Want to change that?
You need to get FIT.
I don’t mean physically fit…
I mean financially fit.
To put it bluntly-
Stop being a financial couch potato!
The number one excuse I hear from guys all over the world is ‘Antonio, I want to dress sharp but I don’t have the money.’
Today, my friend Jeff Rose of Good Financial Cents is joining me to teach you how to SMASH that excuse forever.
Overwhelmed? Don’t know where to start?
Read on. These are Jeff’s top 3 habits of financially fit men.
Tip #1. Do A Financial Audit
To build wealth, you have to know a few things first. Can you answer all of these questions quickly and easily?
1.) Where is my money?
2.) Where is my money GOING?
3.) Do I have any debt?
4.) If so, how much?
5.) What is the INTEREST on that debt?
If you don’t know the answers to these questions, find them. Now. Check your bank balance daily, and every time you use an ATM. Look thoroughly at all your bills and loans, including the fine print, hidden fees and interest rates. Thanks to the internet, this is easier than ever nowadays. No excuses, gentlemen!
If you’re a young guy, you might be saddled with student loan debt, credit card debt, maybe a car loan you wish you hadn’t taken out. How do you tackle this debt and start getting rid of it? Think like an entrepreneur.
Every successful entrepreneur knows his bottom line. He knows how much money he’s making and what his expenses are. Do you, my friend? This is just as important in life as it is in business. You have to know where your money is and where it’s going.
If you want to buy new things or build a wardrobe full of stylish men’s clothing, you must first ask yourself whether you can afford it. You could be (and probably are!) paying thousands of dollars‘ worth of interest on your student or car loan debt without realizing it. That means if you prioritize spending over paying your debt, you’ll just end up with a lot more debt.
So do a financial audit before you make any more big purchases. Work out exactly how much you’ve got coming in and going out.
You can just do this on paper or a spreadsheet – but there are so many apps you can use to make it easier. I use Personal Capital. Being able to see all the numbers allows me to gamify it – I actually have fun looking at the numbers every day and watching them go up and down. It means I always know what’s going on when it comes to my money.
If you’re not into apps, just jotting your monthly finances down in a notebook works fine. It doesn’t have to be complicated – don’t overthink it. Just get started and do a financial audit.
Tip #2. Figure Out Where (And Where NOT!) To Spend
Make sure that you have a purpose for your spending. For young men, the biggest money killer is massive car loans. I get it, guys. You want to drive something nice, right? Like a Camaro, a Mustang, or a BMW… But do you really want to spend hundreds of dollars a month paying for it, on top of gas and insurance? Is that really being intentional with your spending ? Is there a purpose for that aside from your silly James Bond fantasies?
Of course you want a nice ride. We all do. But couldn’t you use some of that money more intelligently and invest in yourself instead? In your image? Your education? An actual investment fund? Have an intent. Ask yourself – “Where is the priority?” Spend (or save!) according to the answer.
Cars aren’t the only pitfall when you’re on a limited income. You shouldn’t overinvest in ANYTHING at the expense of everything else. If you’re not investing in your education, why are you spending thousands of dollars on clothing? If you spend hundreds of thousands of dollars on your education, why aren’t you willing to spend $500 on a decent men’s suit so that education doesn’t go to waste when you show up looking like a chump your next job interview? Get your priorities in order and make sure you’re spending the right amount on all of them.
Tip #3. Pay Yourself First
Congrats, gents. You’ve done a bit of number-crunching. You know your income and outgoings. You’ve sorted out your spending.
What’s your next step?
Take another pro tip from entrepreneurs and pay yourself first. In life, as in business, if you don’t want to go broke, you need to start saving money each month. Whether you put that money into a Roth IRA (if you’re from the US) or under the mattress – you need an emergency fund. Jeff calls it a freedom fund.
So many people have NO money saved for emergencies. Not smart, my friend! Invest in yourself by saving, even if it’s only a little bit. Don’t put yourself in that horrible position in which funds aren’t available when you actually need them.
Maybe you don’t like saving for emergencies because you don’t want to think about all the bad things that could happen. Then what about all the good things? You never know when a golden opportunity is going to present itself. You want to make sure you have money available so you can invest in it.
The easiest way to start saving is to set it up automatically. Have your bank deduct a fixed amount of money out of your checking account every month on a date of your choice. Consider a date right after payday so you don’t spend it all. Put it in a savings account – preferably one that you don’t have easy access to. If you can’t cash it out easily, you’ll have it there when you need it.
If you want to go really old-school, use the envelope method: keeping cash in separate envelopes for different expense categories. This is especially useful if your job pays you in cash or you don’t have easy access to a bank account.
To to sum up, the three habits of financially fit men are:
- Knowing exactly what you can afford to spend.
- Knowing your spending priorities.
- Saving before you spend ANYTHING.
Simple, right? In theory, yes. You’ve probably heard some of this before?
So where’s the difficulty?
Not taking action because you didn’t know how or why. Now you do. Don’t just sit on this information – do SOMETHING today, however small, towards getting financially fit.
Here’s what I recommend you do first – check out Jeff’s channel. You’ll want to subscribe to this guy, gentlemen. He knows his stuff. Don’t miss it if you’re interested in passive income and how to become rich.
Jeff wants to make you a wealthy man. As he says – ‘a Billionaire with a capital B.’ Click here to check out Good Financial Cents.