“The secret to my success is determined by my daily agenda – by the daily decisions I make, and the daily disciplines I practice.”– Dr John C. Maxwell

I heard that statement a few years ago, and it is something that has always stuck with me, because I fundamentally believe that it is true. Another way of saying it is that, if what and where I am today is a direct result of my previous actions, what I am tomorrow depends on what I do today. The problem is, most people underestimate what they can do today, and over estimate what they can do tomorrow.

Now, if you think about this for a minute, you will see how true it is.  You constantly hear “I’ll do it tomorrow.”  I know I say that, and then, when it doesn’t happen tomorrow, it becomes “the next day,” then the next, then the next, until either we hit a crisis and do it at the expense of something else, or we just never quite get around to it.

Let’s take an entrepreneur building a coaching business as an example: how can you get new clients if people don’t know who you are? And how can people know who you are if you’re not publishing informative articles on your area of expertise, and attending networking events to expand your circle of contacts? So how many articles are you posting on the internet this week? What networking are you doing today? But maybe you’ve got writer’s block, so you put the article off to tomorrow, and traffic is really bad tonight, so that networking event can wait.  You get the picture.

The same is true in your finances. If I am struggling with debt, what can I do to get out from under it? Can I call the credit card companies and beg for a break? Can I tear up my bills, move, and hope they won’t find me? You certainly could, but it wouldn’t be recommended. Instead, wouldn’t it be better to look for ways to generate multiple streams of income, shave some money off your expenses, learn how to pay a little less in taxes, put a solid debt plan in place, and move forward freely, rather than constantly worrying about how you are going to handle those student loans?

What expenses can I track today that can be used as tax deductions? How can I work a bit more today to earn the money I need to cover those expenses? What financial seminar can I take or what book can I read today to build the money management skills I need to take control of my finances?  How can I alter my spending habits today so that I have to worry less tomorrow?

Oscar Wilde said “every action of the common day makes or unmakes character,” and, beyond that, everything you do today affects where you will be tomorrow.

All of this is a process. No one expects you to flick a switch and suddenly have amazing organizational skills, perfect credit and financial savvy.  But there are two kinds of pain in this arena: the pain of discipline, and the pain of regret. Now, especially when it comes to ensuring a strong financial foundation, we can play now and pay later, or we can pay now and play later. The problem is, payment compounds, and increases with time and missed opportunities. So if you suffer the pain of paying now – of discipline, of doing the things you need to do long after the mood in which you said them in has gone, of paying attention to your actions today – tomorrow’s rewards will come far sooner than you imagine.

Visit http://www.AbundanceBoundSystem.com and join our community of entrepreneurs, committed each moment to creating the success that they deserve.

We have spent the past few blog posts teaching you how to prepare yourself for success as a small business owner.  You know how to treat your business finances as an entity separate from your personal finances, you know how to organize and keep track of your expenses, and you know where you are starting on this financial journey. Great!  Now what?

Not a thing in your financial lives will change if you do not do the footwork.  You need to consistently devote the time necessary to improve your financial situation.  As entrepreneurs so many of us are great starters.  We begin to gather knowledge and make great plans, thinking of the ultimate outcome, but then we often do not fulfill our plan by taking the step-by-step actions required to bring us to that outcome.

Have you ever uttered, “I’m too busy”?  Maybe “I can’t afford it” sounds familiar.  These are excuses and you need to look closely at where they have gotten you so far.  Are you even one step closer to the financial prosperity you wish to have in your life? The financial pressure that exists for many small business owners is so distracting it brings an almost unbearable amount of stress into our lives and our minds.  If we make a little time every week to take care of our financial situation – such as reading, attending a seminar, updating your financial records, working on investing, adding extra income streams to your business model – we would actually free up time later on.

So what exactly does “priority” mean.  A priority is a “must”, something we “must” do, and a “must” is very different from a “should”.  We all have lists of things in our lives that we “must” do and we all have lists of things we “should” do.  There is a critical difference between the two.  For instance, I must pay my bills every month on time.  This is something I would never allow myself not to do.  However, I really feel I should exercise every day.  Somehow, as much as I know I should exercise, I often allow other things to get in the way.  For others, exercising every day is a must, and they are prepared to sacrifice to get that exercise time in.

I suggest to entrepreneurs that, for the period they are working with me in private coaching or in our Prosperity Bootcamp, they make implementing the steps of The Prosperity System^TM a “must.”  Generally, once we see our financial pictures start to shift, we will not go back to doing things the way we did before.

