4 || Debt Freedom

Not a surprise at this point! Remember, there is no right or wrong answer: 

1. How would you rate your current financial situation? 
2. What does millionaire mentality mean to you?
3. In your opinion, how smart do you shop?

Write. Them. Down. 

“People do not fail financially simply because they don’t know how to intelligently invest money – the journey to financial failure begins because people do not know how to intelligently SPEND MONEY!”
– Bill Keenan (Spend Smart)

A family unit or an individual, financially speaking, is very similar to a small business. Successfully learning to manage your personal finances, like a well-run business, is key to personal financial management and control.

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Most of us know how much money we make each month, the difficulty is keeping track of the money we spend. Tracking your spending is essential to achieving your financial goals. Using and regularly updating your cash flow management spreadsheets will help you gain control of your finances. In addition, tracking how your money is spent will help you determine if you are in a negative, positive, or neutral cash flow position. It will also help you to identify inefficiencies in your financial habits.

This module covers the following topics for cash flow management.

• The Flow of Money and the Spending Compass
• Cash Flow Management Statements
• Finding Leaks in your Financial Plan
• Journal of Expenses
• The Millionaire Mentality
• Smart Shopping
• Money-Saving Tips and Strategies for Reducing Expenses
• Family Participation and Financial Communication
• Increasing Cash Flow with a Home-Based Business

The Flow of Money and the Spending Compass

Every dollar we spend either works for us or it works against us. Understanding cash flow is more than just knowing where your money is going; it is having control over your expenditures and your choices. As individuals, we are what we choose. It is no different with cash flow. We choose how to spend and how to keep our money. An old saying states, “It’s not what you earn, but what you keep that makes you rich!” You can be broke at any income level or wealthy at any income level. The choice is yours to make. The path you choose begins with cash flow and learning to manage your money.

The Spending Compass

Examine the compass. Just as a compass gives us guidance and direction, the spending compass can show us where our money is going. It can help us make better choices when it comes to spending. You will notice that each point of the compass is labeled with expenditures. Each expenditure has its own financial direction. For the remainder of this section, we will discuss the financial direction of each point. The goal of this illustration is to make your money work for you.

Northern expenditures are assets that increase in value. A northern expenditure can be considered anything that you invest your money in that will work for you. It is an asset that will increase in value over time. Northern expenditures can include real estate, investments in education, long-term retirement accounts, savings plans, etc. They may also include purchases on items that will appreciate or hold their value, such as jewelry, antiques, art, and other collectibles including coins, stamps, etc.

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Investments in your spouse and family can also be considered northern expenditures, such as a date night or a well-planned family vacation. Many people would argue that these would be western expenditures (as explained below), but if you discover that the outcome of your expense is an increase or a positive experience, then you have made a good investment no matter the return on your dollar. Think of this as maintenance on your relationships. (Just make sure that these expenditures do not go on a credit card!)

Other northern expenditures include charitable contributions, building an emergency fund, and having a cash reserve. In addition, do not forget preventative medical and dental care and money spent on life and disability insurance. Lastly, a portion of your northern expenditures should include aggressive debt-reduction payments.

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Western expenditures are completely off the financial path and lead us away from our goals and desires. They are motivated by emotion, impulse, and desire, and they often demonstrate an extreme lack of control or financial maturity. These expenditures are unnecessary. These things waste your hard-earned cash. When you really think about it, you truly CAN live without these expenses.

Western expenditures are sometimes considered vices or addictions— ones that we do not have any control over. They are often convenience purchases and are no better than throwing your money away. Are you getting the picture? Can you identify some of your western expenditures?

Take time to evaluate those expenses that you could and should do without. Are you a smoker? Do you drink socially or more often? Do you spend money on lottery tickets or do you frequent the casinos and racetracks? These are examples of obvious vices that on which money is often wasted. Other examples are more subtle. For example, are you an impulse buyer or a comfort shopper? Do you feel the need to purchase expensive gifts for special occasions, birthdays, and holidays? Are you making credit card purchases with the hopes of having extra money to pay for your new possessions? Do you buy items from TV shopping networks or infomercials? Do you go into the grocery store and buy whatever strikes your fancy? Do you feel the need to always pay for other people’s meals and leave big tips? How much money is that vacation going to cost you? Will you pay for it all with a credit card? Do you eat out every day during your lunch hour? Do you stop on the way to work to get breakfast and coffee? The answers to all of these questions should help you better understand western expenditures.

