What's In Plain Sight

The power of wealth building lies in your own income. Whatever that income may be—big or small—you can make it work for you. Lately I’ve been reading a little from national talk show host, best-selling author, money management guru Dave Ramsey.

I love his common-sense approach, and want to share one of his tips that he repeats on nearly every one of his radio programs and throughout his publications: Spend every dollar on paper before the month begins.

If you’re not on that specific of a budget right now, get onto one. Be patient; it may take a few months before you’re totally comfortable with it. Here’s how Ramsey says to start:

“Every dollar of your money should fit in a category, even if you need to make up new ones. The basic categories include saving, housing, utilities, food, transportation, medical, personal, recreation and debt. Don’t forget to include saving for things that aren’t monthly, such as Christmas, birthdays, taxes and insurance premiums…. Prioritize your bills, savings and debts in order of importance, not urgency. Ask yourself, ‘If I only have enough money to pay one thing, what would that be?’ Move this way through the list.”

When you know exactly how much you need to cover your expenses, and when you plan before the month begins (giving every dollar a name), you can start making your money behave. And you might just be amazed at the stress that will just get up and leave your life, and the feeling of empowerment that replaces it.