So, analyze your time.  How do you use it?  Where do you waste it?  Be completely and brutally honest with yourself.  At http://www.AbundanceBoundSystem.com you’ll learn our step by step process, which makes it easy for entrepreneurs to set aside a few hours every week to devote solely to the endeavor of creating financial prosperity.  This practice will help you develop the sound knowledge that will allow you to start building the financial wealth you deserve and desire.

Now think about your financial goals.  You want to create success in your small business, build wealth and enjoy prosperity in your life.  You plan to save some money and learn how to invest and create multiple streams of income.  What type of people are you around day after day?  Are they trying to gain wealth and prosperity like you, or are they like those people who hang out in front of the television eating junk and complaining about their lot in life?  In other words, are you associating with fellow entrepreneurs and other individuals who just talk about changing their financial life or are you associating with people who are doing something to make it happen?

Of course we are not suggesting that you dump all your friends and run out to find new ones.  Our close relationships are based on far more than simple wealth and financial criteria.  However, what we are suggesting is that in order to build success in your small business you must start expanding your circle of friends and acquaintances.  Find the entrepreneurs who are living the kind of life you want, the people who are trying to build their wealth, and get to know them.

There is a common theory that if you make a list of the five people you spend the most time with and take an average of their income, the resulting figure will be fairly close to your own earnings.  This ties directly into Step 8 of The Prosperity System – surround yourself with other wealth builders – and is part of what makes this step so important.  If you are making the choice to focus on improving your finances, it will be a far easier journey if you have other people in your life that are doing the same and who will support and encourage you on the journey.

So how do you meet these people?  Make a list of some networking groups and associations that you can join.  Think about people that you would like to meet and join the groups they are a part of.  If you are interested in learning about a particular type of investing, participate in a financial seminar or join a group that focuses on that.  As you meet new people, don’t be afraid to talk about what you are up to in your life and business.  Share your goals and ambitions.  Opportunity will not find you if you stay silent.

Part of what makes the process of building financial stability and independence less scary is that you do not have to do it alone.  Being a part of a community of other like-minded individuals will help bring you to a new level personally, professionally, and financially.  Open yourself up to new associations and friendships so that these new relationships can help feed your ambition.  It’s just like having a friend with whom to go to the gym.  It adds extra incentive to keep moving forward and achieve your goals.

Visit http://www.AbundanceBoundSystem.com and join a community of entrepreneurs committed to creating wealth and prosperity. Then build the life and business you want with their support and encouragement.

These factors make it even more critical that we develop financial consistency.  Keeping a handle on the ways of managing our money that are within our control, will go a long way towards building financial stability and avoiding the financial roller coaster that plagues many small business owners.

Following are 5 simple steps to becoming financially consistent:

1.  Pay Yourself First

This is the corner stone of any long term financial stability, let alone wealth. Every month, you should put a set percentage of your earnings into a high interest savings account, and then don’t touch it until you are ready to invest with that money.  This is not the “rainy day” account that you dip into when things get hard, nor is this the “splurge” account to get something special for yourself as a celebration. Money is only withdrawn from this account to buy assets with – an asset being defined in this case as something that either makes you money, or appreciates (increases) in value (so a new car would not be an asset under this definition!). Do this consistently and, over time, you will build up a very nice amount of cash to be investing with.

2.  Schedule Regular Money Days

“Money Days” are key to your success as a small business owner. This is simply a day that you set aside to work on your finances.  The jobs might include filing, entering receipts into a computer program, balancing bank statements, etc.  Now, it does not have to be a whole day, of course – unless your situation merits it… usually because you haven’t done one for a long time! Personally, I set aside a couple of hours every other week, and then a meeting with my accountant over the phone every couple of months. Doing this accomplishes several things: Your accounts will remain orderly, allowing you to continually track your financial progress and identify potential problems early on.  Money Days also allow you to focus on your finances for short, isolated periods, which frees up your time to think about and do other things… like growing your business.

3.  Forecast your spending

Forecasting is the process of allocating where your money will be spent. Visit http://www.AbundanceBoundSystem.com for tools specifically designed to help small business owners, network marketers and solo entrepreneurs determine exactly how they are currently spending. You’ll then decide which categories cannot change (rent, for example) and which ones can (groceries, entertainment etc).  You can then make strong, educated decisions about what amount you will CHOOSE to spend monthly in each category.  This tends to be far more empowering (and effective) than just blindly trying eliminate entire categories, That is the big difference between this process and traditional budgeting.  Budgeting encourages cutting out “frivolous” categories entirely and forgets the fact that we’re human!  You won’t stick to something long term that makes you feel deprived.  But as opposed to going to Starbucks every day, can you go every other day? Or order a Tall instead of a Venti?  Making these kinds of choices in several areas can make a huge difference to your overall spending.

