“You have to do something if you are going to get something.” TD Jakes

Ecclesiastes 7:12 “For wisdom is a defense as money is a defense, But the excellence of knowledge is that wisdom gives life to those who have it.”

Ecclesiastes 10:19 “A feast is made for laughter, and wine makes merry; But money answers everything.”

  • Money is provision.
  • Money is protection.
  • Money must be tied to purpose.

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The first step to a life of wealth is the creation and development of assets.  The first few lessons were to introduce and explain the concept of assets.  To create something to OWN, we must assess what materials or resources are currently available to you.  We began with net worth to enable you to diagnosis the current state of your wealth.  Now it is time to roll up your sleeves and get to work. What resources do you have now?  Do you know?

A cash flow statement can help you evaluate your personal income and expenses and see if you are running ‘in the red or the black’ each month.  This will help you free up money to save or invest.  A wave first begins with a ripple.  In this lesson, let’s find the ripples.

cropped-ripple-full-size

Important terms from this lesson

1.       Cash Flow Budget   – An estimate of income and expenditure for a set period of time.

Action Step:       Create your monthly cash flow (budget) statement.

  1. Pull out your last three monthly bank and credit card statements.  (This will help you  pull the information to complete the cash flow statement)
  2. Go to http://www.kmsykescpa.com/calc-section.php?calc=bud09 and enter the information, then hit submit to generate your monthly or annual cash flow statement.
  3. Print out the completed statement, date and sign it.
  4. Find an area or category that you can exploit or cut-back.  This will be your first ripple.
  5. Challenge yourself and see if you can find at least three ripples to save $200 for the first month.

Ripple #1:____________________________________________________

Ripple #2:____________________________________________________

Ripple #3:____________________________________________________