While George Clason had only seven remedies for a lean purse that were taught by his central character Arkad; I would like to add an eighth. In lesson seven, I discussed the onset of the Information Age that has given us an economy based on information computerization and the internet. 1
A computer is an essential tool
The computer can provide us with how we can and track and monitor our income and expenses.
You must know where your money goes
So, why should I track my expenses? You must know where your money goes and how you spend it. It takes discipline and hard work, but if you don’t, you won’t know what habits you need to change to make your money work for you. Even your small daily expenses, cash and debit cards, can blow your budget.
Spend less than you make
To successfully grow your wealth and even becoming a millionaire, you must be aware of the money you make and spend. “True wealth is built as you spend less than you make, and to do that, you need to know what you are spending. If you want to build wealth, then you need to stop wasting money.”2
Create spending plans with PC software
Numerous online budgeting software programs are available to help you set up and stick to a spending plan. Many software programs are available at little or no cost to the individual, with most banks providing their customers with online banking options for paying bills and monitoring expenses.
A budget is essential to taking control of your finances
There are even free Excel spreadsheet templates that you can download to your computer, or you may want to use a notebook or an envelope budgeting system to manage your day-to-day expenses. Here is the point, A budget is an essential step in taking control of your financial future.
A review of the eight remedies for a lean purse
It is time to quickly review what we have discovered from Clason’s teachings about the best remedies for a lean purse.
Lesson 1- Pay yourself first. Take the first 10% of your earnings and place the money in a savings account.
Lesson 2- Live below your means. Learn to live on the 90%.
Lesson 3- Make your money work for you. Set up emergency savings to cover the unexpected expenses that will come your way.
Lesson 4- Protect your wealth from loss. Invest in only things you know and avoid “get rich quick” schemes.
Lesson 5- Be a successful homeowner.
Lesson 6- Develop a retirement plan to ensure your future income. Get to know and understand the eight wonders of the world, compounding interest.
Lesson 7- Do all that you can to be healthy, improve job skills, to become wiser and smarter to increase your ability to earn a higher income.
Lesson 8- Track your wealth and stop wasting money.
So why are you waiting?
My final thought can be summed up by something Arkad said at the end of the chapter. He said, “Go thou forth and practice these truths that thou mayest prosper and grow wealthy, as is thy right.”
Now, “Just Do It.”
Larry Marvin, LifeCrafter Money $ense