4.  Keep business finances separate from personal

You must have separate bank accounts for your personal life and your small business.  Identify one credit card you will use for personal expenses and a different one to be used for business.  You would never see the CEO of Kinkos write a check for company expenses out of his personal account, and yet many small business owners do this all the time.  Separating your finances will allow you to clearly see what your business is spending and earning.  It will also legitimize all the tax deductions you are taking.

5.  Regular financial learning

Keep doing what you are doing right now! We take time to take business classes on marketing, using the internet, and creating products… but we expect our finances to somehow take care of themselves. Not only is this not realistic, it is dangerous, as we can make numerous serious mistakes blundering around while we try to find our financial way. The reason that most small businesses fail is because they are unable to financially sustain. Knowing this, doesn’t it make sense to put some time into financial education now, so that you have the skills to develop the financial stability that will keep your business around for the long term? Carve out some time for financial seminars. Learn how to manage your money as an entrepreneur and how to invest it so it can grow faster.  Learn the strategies to handle your business expenses, reduce your taxes, and create multiple sources of passive income.  It will be well worth it in the long run.

So there you have it.  Consistently doing these five things will significantly improve your financial picture over the coming months and years. Visit http://www.AbundanceBoundSystem.com to learn to incorporate each step into your daily and weekly life. It requires only a tiny time commitment of time, but the dividends from doing so will last forever.

So the question is: how do we balance the need for a social life with the realities of a tight budget?

Here are three suggestions:

1. Don’t try to keep up with the Joneses. The need to “look good” is almost beaten into us from an early age, so avoiding falling into this trap can be hard.  Explore discount stores instead of name-brand shops.  Suggest coffee with friends instead of drinks (a $1.50 coffee is much easier on the wallet than a $12 cocktail). You’ll often find, especially when it comes to socializing, that people are really glad not to be spending money, as they face many of the same financial challenges that you do.
2. Forecast your fun. Forecasting is the process of projecting what your spending will be in any area of your life. Visit http://www.abundanceboundsystem.com and register for our next free financial seminar. We’ll teach you how to calculate exactly what you’re spending, on average, across the financial board. You can then determine exactly where you’re overspending, and also, where you can spend a bit more if necessary. The key to success in this process is avoiding denial.  In other words, it’s rarely advisable to try completely eliminating a category where you’ve been spending up until this point.  (i.e. “I’m not buying any new clothes for the next 6 months…”)  There’s nothing like “forbidden fruit” for enticing you back. So instead of going into a month saying “I’m not going to go out at all” – simply allocate a certain amount for “Eating Out,” or “Drinks,” or whatever other category you want.  Then, when the end of the month comes around and you’re near the end of your allocated funds, suggest the local diner instead of the local bar for that next get together.
3. Work together to save money. Given that most people are in the same boat when it comes to their finances, be the first one to broach the subject of a budget with your friends. There is such a taboo in this country about discussing money that most people go through life never saying more than the obligatory “I’m fine…” (usually a lie) or “I’m broke…” (but with no real attempt to solve the issues causing that situation). Break with tradition and work with others on ways to both save and make more money. You’ll be amazed at the ideas that come out of brainstorming these things with like minded individuals, so give it a go! At the very least, it will take the pressure off the next time you say “Make mine a water…”

Hopefully these pointers give you some ideas about how to have fun but still make sound financial decisions at the same time – a key to your financial stability and success as a small business owner. Again, it’s never about saying “I won‘t go out until I’ve made $X.” That may work for some people, but I have yet to meet them. Instead, map out your spending, and put your money towards things that you’ll enjoy.  Talk to your friends and work things out together. Visit http://www.AbundanceBoundSystem.com for the guidance and support that will help you stick to your plan. Your bank account and stress levels will thank you for it.

What we want to achieve with this post is nothing grand. No big concepts or sweeping statements.  Our goal is to provide just a few simple, practical things you can implement right away that can save anywhere from a few, to a few hundred, dollars a month.

The first step to getting a handle on your finances is taking the time to sit down and figure out in detail how you are spending your money. This is obviously easiest if you keep your financial records in a computer program like Quicken or Quickbooks – which you should absolutely be doing as an entrepreneur.