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Now that you understand how this compass works, use it to identify where your money is going. Write down everything you own and everything you spend next to its appropriate point. You may be surprised at where your money truly goes. Once you have written down everything, evaluate how you are really spending your money and identify areas where you can improve.

The purpose of the Spending Compass is to help you identify which direction your money is going and to make principle, value-based decisions about where you would like it to be going. You can plan, manage, and reduce eastward spending. You should eliminate southward and westward spending as much as possible. Then the money that you save should be redirected northward—invested in your future through accelerated debt elimination, savings, and other wealth-building strategies. From this point forward, each time you are about to spend money, ask yourself, Which direction am I spending this money, and would it be put to better use if I spent it northward instead? If you make this a lifelong habit and become focused on spending as much of your money northward, you will be heading towards financial independence!

An adage states, “The first step to becoming financially sound is to know where you are.” In other words, if you do not know your current financial situation, you will not be able to plan for a successful financial future.

Well-managed companies manage the flow of money in a systematic way. They typically use some form of accounting spreadsheets. An individual or family unit should manage their resources like a business, and spreadsheets will help to organize one’s finances. You may utilize whatever method of accounting that suits you: electronic or hard copy. The important thing is that you put forth the effort to track and manage your cash flow.

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When your financial spreadsheets are accurately populated with data, you should be able to immediately identify areas of weakness and overspending. You may then use that data to plan and correct the habits of the past. A cash flow management spreadsheet tells you if you are living within your means, living paycheck-to-paycheck, breaking even, or if you are spending unwisely. You may then use this knowledge to make adjustments and ensure financial stability, which is simply learning to live on less than you earn. For example, an up-to-date net worth statement tells you what you own and what you owe. You can use it to identify liquid assets (cash equivalents) that you can use to meet daily expenses—without going into debt. It will also help you identify those liabilities that you want to reduce as well as those assets that you want to enhance.

Note: You may want to review the statements in greater detail in the second module of this manual.

Finding Leaks in Your Financial Plan

Another popular adage states, “You can’t plug the holes in your boat if you don’t know where they are.” It is important to know which expenditures are going west and sinking your financial boat. As mentioned earlier, vices are huge financial leaks that can quickly fill your boat with unnecessary water and could eventually sink you. More subtle expenditures, like eating out, weekend entertainments, gift-giving, home communication services (internet, cable, etc.) can also sink one’s financial boat. The following sections discuss some methods you may want to use to bail out the water that may be sinking your financial boat. Remember, the most important thing is to stay afloat. (You do not want to abandon ship because of bankruptcy).

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Journal of Expenses

Regardless of your ability to reconcile a cash flow management spreadsheet, you will need to keep a journal of expenses to identify where your money is going. To keep a journal of expenses, keep receipts for everything you purchase. You can use a spiral notebook, a day planner, a ledger, or a simple electronic file. And if you cannot obtain a receipt, make an entry in your journal with the date, item, place of purchase, and the amount that the item cost you. It is important that every dollar you spend be tracked. At the end of a week or month, you will want to clearly identify where your money has gone. As you track your expenditures religiously, it will become increasingly easier to hold on to your money. You will begin to develop what financial experts call the millionaire mentality.

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As described in his book, The Five Lessons a Millionaire Taught Me About Life and Wealth, Richard Paul Evans lists four key mindsets that characterize a millionaire mentality:

• • The millionaire mentality carefully considers each expenditure.
  • The millionaire mentality believes that freedom and power are better than momentary pleasure.
  • The millionaire mentality does not equate spending with happiness.
  • The millionaire mentality protects the nest egg.

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To become financially fit, you should carefully consider each expenditure and focus on needs, not wants. For example, if your car breaks down, you get it fixed because you need dependable transportation.

If your child is injured, you may need to take your child to the doctor. On the other hand, buying a boat is probably a want—especially if all you want it for is to have fun. Remember, your basic financial needs should focus on food, clothing, shelter, and security.

Perform a self-check on your shopping habits and ask yourself the following questions:

Am I an impulse shopper or do I plan my purchases?

Do I shop with a list that has been created by determining needs rather than wants?

Do I waste money on items just because they look good?

In contrast, you should use delayed gratification when it comes to purchasing wants. In other words, you should put off purchasing something that you want until you can truly afford it. It is not wrong to want nice things, but it is more financially prudent to delay purchasing wants until you are debt-free and able to pay for them with cash. The best vacation is one that is paid for before you walk out the door. It is the best because you know that you will not have to work to pay for it when you return.

