OK, for the first time through only look at the discretionary. Make a list of all the discretionary spending over the 30 days and then choose the ones you can truly do without. We will focus on these first.

Now the best way to change your habits is to focus your energies on a few things rather than a lot. By focusing you get the brain thinking creatively about ways you can adapt and compromise. This is a great facility the brain has.

Make sure you write down what it is you want! NOT what you don’t want!

BE CREATIVE

The come up with ways of making sure you don’t spend more than you are allowed.

I remember back to when I did it last, I wanted to stop spending $200 per night when I went out to nightclubs. (I was in Australia at the time) So I never took any cash out with me and then I restricted the amount I could take out of the Cash Machine to $40 at a time. It was so infuriating to have to make so many trips to the cash machine that I actually decreased my spending to around $80.

The other thing I did was to drink with my left hand rather than my right. It slowed my drinking rate down considerably. That was a trick I learned from a mate wh

I developed some very simple ways to do this. “Simple”, but not often easy. They required two critical things that you absolutely must develop if you are to be successful in life: discipline and re-education. Now this article is not about either of these qualities but unless you have discipline I can tell you, you will find the following task very hard indeed.

Firstly, don’t pay too much attention to this article’s title. It’s there to grab your attention. ?200 is a notional figure. Change it to whatever you want it to be.

This is a simple step-by-step process to find extra money within your existing income. Just follow the steps without actually trying to cut down on your spending, after you have completed this you can take a serious look at what you should really be spending your money on.

The origins of these activities are from the book The Richest Man in Babylon by George C. Clason. It is required reading for everyone from the youngest to the oldest of us. I have read this book at least 30 times over the past 15 years. It articulates many of the disciplines that I have developed and that I see in so many successful people. In particular I love the following quote from the book, it sums up exactly where most people are in their lives financially.

If you have not acquired more than a bare existence in the years since we were youths, it is because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them.

This is a potent reminder that we firstly must learn the laws and then put them into practice.

Follow the steps exactly and good luck. Ok - let’s get started:

Read the entire article through twice. For the next 30 days you only have 1 task which is Step 1. Once you have completed this move on and implement Step 2. Don’t try and jump ahead.

Step 1 - track your current expenditures for 30 days.

Remember to be honest with yourself. In order to fully complete this exercise you should track your expenditure over a 30-day period. This will open a can of worms in your thinking. You will begin to realise how much money you spend without ever thinking about it. It is generally this undisciplined spending that holds you back from being financially free.

Most people fail or stop this process after about 4 days. If you fail to track everything, stick too it as best as you can. I have tried and failed numerous times, in fact I can honestly only say that I succeeded once. It’s unfortunate but for those people who don’t track everything you will miss the very things that you need to be made aware of.

This process of writing down all your expenditure is more of a mental process than a financial one. You see most people have become so numb about spending that they don’t even realise they are doing it. This process will simply give you the awareness of where your money goes.

Track every expenditure for a full 30 days, as you do it think about each pound or dollar you spend. You will begin to realise that some of your expenses are essential others are not so essential. For now you don’t need to change your habits just observe the mental process you go through.

Step 2 - “pay yourself first”

This is the most basic of financial disciplines and one that I would argue will slingshot you to financial freedom quicker than any other single thing.

For this I want you to buy The Richest Man in Babylon. Read it and then begin to think about what it says. The book only takes about three hours to read but it will change profoundly the way your think about money.

I still to this day pay myself first and it is the single most profound reason for my financial situation today.

All you need to do for this step is calculate what you earn each month after tax and then work out 10% of this figure. This is what you will pay yourself first.

If your after tax income is ?1800 the you would put aside ?180. Pay yourself first ?180, before you pay anyone else including the credit cards, banks, or any other person or organisation.

As soon as you get paid your income simply take this ?180 and deposit it into an account that is separate from your normal account. Make it harder to get too, that will stop you giving into temptation or (perceived necessity). It will take some effort but you will make do on the remaining amounts.