Something fascinating happens when you start to really look at your finances.  All of these things on which you didn’t realize you were spending money, will suddenly surface.  It is amazing (and frightening) to discover how much is disappearing through financial leaks we don’t even know are there.

Some examples:

Where do you bank? How much are you paying just to have your account? Are you charged extra if you actually go into the bank and make deposits or withdrawals with a teller?  We had one student who had never realized she was spending $30 per month in “Bank Charges.” Explore what options exist for free checking, free savings etc: then shift away from whoever you are currently banking with that is over charging you for this stuff.

What credit card do you use? Another student in one of our financial seminars had a “great deal” with American Express. She had responded to a great sounding card offer – designed to help “build success in a small business.” She was getting all kinds of special stuff… and was paying around $350 per year for it. Once she looked into the services that were actually important to her, it turned out that there was a free option that provided everything she needed.  She had been paying that extra money every year for nothing.

Do you carry credit card “insurance?” We have all been guilty of this one. You know, the tele-marketer who signs us up for a free 30-day trial of some service, offering a free credit report or something similar. All we have to do is call and cancel if we don’t want to continue… and it seems such an easy thing to do at the time… and yet somehow we never do! Then three years later we find out we have been spending $40 per month for something we never used or cared about… you get the picture.

The point is that, with just a little bit of effort, all of us can probably find an extra $25-$100 or even more – just by taking the time to really figure our where our money is going.  On the surface, it may not seem like a lot – but when you’re committed to creating success in your small business, this is money that can start going to paying down debt, building investment accounts and actually creating a prosperous future.  Visit http://www.abundanceboundsystem.com for more money saving ideas and this month, make a commitment to find and plug your money leaks.

Putting it off will just make it more expensive.

It goes without saying that a lot of people are in the midst of financial struggle. The stock market is running at a 12 year low, unemployment is close to 8%, and many are predicting the recession to run at least into 2010. This means less income, greater levels of debt, and a tightening of belts across all levels of careers, from bank executives to McDonald’s employees.

For us, as entrepreneurs, it can mean all those things, except that we have the additional need to continue growing towards success as small business owners, and finding the money it takes to do that. Sometimes, that can feel overwhelming. We go through periods where we make good money, and periods where there isn’t enough. Often the down times are subsidized with credit cards, which then increase our expenses when we are making money again, and only add to the financial pressure we feel.

So what are we to do?

It is critical to your success as a small business owner that you not allow your financial challenges to knock you out of the game. This is not intended to suggest that you ignore the very real issues you may be facing in terms of your money.  Instead, consider these three habits that will help you work through financial obstacles.

Don’t do it alone.

Many of us seem almost hardwired to try to handle our problems on our own.  This way of being is intensified when it comes to financial difficulties.  Society suggests it isn’t appropriate to talk about money and it’s normal to fear you’ll be judged if you “come clean” about a financial problem.  Still, one of the best ways to work towards a solution is to get perspectives and ideas from other people.  Build a team.  It may consist of friends, family, professionals or even fellow students in a financial seminar – but it’s essential that they be individuals you trust, who support you and who want you to have success in your small business. Seek communities of financially motivated individuals and you’ll be able to help each other work through hurdles, while continuing to challenge each other to achieve the goals you set for yourselves.  It is almost impossible to grow financially and build success as a small business in a vacuum. The phrase “self made millionaire” is hugely misleading, because no one reaches high levels of achievement in any arena, without first surrounding themselves with the energy and strength that comes in numbers.

Take action

One of the terrible things about financial anxiety is its ability to rob a person of their will to take action – stalling your growth towards success as a small business. Someone is worried about a problem, so they ignore it and do nothing about it, which makes them more worried, which further paralyzes them, and so on. The only way to break this cycle is to take a deep breath, screw up your determination, and go to work! Make a list of everything you can think of – small and big – that could help improve the situation.  (Again, your team can help with this.)  Pick something on the list – start with something easy – and do it.  Then pick something else, and do that.  Action breeds more action, which leads first to small successes, and then grows into significant accomplishment.  But you must get started.  Quickly. Now! The longer you put it off, the more daunting it will seem.  Once you get that first thing done, you will feel good about yourself for having made a positive step, and can then use that energy to take another… and another… and another, until you have smashed the old negative cycle, and have established a cycle of forward moving, positive action in its place.

