Biggest Money Mistakes Series

Many people have gone from broke to multi-millionaire by following some simple concepts that allow anyone to move from debt to wealth, on any income. One thing you will note about money mistakes; they deal more with attitudes, beliefs, and values, versus failing to review a restaurant receipt for errors.

People have the attitude that only substantial amounts of money are important and that small amounts of money are not. They will not be concerned about how to invest a few hundred dollars, but only think in terms of investing thousands of dollars. They think nothing of spending $5 on a muffin or a cup of coffee at Starbucks when they can make the same things at home for 50 cents. The fallacy is you can’t get substantial amounts of money to invest if you spend all the small amounts. You must have respect for the small amounts too. Over a 30-year time frame, $5 per day can create a $1,000,000 portfolio when invested appropriately.

Solution: Use a small notebook or spending register to track all cash spending. You cannot create a change in your behavior if you are unaware of it. Create awareness by tracking your cash spending. Track everything from 25 cents in the parking meter to a fancy dinner and tip. Watching where the quarters go will lead to the big bucks. Having a coach will help you keep track of what you are doing and that leads to the results you want in your life.