Tip o’ the Morning to Ya – Budgeting Strategies for Success

Rich Habits Word of the Day

Fortuity – Risk, uncertainty.   Tom understood the fortuity of investing and limited his investment to 25% of his annual savings.

Rich Habits Fact of the Day

I loved the book The Frugal Millionaires: 70 millionaires anonymously share their ideas about money to help each other and you and thought I’d share a bit of it with you. The author starts the book by listing six simple concepts that most of the 70 frugal millionaires in the book have in common. The list:

1. Delayed gratification is easy for them.
2. Resourcefulness in getting what they want is a key to their success.
3. They make living way below their means painless.
4. They don’t like wasting anything (especially money.)
5. Their sense of “self-entitlement” is highly minimized.
6. Spending is OK with them depending on what they are buying.

Rich Habits Lesson of the Day

There are three ways to become financially successful in life:

  1. Live Below Your Means (80:20 Rule) or
  2. Expand Your Means or
  3. Both 1 & 2

Believe it or not, most of the wealthy people in my five year study did not make a lot of money. But they did save a lot of money. They were fortunate. They learned the 80:20 Rule from their parents early in life and it became a habit. The 80:20 Rule requires that you make a habit of saving 20% of your net pay and learning to live off the remaining 80%. You pay yourself first by automatically setting aside 20% of your net pay before you pay one bill. This forces you to live off of the 80% that’s left. Here are some budgeting, spending and savings guidelines to help you accumulate wealth:

  1. Don’t spend more than 25% of your monthly net pay on housing. It doesn’t matter if you own or rent. Stick to this 25% rule.
  2. Don’t spend more than 15% of your net monthly pay on food.
  3. Don’t spend more than 10% of your monthly net pay on entertainment. This includes bars, movies, restaurants etc.
  4. Don’t spend more than 5% of your monthly net pay on auto loans and never lease. Leasing is something I call a Poverty Habit. Buy your cars and take good care of them.
  5. Don’t spend more than 5% of your net annual pay on vacations.
  6. Never gamble. If you’re going to gamble on the lottery, it comes out of your entertainment budget.
  7. Stay away from accumulating credit card debt. If you are doing this it means you are living beyond your means and you need to cut back on something.
  8. Always invest your savings prudently. Never gamble your savings on get rich quick schemes. There’s no such thing. The power of compounding can grow your savings and make you wealthy. Saving just $250 a month over 40 years will produce $500,362 at a 5% return. Savings and investment are two completely different things. You should never lose money on your savings. Investments represent a portion of your savings you are putting at risk. When you invest you accept the risk that you could lose some or all of that investment.
  9. Max out your contributions to the company retirement plan. If the company matches your contributions, great. That’s free money. Always take free money when you can get it.
  10. Know what you spend every month. Create a monthly budget and track what you spend. I have a budget template I’d be happy to share with you readers.
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Thomas C. Corley About Thomas C. Corley

Tom Corley understands the difference between being rich and poor: at age nine, his family went from being multi-millionaires to broke in just one night, due to a catastrophic fire that destroyed his Dad's thriving business. For fourteen years they struggled with poverty. There were eleven in Tom's family, and they lived in constant fear of losing their home.

Driven by the desire to unlock the secrets to success and failure, Tom spent five years studying the daily activities of 233 rich people and 128 poor people. He discovered there was an immense difference between the habits of the rich and the poor. During his research he identified over 300 daily activities that separated the “haves” from the “have nots.” Tom decided to write a book to share what he learned. That book, Rich Habits: The Daily Success Habits of Wealthy Individuals (1st Edition), went on to become an Amazon Bestseller in the United States forty times over a three year period. To give you some perspective, in order to be a true Amazon Bestseller in the United States, where you actually receive a specific Bestseller designation from Amazon, you need to be in the top 100 of all books sold by Amazon in the United States in a given day. Rich Habits did that for nearly thirty straight days, rising as high as #7, eclipsing such Bestselling authors such as Stephen Covey, Robert Kiyosaki and J.K. Rowlings. Imagine that - an unknown, first-time, self-published author selling more books than J.K. Rowlings!

Tom now travels the world, sharing his Rich Habits and motivating audiences at industry conferences, corporate events, universities, multi-level marketing group events, and global sales organizations’ presentations and finance conferences. He has even spoken on the same stage with famous entrepreneurs and personal development experts, such as Sir Richard Branson, Robin Sharma, Dr. Daniel Amen, and many others.

Tom has shared his insights on various national and international network, cable, and Internet television programs such as CBS Evening News, NBC News, Yahoo Financially Fit, Money.com, India TV, News.com Australia, and a host of others. He has been interviewed on many prestigious nationally syndicated radio shows, including the Dave Ramsey Show, Marketplace Money, and WABC.

Tom has been featured in numerous print magazines—such as Money magazine, Inc. Magazine, SUCCESS Magazine, Entrepreneur magazine, Fast Company magazine, More magazine, Epoca Magazine (Brazil’s largest weekly) and Kiplinger’s Personal Finance magazine—and various online publications, including USA Today, CNN, MSN Money, SUCCESS.com, Inc.com, and the Huffington Post. Tom is a frequent contributor to Business Insider, Credit.com, Bankrate.com and a few other media outlets.

National publicity has garnered international media attention for Tom and his Rich Habits research spanning 23 countries. Broadcast media, online publications, and television throughout Asia, the South Pacific, Europe, the United Kingdom, and Central and South America have shared his powerful message.

In an effort to help parents, grandparents, teachers and adults become success mentors to the younger generation, Tom released his second book, Rich Kids: How to Raise Our Children to be Happy and Successful in Life in 2014. This book was the self-help category winner of the 2015 New York Book Festival and Runner-up in the prestigious 2015 Writer’s Digest Self-Published Book Awards Contest. In 2016 Tom released his third book, Change Your Habits, Change Your Life. This book provides the latest science on habit change as well as more of Tom's unique research on the specific habits that helped transform 177 ordinary individuals into self-made millionaires.

Besides being an author, Tom is also a CPA, CFP, and hold a master’s degree in taxation. As president of Cerefice and Company, CPAs, Tom heads one of the premier financial firms in New Jersey.
Phone Number: 732-382-3800 Ext. 103.
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