Personal Finance Wisdom You’ll hear no place else
I see many Entrepreneurs break this very important rule that continuously gets them in stressful situations. They don’t properly budget their personal finances, business income or monitor what goes out their accounts. As we all know I am a Real Estate Investor & with this business it’s many up & downs. One month you can make 20k the next 900 bucks, 1 month you could think you’re going to make 7k after they pay unexpected liens you’re getting 1100 bucks and of course the deals that cant be saved.
Therefore we are fully aware of the pitfalls of being a full time entrepreneur. Lets talk about some preventive measures that you can use for FREE www.mint.com to manage your personal finance. That could help you track how much is actually going out. And if more is going out than coming in then of course it would be wise to change some spending habits. I recommend you read some personal finance books lets talk about Dave Ramsey book “The total Money Make over also Tony Robbins is dropping a new book on finances this month. I have not read the Tony Robbins book yet I just picked it up at his UPW event last month in Dallas TX. However his stuff is normally good.
Now as Far as the Dave Ramsey stuff I get his point that he makes No debt can be a less stressful life. He also is not to happy about Real estate or creative real estate investing. At one point he became a millionaire by doing creative real estate. A new bank manager was hired at the bank that owned a bunch of the notes he took subject too. The new bank Manager called the loans due forcing Dave into Bankruptcy. And I could be wrong about the details of the story but he openly talks about it. Please keep in mind that the majority of Dave Ramsey listeners are 9-5’ers who play it safe. They are not entrepreneurship mind set people. So do not get discourage when DAVE recommends cash only real estate purchases. I subscribe to the rich dad aka Robert Kiyosaki Theory which is Good debt & bad debt. If the debt makes you money its good in my book, of course its more details about that as well. Business debt can be good if leveraged correctly but try to stay away from personal debt or keep it to a minimum. I do have personal debt a student loan I am working on paying off, a mortgage that I leveraged in my name before I learned about creative re and as far as credit cards I keep a 0 balance or very small balances that could be paid off at anytime.
In Conclusion, no matter who’s advice you take on personal finances be sure to always save your money. Its no Guarantee that someone will do business with you however there is a Guarantee that your bills cant stop wont stop. Find out how much it takes for you to live, take a few hundred for miscellaneous stuff and saved the rest. Rinse & repeat this every month that way when you have slow months, deals fall apart and of course my favorite your bills & Hard money payments are due you will be able to cover everything with out choosing one over the other. I personally have a Wholesaling bank account, Rehab account and personal account. I will soon have a rental account for my rental business. I hope this helps your personal finances out.