Do you feel pressured to purchase things to keep up with the Joneses? In other words, are you charging things that you cannot afford just to impress others? In The Millionaire Next Door, Dr. Thomas Stanley has written a chapter entitled, “You Are Not What You Drive”. He further describes the millionaire mentality as not caring what other people think about your possessions. The same holds true for your wardrobe and your house. You are NOT what you wear. You are NOT the house you live in!

Note: Planning for major purchases by budgeting and paying cash will potentially save you thousands of dollars in interest payments. Even a large purchase, like a house, which is generally purchased with a mortgage, can be accelerated and generally paid off in 10 years or less.

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Too many people shop to feel better, just as some people drink to feel better. The result is always the same—when the high wears off, the results are guilt, pain, and debt. The millionaire mentality knows that money does not buy happiness—it just makes this sometimes-bumpy ride called life a little smoother. If you are feeling blue, the best thing you can do is provide service to someone who needs you. This will take your mind off your problems and place your focus where it will do more good. Another activity is to make a list of all the things that are good in your life. As Richard Paul Evans, and countless others have reminded us, “Those who forget to be grateful for what they have, often waste their lives and wealth looking for more.” Learn to develop an attitude of gratitude. Offer regular service to others and count your blessings. You will quickly discover that your life is full of meaning and shopping for pleasure will become a thing of the past.

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Remember, there is no such thing as a get-rich-quick scheme. It is usually a scam! Successful wealth builders not only protect what they already have, but are constantly searching for legitimate ways to create more cash flow and to increase their nest egg. They do not believe in gambling at casinos or with lottery tickets or with risky investments that promise exorbitantly high yields. They do not trust their money to anyone else unless they are positive that the person is completely trustworthy. They know enough about basic investing themselves to watch their long-term assets for growth and return. They do not get skittish when the market takes a turn. The millionaire mentality is savvy and smart. It is always learning new information through good books and by keeping abreast of the latest financial happenings. Lastly, when protecting a nest egg, an individual with the millionaire mentality would only, under the rarest and catastrophic of circumstances, take money from their long-term savings to pay expenses.

Smart shopping is a learned skill. It is learning when to buy and how to buy; and if performed properly, it could save you thousands of dollars over your shopping lifetime. For instance, most shopping is cyclical: fruit is less expensive when it is in season and more expensive when it is not; winter clothing is usually less expensive just before spring because clothing stores want to rid themselves of excess inventory; automobiles are less expensive at the end of each month as dealers have to pay a premium each additional month that a car stays on their lot. The trick is being a smart shopper is to recognize the trends and take advantage of them. Smart shopping will help you to maximize your shopping dollar—making it possible for you to pay for your needs and perhaps to pay for some of your wants.

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Saving at the grocery store can help you create additional cash flow. If you make it a goal to cut back on your grocery spending by $25 per week, you will be able to add $100 a month to your debt acceleration plan or to your net cash flow. The following pages discuss some simple ways to increase your cash flow through productive and smart shopping at grocery stores (many of them may also apply to shopping in general).

Shop with a List
The more time you spend in a store, the more likely you are to spend your money frivolously. The grocery store strategically places perishables that you need (milk, eggs, meat, etc.) in the back of the store. They want you to walk by other products as you make your way to the back. If you have a list, you are more likely to visit only those isles that contain the items on your list. You will be able to shop more efficiently, quicker, and make fewer impulse buys. (It is estimated that more than 50% of grocery purchases are bought on impulse.)

Check the Unit Price
The unit price is the price per ounce or pound. Usually, the greater the quantity of an item, the more economical it is to buy. For example, cereal is usually cheaper to buy in large bags than in smaller boxes because the price per pound is cheaper. Items that are packaged individually are usually more expensive than many of the same items packaged together. Meat that is packaged as a family pack (say 10 to 15 pork chops) is often less expensive (per pound) than cuts of meat that are sold individually.

In addition, just because you may be buying in bulk at one of the bigger club discount stores (Costco, Sam’s Club, or BJ’s), it does not mean that you are getting the best price per unit.

