It always amazes me! Persistence is one of the many characteristics that you will require to become rich. Becoming a millionaire is not difficult - it’s the hiccups you’re are going to face along the way, as you fight against your subconscious programming, that’s the challenge.

I’d like you to read my post on the “Characteristics of Self-Made Millionaires” so that you can begin to familiarize yourself with what it will take (out of you personally) to rise above the challenges and grow so that you can get past the third step and realize your goals. Another article I’d like you to read up on is “Compound Interest - Turning $1,500/month into $4.4 Million.” I want you to see just how important compound interest is and what it can do to propel you forward towards wealth (sooner than later)!

The specifics pertaining to each step above is detailed in the Get Rich Plan, so I’m going to focus instead on how to find extra cash every month so that you can successfully increase your income to help you reach your goals.

HOW TO FIND EXTRA CASH

Lets assume that you have determined that you will need to increase your cash flow by $500/month to realize your goals.

What can you start doing today to make that happen?

Many financial planners suggest cutting down on your expenses and I agree - to an extent. It is a good idea to cut out the excess spending that won’t be missed. Whether it’s your daily coffee or those books and magazine purchases or weekend party funds - make a plan to cut out the spending that won’t be missed.

Now, I believe in living while you get rich so treat yourself to that coffee, but do it only once or twice a week instead of loading up on it every day. And, buy that book - just don’t buy the whole store. Likewise, enjoy your weekends (or, whatever else it is that you do), but draw your limits (have one beer as opposed to three or four). You get the idea…

Making cuts is easy, so why not do it? Usually, the cuts are hardly ever noticed (so long as they don’t cramp your style) and the savings are a huge bonus. When people do this, they’re usually quite surprised when they realize just how much money they were simply throwing away. You might even reach your goal just by making cuts - if so, then congratulations!

No matter how much you are able to save through the elimination of excess spending, you should still establish a cash machine for yourself and plan to save more. Once you get started putting funds away towards your investing efforts, you are going to quickly realize just how easy it is, which will in turn motivate you to apply even more towoards your investments. Usually, this is how people fast forward towards wealth - with just a few simple changes in their habits to start.

EXERCISE: How Much Cash Is Left Over?
Pull out your bank statements (or, go onto your online web banking system) and start looking at your statements. I want you to look at at least three months worth of statements so that you can get a good idea of where you’re spending your money. If you don’t use a debit card for purchases (and use cash instead), pull out your receipts. If you don’t have your receipts (shame on you), start working from memory.

Now, pull out a note pad and write your total monthly income at the top (incuding any side income, your spouse’s income, etc). In short, your total monthly household income.

Next, start tallying up your typical expenses and subtract them all from your total income to determine how much you have left over each month. Most people will find that their balance left over each month is actually negative, hence the credit card bills! That’s ok because you will be cutting out all the excess spending, starting today! Plus, you’re going to start a cash machine.

With your surplus balance figured out, it is time to start analyzing where to make cuts… and be brutally honest! Decide which expenditures can be cut, and by how much, so that your life is not drastically altered. Go ahead - snip, snip, snip!

BUILD YOUR CASH MACHINE

Now, the fun starts!

You are going to start a side business… Now, before you get nervous, realize that you are going to be starting something that is going to be managable and enjoyable. You are going to fashion a small, home-based business (yes, you will work form home!) around your talents.

Lets say that out of the $500/month required, you were able to find $200/month in savings from your current source of income. That would leave a shortfall of $300/month to be earned through your side business.

Putting this into perspective, lets say that you operate your business only three days a week (say Friday evening, Saturday and Sunday)… That means that during the entire month, you would need to generate only $25 for each of those 12 days you actually run your business. Only $25!

Truthfully, if you have a good business idea, you are going to most certainly make more than $25 per day. But, to put it all into perspective, that is all you would need to generate for each day (or, $75/week).

There are so many side businesses you can start immediately (today if you wanted) that will provide the extra cash you need to get started. It’s so easy, I’m always shocked by the fact that so many people quit when they realize they don’t have enough at the end of each month!

EXERCISE: What Business Interests You?
If you need inspiration, see the post I wrote for side business suggestions. Otherwise, take the next day or two to ponder what you could do on the side to generate your income goal. This is the time to be ambitious and stretch a little, so pick something that you enjoy which can still make you a lot more money than you’re probably counting on at the moment.

Zero in on your interests… What sort of demands and/or market oppportunties are present in the marketplace you’re targeting which match up to your interests? What could you run on a part-time basis (usually at home during your evenings and weekends) that will generate the cash you need and then some?

Ponder and make a list. You will be surprised at how many options you have!

As you can see, getting rich is not difficult by any means. Sure, you are going to have to put in some time and hard work (after all, not everbody inherits or marries into wealth). But, if you take small steps and build upon your successes along the way, you will achieve the freedom you seek.

To your Success,

Eff Jay