Business Building Corner

1. Understand how you feel about money. In other words, what is your relationship with money? How do you make financial decisions? For example, why is it okay to spend money on vacations but not to save for retirement? Question why you spend or don’t spend on certain things to understand how you make financial decisions. Only then will you know whether you need to adjust your thinking.
2. Make time to manage your money. Dedicate some time each week to plan out your expenditures for the following week. It can take as little as half an hour. Make sure you have easy access to your bank statements, credit card information, insurance policies, investment accounts, etc.
3. Keep track of your expenses, so you know where your money is going. For example, you may discover specific spending “leaks,” such as eating lunch out and/or buying a few beverages/snacks from vending machines every day. Once the leaks are unveiled, you can decide how to plug them up by making slight spending adjustments. What seems like a little bit of money can add up to quite a bit over time.
4. Spend in smart ways. This will increase your purchasing power and save you money. For example, look for sales and off-season bargains. Always compare prices—many stores sell the same items but at various rates. Buy in bulk when it comes to things you use regularly. If possible, use cash.
5. Evaluate your debt. Instead of just blindly using the credit card, be aware of how much you owe. Calculate how long it will take to pay it off. Debt can be in the form of a mortgage, car payment, interest on a loan, what’s owed on credit cards, etc. The rule of thumb is that if you are spending more than 20 percent of your monthly paycheck to pay off what you owe, you have too much debt and need to create a plan to reduce it. You may need to consider cutting expenses, working more and not using your credit card unless it is an emergency.

6. Invest in a credit report so you can see what your standing is in the eyes of those who can choose to do business with you. Everyone is entitled to one free credit report annually from the main reporting agencies. To order, simply go to www.annualcreditreport.com.
7. Start saving right now. Start your retirement income planning program, regardless of how young you may be. If you are employed or making money as an IBO, start saving, even if it’s only a few dollars month. It will all add up.
8. Set your financial goals. This is especially important when you are an IBO and not receiving a set salary each month. You have the ability to earn a great deal or nothing every month, depending on your goals and your effort. You have more control and with that control comes complete responsibility. No one else is accountable.
9. Plan out your expenditures, so there are no surprises. Write them down so you can see them daily. Identify the estimated amount of monthly income, list your expenses for the same timeframe, compare your earnings vs. your outgo, set priorities and make adjustments as needed.
10. Invest your money to help it grow. Put money aside for long-term goals, such as your children’s college education or your retirement. One way is to have money automatically deducted from your bank account and put into the investment vehicle you choose. Or, even if you set up a simple savings account under your child(ren)’s name, that is somewhere to deposit money.

The 10 basic steps to being smart about money should be revised over time to fit your evolving lifestyle and earnings. For example, being smart about money as a Silver IBO can be very different when you become Titanium and so forth.