The "Financial Success System"
Anyone Can Use
to Achieve Financial Independence

Why should I follow a financial success system? Ask yourself what is the secret to personal wealth? There are countless programs, systems, formulas, and techniques being hyped by snake-oil salesmen the world over. Some work. Most don’t.

While people may choose different vehicles to create wealth (such as stocks, real estate, or royalties), the financial success system they follow is almost always the same. So unless you have an almost intuitive ability to pick stocks like Warren Buffet, you might want to follow these money rules. This is what I use and it works. I call this my financial success system.

• Pay Yourself First. Most people deposit their pay check into their checking account, then pay all their bills. If there’s anything left (and there typically isn’t), they then transfer some money to their investments. Or even worse (gasp!), they recklessly spend it! “Gee, look how much money we have left over. Let’s go to the Mall and spend it on crap we don’t really need!”

  NEVER, EVER blow your hard earned money on junk. If you’re honest with yourself, you’ll admit that you don’t even need the stuff. Deposit your paycheck, then PAY YOURSELF FIRST. Transfer a set amount of money every pay period to your investment account. Then never withdraw it.

  Let me clarify that. Until you achieve Financial Independence, never withdraw it for any reason other than to adjust or redeploy your investments.

  Understand that I’m not telling you to pay your bills late. That will ruin your credit and cause other serious problems! I’m simply telling you to pay yourself first and not last.

  Poor people spend their dollars first, and then invest what’s left. Wealthy people first invest their money, then pay their bills, then spend what’s left.

  This may initially go against your habits. It will require a change to your mindset. You may find that during some months, there isn’t enough money left to pay your bills! This will force you out of your comfort zone and will make your mind work to figure out a solution. It may require working some overtime to make up the difference. It may require re-budgeting for the month. Regardless, I’m confident you’ll figure it out.

  Start out small – maybe just a dollar a week. But continually increase the amount and stretch your comfort level. Set a monthly savings goal for a number that might initially seem just out of reach. Once you achieve it, take pride in your success. Then continually raise the bar. This is a key component to your financial success system.

• Spend Less Than You Earn. Such a simple yet critical statement! Regardless of your level of income, you’ll never become wealthy by spending all you earn – and maybe even more. Building wealth isn’t jut about earning money. It’s about KEEPING your money.

  The “Bathtub Theory of Economics” is a metaphor that states income flows into your life like water flows from a faucet into a bathtub. No matter how fast the water flows or how many faucets you turn on, unless you plug the drain, your tub will never fill!

  So practice some financial discipline and plug as many leaks as you can.

  Keep a journal and determine where all of your money is going. Once you realize definitively what you’re spending on (you’ll be surprised how much those grandé mocha java’s are sapping your savings), you can discuss where to cut the fat. To ensure a peaceful and productive outcome, you might want to set some guidelines before you start your conversation. This financial success system requires participation from both of you.

  (Coming Soon…An entire section devoted to getting yourself on a budget without sacrificing “living.”)

• Increase Your Financial Knowledge. Expand your horizons. Learn about money, the markets, and investing. Research different investment strategies and determine what works for you. I can assure you, as your financial literacy and abilities increase, so will your portfolio.
• Make Your Money Work Hard for You. You worked hard to earn your money. Don’t you think it should work just as hard earning more?

  Your money is doing you no good if it’s in a shoebox in the back of the closet. Nor will it be working very hard in a low-yielding savings account. Determine your investing comfort level. As your Financial Knowledge grows, your abilities to see and understand new or different investments will also grow. And you will find your comfort level expanding too.

• Make Sure Your Money is Working For You and NOT Against You. I never understood why people willingly pay fees to their bank just to have a savings or checking account. On top of this, they pay per-check charges, ATM fees, and high interest to credit cards, all which unnecessarily take money from them. AVOID IT.

  Make sure you aren’t paying more in interest than you have to. This applies to all debt you may have. Of course, if you follow the rest of these wealth strategies, you won’t have any other debt except, maybe your mortgage. But if you do, don’t pay more in rates and fees than you have to.

  Make sure your investments are working for you too. Avoid inflated expenses on your investment accounts, such as high IRA annual service fees and mutual fund expenses. Maximize the performance of your investment dollars by choosing your investments wisely. If you have some duds that are consistently underperforming, determine whether those dollars would perform better elsewhere.

• Create Savings and Investment Goals. Know where you want to go. Then decide how you’ll get there.

  Once you’ve established your financial baseline, decide on your financial goals. Your ultimate goal should be Financial Independence. Determine the gap between where you are and where you want to go.

  The gap may seem insurmountable at first. Break them down into smaller intervals and sub-goals. Breaking them down will make it easier to focus on your immediate (monthly) targets and what is necessary to achieve them. Knowing where you are going is important for your financial success system to work for you.

  (Coming Soon… An entire section devoted to Setting and Achieving Your Goals! You’ll learn the time-proven techniques of converting ambition into achievement. You’ll learn the importance of visualization, overcoming obstacles, and taking massive action towards your goals!)

Too many people assume that a Financial Success System is beyond their abilities. They believe that wealth strategies are too sophisticated, complicated, and difficult to implement. It’s easier to resign to the fact that personal wealth will forever be beyond their grasp.

If you believe that you will never be Financially Independent, then you’re right. On the other hand, if you have ambitions and believe it’s possible, then hard work, the right mindset, and perseverance, will get you there.

Remember, the biggest obstacle holding you back is YOU.

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