Personal and Restaurant Finances

The 5 Lessons A Millionaire Taught Me For Women

This book about  Life and Wealth For Women is about hope, hope for women, hope for families. This simple book takes a complex topic of personal finance and creates an easy to follow process for taking control of your income, spending, and investing. Why is this important? The restaurant industry has more women managers, employees and owners then ever before.

I cannot count the amount of times I would teach the old school envelope system to my employees. The problem is that cash sometimes goes to impulse buying and not the bills. Having great employees with less then solid financial plans is not uncommon. This Book Will be a great resource

Richard Paul  Evans states a “Man is not a financial plan” and women need to take be involved with the family finances

Women are the primary spenders in the economy. They control the purse strings, 80% of all consumer spending is controlled by women. Women are earning more money, then ever before are receiving more college degrees then men (which equates to higher salaries) and controlling more corporate expenditures then anytime in history.

This is also good advice for our restaurant marketing plans. If we are not marketing to women then who is our market?

Richard Evans states that many millionaires will tell you that making the first million is not easy unless you have a plan. Richard Evans is now one of my millionaire mentors through his book and I am grateful that he has shared with me the 5 simple steps of how he became a millionaire:

Step 1: Decide to Be Wealthy

Seems so simple yet most women don’t believe they are worthy because society has ingrained a negative attitude towards money. The first three steps to becoming wealthy are

* Stop with the limiting beliefs Everyone is worthy of wealth
* Take advantage of the Power of commitment
* Choose the path on how to be wealthy and the destination

These are the first steps in deciding to be wealthy and overcoming the social message that money is evil.

Step 2: Take Responsibility For Your Money

Know Where your money is coming from and exactly where it is going I prefer the old school “envelope system”

Women In the Restaurant Business

Know Your Role? Do not be in the dark about the family finances

Track your expenses, Everything, Keep strict accounts. You do not need a complex system like Quicken the software program, a simple monthly budgeting book from the office supply store will work. This is true for your restaurant accounting as well

What is your net worth? This is how you keep score. Know where you are now this is the beginning. By tracking your net worth is how you keep score. By increasing your net worth you are heading towards your millionaire status. If your net worth goes down you are heading in the wrong direction. When managing your restaurant finances this would be your restaurant balance sheet

Know What Your Money is Doing, The wealthiest of people manage their money. Most people say they do not have time to manage their money? Sound crazy? this is what happens when we work to much in our business not on our business. For more on this read The E-Myth Revisited CD : Why Most Small Businesses Don’t Work and What to do about it

Step 3 Keep a Portion of Everything You Earn

Author George Clayson “Richest Man in Babylon – The Success Secrets of the Ancients” target=”_blank”>The Richest Man in Babylon” Wrote that he found the road to wealth when he decided that a part of all he earned was his to keep.

“Start your nest egg, what is a nest egg? A real or artificial egg that is put in a hens nest to encourage it to continue laying after the others have been removed”.

The neatest idea he had was how to build your nest egg. Buy silver and suppress the urge to spend buy spend money on a tangible investment.

Avoid Bulimic Money practices? Save, save, save, only to splurge your savings on stuff.

Remember debt is a four letter word. The next steps are how to eliminate debt sounds difficult yet through this simple system you can target your debt and eliminate. Debt and taxes are the number one and twothiefs of wealth.

Begin buy recording your debt on a sheet of paper sounds simple

Contact everyone you owe money to and ask them to reduce your debt. Some will,  some wont but it is worth asking for.

Take all of your remaining debt and transfer it to the lowest possible interest rate, Debt is like a an anchor it can drag you down to the depths of despair.

Pay the same amount as you were prior to consolidating the debt every month. As your minimum monthly payment decreases, with your balance keep paying the same every month, this will speed up the process to getting it paid off

Step 4 Win in the Margins.

The Wealthy find additional ways to add to their nest. They win in the margins with extra income. Don’t have time to start a side business?

Richard Evans states that “The world s designed and set up to take your money. “

The millionaire mindset considers every expenditures. Billionaire J Paul Getty in his 1965 book “ How to Be Rich” target=”_blank”>How to Be Rich” He wrote the book not for us but for other business magnates

Increase your savings and start a business on the side, Richard Evans tells several stories of how people made millions by starting a kitchen table business. Carefully consider every expenditure, freedom is more important then monetary pleasure, spending does not equal happiness, and above all else protect your nest egg.

Learn these seven words. “Is that the best you can do?” these words will and can add thousands of dollars to your wealth building strategies.

Remember that compound interest is not only a wealth builder but it is a wealth stealer. If you are paying it you are giving up your wealth. If it is paying you then chances are you are building wealth.

The truth of plastic. Just say no! The best things in life are not things. Credit card debt and gratification are an oxymoron. You really cannot have one with the other. Americans spend up to 30% more money using credit then they would with cash. The last of the five mindsets is to protect your nest egg using the proper insurances, my dad calls it risk management?

Step 5 Give back

The last is what he calls life’s balance sheet, give back create financial Karma. We are supposed to pay to charities. It is the responsibility of us the citizens to give aid and comfort to help others, to take care of the less fortunate. It is the responsibility of the citizens of the United States of America to take care of the less fortunate. Not the responsibility of the government.

Giving back is the first law of personal financial management from the book “The Richest Man in Babylon. Utah is ranked first in the nation for charity donations as a percentage of income. Thank Goodness that is not a surprise.

I really enjoyed the 5 Lessons a Millionaire Taught Me For Women” About Life And Wealth. This is complex topic that is presented very well with additional forms and help from the website. Once you get your finacial house in order then lets make sure your restaurant accounting is in order

Stay tuned there is more on personal finance programs.

ciao!

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