Beware of In-Store Advertising
Some store signs are designed to entice you to buy more. Just because a sign is advertised 5 for $5, that does not necessarily mean you have to purchase all five items; buy only what you need. Also, it is easy to assume that the products on the BIG DISPLAY at the end of the aisle are on sale. These are prime areas that stores use to sell more products, often at full price. Consumer Reports notes that these displays can boost sales by as much as 30%!

Location
Do you want to save money on cheese and cold cuts? Go to the dairy and deli case, not the deli counter. The cheese is often the same quality and costs a lot less. You will also find deli cuts of meat at less expensive prices.

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Convenience is Costly
Time starved consumers are immediately attracted to convenience foods (such as pre-packaged salads, fruits, sandwiches, and veggies). You will pay a lot more to have someone else create your food for you. To save money, buy whole food and do the chopping, shredding, and prepping yourself.

Save with Store Brands
Many store-brand items are made by the same name-brand manufacturers. Consumer Reports states that store brands can save you as much as 50% without sacrificing quality.

Shop the Circulars
Scan the advertisements you receive each week and look for deals with which you can stock up. However, do not assume the price for your item is a deal simply because it is in a circular—manufacturers often pay just to be listed. When prices are unusually low, buy more and store it.

Plan Your Meals
Flip through your cookbooks and recipes. Find meals that you have been wanting to try or make again. Write down a week’s worth of menus for three weeks and you will have created a meal plan for the month. Remember to eat the leftovers from your meals. When it comes to food, a saved meal is still a meal.

Saving money is important because it is the key to financial independence. There are many areas in which people have a tendency to overspend and under budget. If you spend less than you make, you are able to control your financial future. Discussed below are several ways you can save money.

Taxes

Did you receive a thank-you note with your tax refund from the IRS this year? Did they thank you for allowing them to keep thousands of your tax dollars INTEREST-FREE? Many Americans subscribe to an automatic savings plan by overpaying their taxes. You may be able to immediately increase your cash flow with tax dollars by paying only what you need to pay.

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Instead of overpaying your taxes, adjust your W-4 with an appropriate number of withholdings. The form has a work sheet to help you properly figure what you should be claiming. You can also visit the official website of the IRS at www.irs.gov. (Follow their instructions to figure your exemptions. They also have a Withholding Calculator (http://www.irs.gov/individuals/article/0,,id=96196,00.html) that is specifically created to help taxpayers estimate their withholdings.) You may always contact your human resource or payroll department to make changes to your W-4. Your goal is to break even with your taxes come April 15^th.

Utilities

Many utility companies (including gas, electric, power, water and sewage, and city-operated entities) will offer an equal-pay or budget plan that allows you to pay an equal amount every month (based upon past usage). This will allow you to equalize your utility bills by knowing exactly what to expect for those expenses each month. It only takes a quick phone call to find out if that option is available in your area.

Limit Media Expenses Many of the media expenses we pay big bucks for, and think we cannot live without were not so common 10 short years ago. Does your 12-year-old really need a cell phone? If so, have you considered a family plan with shared (and strictly enforced) minutes? Do you need to be paying $100 a month to watch television? Have you noticed how many cable programmings are reruns of old TV shows and infomercials? Do you really want to pay for that? You can often obtain a less expensive cable or satellite plan by rate shopping. Also, you can often have cheaper introductory offers extended by simply asking to extend the service at the end of your agreement! Did you know that many libraries loan DVDs and CDs for FREE (you can often place them on hold weeks before their release date to the public)? When you consider media expenses, ask yourself, “Do I really need this?”

Insurance

You should make it a habit to shop your auto and homeowner’s insurance premiums annually, especially if you have had no claims against them. Look to have your coverage carried under one provider and always ask for every available discount. Also, if your vehicle is more than 10 years old, you may want to consider dropping the comprehensive and collision coverage altogether and just keeping the liability coverage. Regardless of the age of your vehicle, unless a lienholder is requiring it, your deductibles on your auto and homeowner’s policy should be at least $1,000. This could save you hundreds of dollars each year. Make sure to check into disability and life insurance policies as well, especially if you have not bothered to obtain any quotes in the last three years. Consult with a broker who has access to several insurance companies in order to gain comparable rates.

Brown-Bag It

Hundreds of dollars can be saved annually simply by taking your lunch to work. For example, if you ate out every weekday for 48 weeks (allowing for vacations and time off), at a conservative price of $7.00 a meal, you will have spent $1,680 just on lunch. If you limited your lunches to twice a week and averaged $1.50 a brown-bag meal, you would save $792.

