Preparation

Preparation holds all the power to making your American Dream become a reality Creating and following a budget will discipline you to manage your money and make you feel a tremendous sense of power and accomplishment. Of course, before you can commit to creating and following your budget every day, you must first make the decision that, “taking control of your finances is a top priority.” It requires a bit of reprogramming, because you have to change the way you think before you can transform the way you act. That means, you have to perceive money in a whole new way, before you can handle it differently.

Your money is an extremely personal matter. You earned it; you can do with it what you please. However, when you step into the mindset of preparing for wealth with real estate, it is wise to bolster your buying power as dramatically as possible.
At the core of this dynamic is the concept of needs versus wants.

Now is the time to really analyze how much you spend on what you need as opposed to what you want. You can get as strict as you want. Some people strip down to all but the bare necessities, getting rid of cable television, cell phones, and club memberships. They avoid dining out or spending money on concerts, sporting events or nightclubs. While it may sound like a sacrifice in lifestyle, these kinds of choices ultimately result in maximum buying power. That makes the sacrifice worth it.

For you, it’s important to craft a budget that fits your lifestyle. Here’s how to do it. By saving receipts—even for small items such as gum, coffee or an ice cream cone-you determined exactly how much money you spend. And you became aware of how quickly those small purchases can add up to hundreds of dollars each month.

ONE: Calculate Income and Expenditures
Create a spreadsheet on your computer or on a sheet of graph paper. List all of your monthly expenses. At the same time, you need to figure out exactly how much income you accumulate every month.

TWO: Write Out a New Set of Spending Rules
You need to write down your budget plan and see it in black and white. This enables you to make new commitments regarding how you spend money

THREE: Start Slowly and Be Realistic.
If you’re used to buying whatever you want, whenever you want it, and splurging on the most expensive brands for everything, it may be wise to ease into a budget. Start by switching to the generic brands. Take your lunch to work a few times a week.

FOUR: Use Cash Whenever Possible
One good rule to follow is to use cash or a debit card whenever you make face-to-face purchases. That includes gas, groceries, food and drinks at restaurants, clothes, etc. This way, you’ll only spend what you have.

FIVE: Get Out of Debt
Saving money, prospering and preparing to purchase a house become extremely challenging when you are saddled by debt. If you owe large amounts of money, find a credible and reputable credit counselor who can help you sort through your debts and pay them off. Make sure that your credit counselor is endorsed by the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies.

STEP SIX: Splurge a Little!
Reward yourself for the hard work you’re investing in your monthly budget. Save a little money on the side for something special for yourself.
SEVEN: Update Your Budget Every Month
Make this work for you. If you pay off a bill, you’ll need to allocate where that money will now go. Or, if you decide to adjust the pay cycle—perhaps getting your cell phone bill and your land line/Internet bill on the same day every month—then adjust how and when you’ll make those payments. Think Positive: Don’t think of your budget as a chore. Instead, it’s a powerful tool for improving your life.

At Kellum Financial Group we offer: Hard Money Loans for Rehab and Investors, Credit Repair, FHA loans, Property Management, and Properties at a tremendous discount. If you are interested in becoming the next real millionaire in this down economy we can get you there starting at $1,500.00. Please contact me at 248-246-0942 Ext 701. Anthony@KellumGroup.com or visit our website www.KellumGroup.com.