Jim Rohn once said something truly profound. He observed that people who don’t set goals, normally would have a few hundred dollars in their bank account. However those who do set goals, have a lot more.
There lies a powerful lesson. Learn to set goals. When you set goals, it’s obvious that one of them would be to accumulate riches and a big bank account.
So that’s step one. Set a financial target. How much do you want to have in your bank account? What’s the your target? Of course we all want millions of dollars in our bank but we have to start somewhere to build confidence. If you only have a few hundred dollars, why not aim to have your first $1,000 in there?
I remember when I first hit $1,000 in my bank account, I was over the moon. I felt like the richest person on the planet. It was my first ever savings goal and I made it. However years later, I’ve accumulated so much more and $1,000 is toy money in the bank, now I’m not saying all this to brag but to help inspire you that it is possible.
Once you’ve set your target, the next step is to manage your budget. I know this sounds so boring and uncool but resolve to recognise that a budget is the pathway towards the bank account you want.
That’s just the way life is. If you want the body you want, you have to control your calories, eat rabbit food and prepare meals that taste like cardboard. At the end of it all is a super lean, cut body that makes the women go cray.
I figured out that if you want to save money and accumulate a big bank account, you have to do what most people don’t want to do which is to sit down and work out a budget. This budget will contain your income, list of expenses and the most important thing, your cashflow.
Cashflow is when you take your income, minus your expenses and the number that remains. For example, let’s say that your take home pay is $3,000 per month. Your monthly expenses is a total of $2500. This means that your monthly cashflow is $500.
Now here’s the secret. You must protect that number at all costs and look for ways to increase your cashflow. By reducing your expenses, you automatically increase your cashflow. By looking for second income opportunities, you increase your cashflow.
As a result of increasing your cashflow, you have more money to save and you will get to your bank account target a lot faster.
I know it sounds super simple and it really is. I’ve pretty much explained it all in this article. This is where the problem begins. Most people would look for a more complicated solution. Buy an app, look for a savings plan program and more. But I’m letting you know that this is all you need to do to build your bank account.
Set a target, watch your cashflow, increase your cashflow and save it all.
I hope this helps you. If you liked this article, check out my book called “Ballin on a Budget” which teaches you how to build wealth and a financial fortress.
Stay Strong and Be Relentless.