Additionally, keep healthy snacks on hand to avoid the temptation to feed off the vending machine. If you need coffee or caffeinated soda to kick-start your mornings, fill a thermos with your favorite coffee and/or buy your sodas in bulk—stash them away or have a refillable container that costs half the price for soda refills at the convenience store. Refill your own water bottles as well. Do you really need that designer water that costs two dollars a bottle?

Non-bottled water is free!

Turn it Off

When you leave a room, shut off the lights, turn off the TV, and shut down the computer (especially if you are not planning to come back right away). Adjust the thermostat by three degrees up or down as the season dictates. Switch to energy-saving bulbs as the older ones burn out. If you do not use an appliance or electronic device for an extended period of time, unplug them. These few tips can save you hundreds of dollars annually in energy costs.

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Do it Yourself

How much is your housekeeper costing you? What about the gardener? Involving your family in chores will cut costs and give them some bragging rights. It will also teach your children the value of work. If your children want money for their personal use (including the latest toys and gadgets), consider having them earn it! This will teach them discipline, how to save, and most importantly, how to appreciate and take care of their personal possessions. This does not mean that you dump all the work onto your children; families should work together to keep the house and yard clean and organized.

Pet Smarts

Does your pet need that name-brand designer chow? Store brands are cheaper and almost always have the same ingredients! Also, the bigger the bag, the more you will save. In addition, have you ever stopped to think about how much those animals are costing you with health care and other general needs?

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Bank Charges

How much does that checking account cost you every month? Do you pay your bank to save YOUR money? Check with your bank and find out about free checking options and free online banking. Are you collecting a whopping .5% with your savings account? As of May 2007, liquid savings held through most online money market funds can collect 5% or more. Educate yourself about banks and search for those who offer the services you need. You may visit www.bankrate.com for current rates and links. In addition, credit unions traditionally offer competitive services at reasonable rates.

Negotiate

Are you finding the best prices by negotiating? If you are unhappy about the price of a certain product, ask for a better deal! The worst someone can say to you is no. Shop around and use lower prices for leverage—some stores will match competitor’s ads. You can do the same with competitors in service-oriented businesses by sharing their competitor’s quotes and asking them to beat them. Deal with someone in authority; ask to speak to a supervisor when speaking to anyone over the phone. Negotiate discounts on minor defects on clothing and merchandise by pointing them out and asking for a lower price. Avoid being negative and demanding. Always ask nicely for the best deal, and as Richard Paul Evans reminds us, the seven golden words for getting the best bang for your buck are, “Is that the best you can do?” 

Research

If you truly want to save money on your purchases, you are going to have to work for it. The best deals and the cheapest prices are often unadvertised. No store wants to sell everything at the lowest prices and make the least amount of profit. Have you ever asked that one person who always seems to get the best prices on everything how they do it? They will most likely tell you that they do it through research. They spend the time to investigate a product rather than purchasing it on impulse at the mall.

There are many ways to conduct research, and there are many resources available to you. Online sources and free e-newsletters often have tips on saving money. They often provide grocery coupons and find unadvertised deals. Some deal saving websites and newsletters are cited below:

• Living on a Dime: A frugal-living newsletter (www.livingonadime.com)
• The Dollar Stretcher: A free newsletter with money-saving tips (www.stretcher.com)
• Living a Better Life: A free e-magazine with money-saving tips (www.betterbudgeting.com)
• Hot Deals Club: Daily deals and Internet links shared by deal seekers (www.hotdealsclub.com)
• The Coupon Mom: Free e-books and coupons (www.couponmom.com)

Regarding family finances, successful financial control is best achieved when there is participation and communication between all family members. Understanding the fundamentals of family budgeting and spending is essential. Proven spending skills and habits should be taught to every family member as soon as they are old enough to comprehend them.

Your life can take many different financial paths. Too often, people follow the paths of paying too much interest, living paycheck to paycheck, and taking 25 to 40 years to be financially independent. Financially happy families come to understand that the one and only path to financial freedom is to align their financial lives to fundamental financial principles. They have learned the power of provident living. They have learned what it means to be a cohesive family unit by working together towards common financial goals. The natural consequence of this path includes greater control over cash flow, a greater ability to make sound financial decisions, a more secure future, a clear path to financial independence, improved relationships, and more joy in life.