The power of just this ?180 is in the way it focuses your mind away from the fact that you have so many debts and no savings. It changes the way you think from debt-ridden to small-time saver. Even the smallest of savings feels better than the biggest of debts. This positive affirmation sends a clear signal to your brain that you are now a saver and with savings you can open yourself up to investment opportunities. With investments you are thinking at a totally new level. It won’t be long and you can truly start to make a huge difference.

In my experience my people can do this for about 3 or 4 months but then they find some good reason why they should borrow it and pay it back, next payday. This never happens. Trust me you will not. This is why it is often good to place it somewhere where you need someone else to access the money. I used to have a 2 to sign with my mother and Mum knew the rules behind allowing me to withdraw money. I needed a clear business plan.

Step 3 - Mapping your cashflow

The third step is simply to group each category of expense into either -

• SURVIVAL - absolutely essential. Without it you could not survive, obviously
• REQUIRED - required is something you must have to function as a member of civilised society, and
• DISCRETIONARY - discretionary is those things that make your life happy and fulfilling but if you didn’t have them you would still survive.

OK, for the first time through only look at the discretionary. Make a list of all the discretionary spending over the 30 days and then choose the ones you can truly do without. We will focus on these first.

Now the best way to change your habits is to focus your energies on a few things rather than a lot. By focusing you get the brain thinking creatively about ways you can adapt and compromise. This is a great facility the brain has.

Make sure you write down what it is you want! NOT what you don’t want!

BE CREATIVE

The come up with ways of making sure you don’t spend more than you are allowed.

I remember back to when I did it last, I wanted to stop spending $200 per night when I went out to nightclubs. (I was in Australia at the time) So I never took any cash out with me and then I restricted the amount I could take out of the Cash Machine to $40 at a time. It was so infuriating to have to make so many trips to the cash machine that I actually decreased my spending to around $80.

The other thing I did was to drink with my left hand rather than my right. It slowed my drinking rate down considerably. That was a trick I learned from a mate who

If you have not acquired more than a bare existence in the years since we were youths, it is because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them.

This is a potent reminder that we firstly must learn the laws and then put them into practice.

Follow the steps exactly and good luck. Ok - let’s get started:

Read the entire article through twice. For the next 30 days you only have 1 task which is Step 1. Once you have completed this move on and implement Step 2. Don’t try and jump ahead.

Step 1 - track your current expenditures for 30 days.

Remember to be honest with yourself. In order to fully complete this exercise you should track your expenditure over a 30-day period. This will open a can of worms in your thinking. You will begin to realise how much money you spend without ever thinking about it. It is generally this undisciplined spending that holds you back from being financially free.

Most people fail or stop this process after about 4 days. If you fail to track everything, stick too it as best as you can. I have tried and failed numerous times, in fact I can honestly only say that I succeeded once. It’s unfortunate but for those people who don’t track everything you will miss the very things that you need to be made aware of.

This process of writing down all your expenditure is more of a mental process than a financial one. You see most people have become so numb about spending that they don’t even realise they are doing it. This process will simply give you the awareness of where your money goes.

Track every expenditure for a full 30 days, as you do it think about each pound or dollar you spend. You will begin to realise that some of your expenses are essential others are not so essential. For now you don’t need to change your habits just observe the mental process you go through.

Step 2 - “pay yourself first”

This is the most basic of financial disciplines and one that I would argue will slingshot you to financial freedom quicker than any other single thing.

For this I want you to buy The Richest Man in Babylon. Read it and then begin to think about what it says. The book only takes about three hours to read but it will change profoundly the way your think about money.

I still to this day pay myself first and it is the single most profound reason for my financial situation today.

All you need to do for this step is calculate what you earn each month after tax and then work out 10% of this figure. This is what you will pay yourself first.

If your after tax income is ?1800 the you would put aside ?180. Pay yourself first ?180, before you pay anyone else including the credit cards, banks, or any other person or organisation.

As soon as you get paid your income simply take this ?180 and deposit it into an account that is separate from your normal account. Make it harder to get too, that will stop you giving into temptation or (perceived necessity). It will take some effort but you will make do on the remaining amounts.

