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Day: March 5, 2018

Saving Money Through Leveraged Action

A few years ago I attended a workshop at the International Coach Federation conference in Atlanta. Jack Canfield, co-author of the Chicken Soup for the Soul book series, was speaking. He had us fill out a worksheet that detailed what we did each hour in our business day, for each day of the week. Then he had us place a dollar value on each activity. For example, what would filing paperwork cost if we had to pay someone. The third step was to add up the hours that we sent on actual revenue generating tasks and how much they were worth.

It was an awful surprise when I applied the formula to calculate how much I lost each year by doing the work someone else could do for me. According to that figure, by trying to save money and do everything myself, I was LOSING $ 25,000 per year!

We can see through this example how NOT to use leveraged action. I thought I was saving money by doing the work myself, but in reality I was using time more profitably creating more income-generating ideas. Doing those tasks alsoave me an excuse to not take action on my new ideas. That was a wake-up call for me.

To gain momentum, you have to take action, and the more you tap into other resources as you do that, the faster your results will appear. Once you start, you begin to attract the people and resources that will propel you forward.

Waiting until everything is perfect keeps you from finding out your next step. You'll spend all of your time fixing things without knowing if they will ever work.

So start. How do you do that?

1. Run, do not walk when you have a new idea.

2. Take massive action. What appears to be pure coincidence but is really things happening at the same time in parallel begin to occur. You have to be okay with chaos.

3. Make your action simultaneous, not sequential. There are four "Step 1's". Do not work linearly. Begin all things, work each of them, and run them through to completion.

4. Do it before you are "ready". As one of my mentors says, "Ready, Fire, Aim." Start without knowing. It's easier to clean up a mess than to start.

5. Leverage every asset you have:

– Other people's experience: If you are not a bookkeeper and have to learn how to run an accounting program, the learning curve plus the time you spend entering data will add up. Tasks like this may not be cheaper in the present, but they will be cheaper in the long run.

– Expertise: Do what you love and let others do what they love. Doing more of what you do well will soon make you a master at it. By focusing on your area of ​​expertise, your knowledge becomes more valued and you become an expert.

– Connections: By joining associations, creating alliances, and participating in mastermind groups you …

You Think You Know How To Spend Money?

Do you think you really know how to shop? How do you calculate how much you pay the next time you take a loan? Do you have a system whereby you know how much is it that you can afford the next time you buy a car or a house?

You just bought a car. The installation is around $ 650 a month and you are determined that you can afford to pay the installation. You calculated the interest rate, term of loan and depreciation value and you are very sure that you can afford to maintain the car. After six months driving your car, you feel the pinch of paying your installation and you have a lot of bills, parking tickets and fines that you have not settle.

What do you do after this? You spend less, you travel less to save on your petrol and when all else fails, you decide to sell the car. However, you still have to carry on driving the car because you still have not breakeven your loan wit the finance company. For all you know, you are stuck with your car and financial problem start coming in like termites. Does this sound like you or at least sound like someone that you know?

I am not here to tell you not to buy a car or to nag you that made the wrong choice buying the car. I am not even here to tell you to avoid taking loans and to buy your car in full cash. However, what I am going to do is to teach you how to calculate whether you can afford or not.

You may think that I am talking nonsense and that I do not do a thorough research on this topic. Well, think again. It's because I see this problem too often that thought about it for three days in a row and try to think of a way to tell people on how to calculate the right way. A method a nine year old will know how to apply!

The method that I am going to share with you is simply what I call the 'Percentage Calculator TM'. Let me share with you how. Human beings are better at number 0 to 100. What a better way to calculate everything in percentage. If you say $ 2500 (100{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc}), savings is $ 500 (20{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} of income), expenditure including mortgage or rental is $ 1500 (60{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} of income), you are only left with 20{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} of your income that is $ 500.

With 20{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} of your income left, and knowing that you expenditure is kept at the minimum, do you want to buy a car still? You may disagree with me and tell me that with $ 500 you can still afford to pay your monthly installments. I totally agree with you but does this mean you would give up your shopping, holidays and entertainment? So, my advice is, the next time you buy something in installment or …