Find the Lesson

We’ve all been told that we can learn from our mistakes.  Still, when we’re in the thick of it, finding the lesson we’re meant to take from the struggle is far from easy.  But there is an enormous benefit to taking a few steps back and identifying the choices that contributed to the problem.  When it comes to financial difficulty, did the issue stem from an unexpected crisis such as illness; or is a pattern emerging such as spending more than you are earning, or disorganization leading to late bill payment and overdrawn accounts?  We have to truly recognize that there is a problem as well as the role we played in its creation – in order to be able to do anything about it.

It’s probably not realistic to believe the day will come when all of your financial troubles will completely cease to exist.  However, practicing these three habits will certainly make them less daunting and long lasting.  Joining our entrepreneur community at http://www.AbundanceBoundSystem.com can help you to overcome each challenge. The strength and confidence you gain will have lasting effects in every area of your life, and will certainly increase your success as a small business owner.

How many of you read the title of this blog post and said “Oh no!  Not that again!”?

If you have ever attended any kind of financial seminar or read any books on finances, you have been told that you should consistently be putting a set amount of your income into savings.  We all know that we are supposed to be putting away money every single month.  Still, the reality is that an extremely small percentage of us actually do it.

So let’s just be extremely clear – no more beating around the bush . . . If you are not willing to make the commitment to automatically pay yourself first – every, single month without exception – you will NEVER build any kind of financial stability, let alone wealth.

Take a moment and think about all of the people that you pay automatically each month.  I understand that as an entrepreneur you may now pay your taxes quarterly or even yearly. But I’m sure you remember having a job where your taxes were automatically removed from your paycheck. Many of us have also set up a variety of our household bills to be paid automatically out of our checking accounts each month.  Why do you think the IRS arranges to have your taxes taken out of your earnings before you even see the money?  The answer is simply that they recognize this is the only way to ENSURE that they receive what they are owed.   You set up your bills to be paid automatically also to ensure that the respective companies receive what they are owed.  This eliminates the possibility that you will forget or get too busy to make the necessary payment.   We need to change our psychology that has us putting the government and the phone company and our cable provider ahead of ourselves, our financial security and our long term success as small business owners.

I am sure that every person reading this article has thought to themselves, “I’ll start putting some money away as soon as I start earning more.”  We as entrepreneurs are especially guilty of this mindset.  I also repeatedly hear from students and coaching clients that, because their earnings tend to vary, and because they haven’t yet reach their desired level of success in their small business they can’t figure out how much they can put away each month.  It is time to realize that these are just excuses, and as long as we continue to make excuses we will never change our financial picture.

The first step is to open what we call your Wealth Account.  The purpose of this account is to build up funds that will ultimately be used to purchase assets.  Assets are not stuff – bigger homes, nicer cars or fancy stereo systems – assets are things that you own that increase in value and/or create passive income: investment properties, businesses, stocks, bonds, etc.  You must also recognize that your Wealth Account is not an “emergency fund”.  You are not taking money from this account for any reason other than to purchase an asset that will make you more money, adding to your financial resources and ability to build success in your small business.

Once your account has been opened, decide how much you are going to put in it each month and immediately arrange to have that amount automatically transferred into your Wealth Account from your checking account.  How do you decide what amount?  I recommend that you look at your deposits for the last three months and determine what your average monthly earnings have been.  Once you have that amount, take 10% and make that the dollar figure you will deposit into your Wealth Account each month.  For instance, if your business is earning an average of $2,000 each month, $200 would be a reasonable monthly Wealth Account deposit.  If you are in a panic because that number feels too high, start with 5% or $100.  Just promise yourself that you will re-evaluate that figure after 3 to 6 months and see if you are comfortable increasing it.

Here is an absolute promise:  Once you have gotten this set up to happen automatically, you absolutely will not miss the money.  Over and over again clients tell us that they have no idea what they were doing with the one, two or three hundred dollars a month that they obviously used to be spending but that is now going straight into their Wealth Account.  As this account builds, you will notice yourself starting to gain interest in learning about possible investments for your money.  You will find that you always have an ear out listening for potential financial opportunities.  Your excitement and your commitment to building your wealth will grow as you start to realize that you will soon be able to afford that first investment property or purchase shares in a company or business.

We love to hear about the success of our small business readers!  Please visit us at http://www.abundanceboundsystem.com and let us know that you have opened your account and what amount you are committed to depositing each month.  Putting your promise out there to someone other than yourself will absolutely help you to stick to it.