The power of just this ?180 is in the way it focuses your mind away from the fact that you have so many debts and no savings. It changes the way you think from debt-ridden to small-time saver. Even the smallest of savings feels better than the biggest of debts. This positive affirmation sends a clear signal to your brain that you are now a saver and with savings you can open yourself up to investment opportunities. With investments you are thinking at a totally new level. It won’t be long and you can truly start to make a huge difference.

In my experience my people can do this for about 3 or 4 months but then they find some good reason why they should borrow it and pay it back, next payday. This never happens. Trust me you will not. This is why it is often good to place it somewhere where you need someone else to access the money. I used to have a 2 to sign with my mother and Mum knew the rules behind allowing me to withdraw money. I needed a clear business plan.

Step 3 - Mapping your cashflow

The third step is simply to group each category of expense into either -

• SURVIVAL - absolutely essential. Without it you could not survive, obviously
• REQUIRED - required is something you must have to function as a member of civilised society, and
• DISCRETIONARY - discretionary is those things that make your life happy and fulfilling but if you didn’t have them you would still survive.

OK, for the first time through only look at the discretionary. Make a list of all the discretionary spending over the 30 days and then choose the ones you can truly do without. We will focus on these first.

Now the best way to change your habits is to focus your energies on a few things rather than a lot. By focusing you get the brain thinking creatively about ways you can adapt and compromise. This is a great facility the brain has.

Make sure you write down what it is you want! NOT what you don’t want!

BE CREATIVE

The come up with ways of making sure you don’t spend more than you are allowed.

I remember back to when I did it last, I wanted to stop spending $200 per night when I went out to nightclubs. (I was in Australia at the time) So I never took any cash out with me and then I restricted the amount I could take out of the Cash Machine to $40 at a time. It was so infuriating to have to make so many trips to the cash machine that I actually decreased my spending to around $80.

The other thing I did was to drink with my left hand rather than my right. It slowed my drinking rate down considerably. That was a trick I learned from a mate wh

Track every expenditure for a full 30 days, as you do it think about each pound or dollar you spend. You will begin to realise that some of your expenses are essential others are not so essential. For now you don’t need to change your habits just observe the mental process you go through.

Step 2 - “pay yourself first”

This is the most basic of financial disciplines and one that I would argue will slingshot you to financial freedom quicker than any other single thing.

For this I want you to buy The Richest Man in Babylon. Read it and then begin to think about what it says. The book only takes about three hours to read but it will change profoundly the way your think about money.

I still to this day pay myself first and it is the single most profound reason for my financial situation today.

All you need to do for this step is calculate what you earn each month after tax and then work out 10% of this figure. This is what you will pay yourself first.

If your after tax income is ?1800 the you would put aside ?180. Pay yourself first ?180, before you pay anyone else including the credit cards, banks, or any other person or organisation.

As soon as you get paid your income simply take this ?180 and deposit it into an account that is separate from your normal account. Make it harder to get too, that will stop you giving into temptation or (perceived necessity). It will take some effort but you will make do on the remaining amounts.

The power of just this ?180 is in the way it focuses your mind away from the fact that you have so many debts and no savings. It changes the way you think from debt-ridden to small-time saver. Even the smallest of savings feels better than the biggest of debts. This positive affirmation sends a clear signal to your brain that you are now a saver and with savings you can open yourself up to investment opportunities. With investments you are thinking at a totally new level. It won’t be long and you can truly start to make a huge difference.

In my experience my people can do this for about 3 or 4 months but then they find some good reason why they should borrow it and pay it back, next payday. This never happens. Trust me you will not. This is why it is often good to place it somewhere where you need someone else to access the money. I used to have a 2 to sign with my mother and Mum knew the rules behind allowing me to withdraw money. I needed a clear business plan.

Step 3 - Mapping your cashflow

The third step is simply to group each category of expense into either -

• SURVIVAL - absolutely essential. Without it you could not survive, obviously
• REQUIRED - required is something you must have to function as a member of civilised society, and
• DISCRETIONARY - discretionary is those things that make your life happy and fulfilling but if you didn’t have them you would still survive.