Note: A recommended Internet resource for families is Money Made Easy at www.moneymadeeasy.com. Their mission is “to teach kids, teens, and adults to be enlightened and wealthy.”

Benjamin Franklin once stated:

“There are two ways of being happy: we may either diminish our wants or augment our means. Either will do; the result is the same. And it is for each man to decide for himself, and do that which happens to be the easier. If you are idle or sick or poor, however hard it may be for you to diminish your wants, it will be harder to augment your means. If you are active and prosperous or young or in good health, it may be easier for you to augment your means than to diminish your wants. But if you are wise, you will do both at the same time, young or old, rich or poor, sick or well. And if you are very wise, you will do both in such a way as to augment the general happiness of society.”

Cutting expenses and plugging the leaks into your finances is not enough. It may produce the results you want, but not in the time frame that you hope for. Creating a positive, cash-flowing HBB is one way to augment your means. It is also one way to increase the margin you need to accelerate your debt payments. Choosing the right HBB could be the key to your success.

The question now becomes, “Which HBB is right for me?” Many HBBs offered through the media are from scammers and are usually not viable options—one often loses money with such ventures. Finding the right business, one that is genuine, reliable, and that will produce a positive cash flow with minimal investment, is the solution. 

Enjoyment

Will this be something that you can have fun with and look forward to, or will it just be another job? If you are not going to enjoy doing it, then do not bother with it; find something else. In a perfect world, you would make a living doing what you love to do. Would the HBB be a want-to job or a have-to job? Search for a home business that you would enjoy.

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Time

Ask yourself the following questions: “How much time do I have to put into this venture?”; “How much time do I want to put into this venture?”; and “How long will it take to make it profitable?” If the time factor kills the opportunity, at least you know before spending too much time (and money) on something that will not work for you.

Money

You can easily disqualify any golden opportunity by asking the following questions: 

How much is the initial investment?

If it is four figures, stop and run the other way! Unless you are looking to buy an existing business or a franchise, work-from-home opportunities should not cost you thousands of dollars to start.

How much can I potentially make from this business?

How much are you looking to make? Do you want something to eventually replace your income, or are you simply looking for something to increase your cash flow and/or to use for savings, investments, and fun money?

The opportunities for legitimate HBBs exist, but you will need to sift through the stockpiles of coal to find your diamond in the rough.

There are many types of HBBs. They all have their niches, their advantages, and their drawbacks. As you seek to find the right opportunity, have your own criteria from which to evaluate the opportunity; and make a list of what you are looking for in an HBB. When you begin to look for a business that suits you, keep the list handy and keep track of every opportunity that you want to investigate further.

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Hint: If you peruse websites for opportunities, make sure you “opt-out” (disallow your information from being shared) and DO NOT give out too much personal information. If you do so, you will possibly be bombarded with emails and inundated with phone calls from people who have purchased lead lists with your name on it.

AceSynergy.com (www.acesynergy.com) provides informative guides on HBBs.

Do you want to do something related to network marketing (commonly called multi-level marketing (MLM))? The key to MLM businesses is starting on the ground floor. Network marketing companies are designed like a pyramid with a down-line that is key to building wealth. Visit MLM.com (www.mlm.com) for resources and information about network marketing opportunities.

As a rule, there are red flags that you should look for when seeking any business opportunity. If an opportunity promises big bucks and no experience necessary, you can usually presume that it is not legitimate. Watch out for business opportunities that are nondescript (ordinary) and those that will not provide details about their business. If it sounds too good to be true, it probably is. Make sure to do your homework. You might also want to contact the Better Business Bureau and/or the Attorney General’s Office in your state to verify a business.

Note: The preceding is supplied as resource information only. The publisher is not affiliated with and does not recommend any particular business (or website) over another.

Author, Thomas Wolfe once said, “You have reached the pinnacle of success as you become uninterested in money, compliments, or publicity.” As you are working towards reaching the pinnacle, finances and cash flow will always be an issue. The first step to proper cash flow management is taking responsibility for your money—especially by knowing what you have at any given moment and by knowing precisely where your money is going (flowing).

As you track your expenditures and cut unnecessary expenses and spending from your finances, you will become more confident and disciplined. By utilizing the methods outlined in this module, you should soon discover how your finances are changing for the better.

Just 4 questions and do check your answers:  

What do the four directions of the spending compass represent?

How will a journal of expenses help you?

What are the four key mindsets that make up the millionaire mentality?

What are the eight elements of smart shopping?