OK, for the first time through only look at the discretionary. Make a list of all the discretionary spending over the 30 days and then choose the ones you can truly do without. We will focus on these first.

Now the best way to change your habits is to focus your energies on a few things rather than a lot. By focusing you get the brain thinking creatively about ways you can adapt and compromise. This is a great facility the brain has.

Make sure you write down what it is you want! NOT what you don’t want!

BE CREATIVE

The come up with ways of making sure you don’t spend more than you are allowed.

I remember back to when I did it last, I wanted to stop spending $200 per night when I went out to nightclubs. (I was in Australia at the time) So I never took any cash out with me and then I restricted the amount I could take out of the Cash Machine to $40 at a time. It was so infuriating to have to make so many trips to the cash machine that I actually decreased my spending to around $80.

The other thing I did was to drink with my left hand rather than my right. It slowed my drinking rate down considerably. That was a trick I learned from a mate wh

The power of just this ?180 is in the way it focuses your mind away from the fact that you have so many debts and no savings. It changes the way you think from debt-ridden to small-time saver. Even the smallest of savings feels better than the biggest of debts. This positive affirmation sends a clear signal to your brain that you are now a saver and with savings you can open yourself up to investment opportunities. With investments you are thinking at a totally new level. It won’t be long and you can truly start to make a huge difference.

In my experience my people can do this for about 3 or 4 months but then they find some good reason why they should borrow it and pay it back, next payday. This never happens. Trust me you will not. This is why it is often good to place it somewhere where you need someone else to access the money. I used to have a 2 to sign with my mother and Mum knew the rules behind allowing me to withdraw money. I needed a clear business plan.

Step 3 - Mapping your cashflow

The third step is simply to group each category of expense into either -

• SURVIVAL - absolutely essential. Without it you could not survive, obviously
• REQUIRED - required is something you must have to function as a member of civilised society, and
• DISCRETIONARY - discretionary is those things that make your life happy and fulfilling but if you didn’t have them you would still survive.

OK, for the first time through only look at the discretionary. Make a list of all the discretionary spending over the 30 days and then choose the ones you can truly do without. We will focus on these first.

Now the best way to change your habits is to focus your energies on a few things rather than a lot. By focusing you get the brain thinking creatively about ways you can adapt and compromise. This is a great facility the brain has.

Make sure you write down what it is you want! NOT what you don’t want!

BE CREATIVE

The come up with ways of making sure you don’t spend more than you are allowed.

I remember back to when I did it last, I wanted to stop spending $200 per night when I went out to nightclubs. (I was in Australia at the time) So I never took any cash out with me and then I restricted the amount I could take out of the Cash Machine to $40 at a time. It was so infuriating to have to make so many trips to the cash machine that I actually decreased my spending to around $80.

The other thing I did was to drink with my left hand rather than my right. It slowed my drinking rate down considerably. That was a trick I learned from a mate wh

OK, for the first time through only look at the discretionary. Make a list of all the discretionary spending over the 30 days and then choose the ones you can truly do without. We will focus on these first.

Now the best way to change your habits is to focus your energies on a few things rather than a lot. By focusing you get the brain thinking creatively about ways you can adapt and compromise. This is a great facility the brain has.

Make sure you write down what it is you want! NOT what you don’t want!

BE CREATIVE

The come up with ways of making sure you don’t spend more than you are allowed.

I remember back to when I did it last, I wanted to stop spending $200 per night when I went out to nightclubs. (I was in Australia at the time) So I never took any cash out with me and then I restricted the amount I could take out of the Cash Machine to $40 at a time. It was so infuriating to have to make so many trips to the cash machine that I actually decreased my spending to around $80.

The other thing I did was to drink with my left hand rather than my right. It slowed my drinking rate down considerably. That was a trick I learned from a mate who used to run quit smoking seminars.

Once you choose your thing or things then come up with these little systems. A system is just a way of focusing your energies. Try them, they really work.

Try this for a few weeks and see if you can make some changes. It won’t be easy, but the results are worthwhile.