I doubt there is a person alive who wouldn’t want to have a lot more money than debts or even what they need to just survive. Merely getting by and managing to cover the bills is no way to live … well, it’s probably better than NOT being able to pay the bills. However, most people have a goal to have more cash than bills, don’t you?
There is a mega ton of information written on this subject with a billion ways and systems to make this happen and to get rich. But by observing how many bankruptcies happen every day, you could guess than some people did not get the memo on how to have more cash than bills … i.e. profit.
There are two key mistakes that a large percentage of the population makes in dealing with money. Correcting just these two points has saved many a business and personal finances.
Many times we have seen a client take the income for the week, pay all the bills and take the left over amount home (if there is any). The practice stays the same size and after a number of years, the profit seems to be dwindling and does not keep up with inflation. What’s missing?
The way to grow a practice and increase profits is to take a percentage of your income every week or month and put it towards promotional actions, even before you start to pay the bills with the rest. Sometimes you may not even be able to pay all the bills at first, but then promotion becomes even MORE vital because you need to get your income level up so that it stops being a problem. When you are shaving back expenses due to the lack of income, the last place you want to cut back is the promotional actions. You have to grow yourself out of the hole.
Now let’s say you have an abundance of money come in the door – your stats soared this week and revenue was great. Many people would go “Yay, let’s go buy ________, or take a vacation to ____________,” and just blow that increase.
Instead, you need to use that money very wisely. After you promote, NOW you pay every bill you can and thus reduce your overhead. This will ultimately in the long run result in increased profits and give you a lot more take home to THEN buy ________ or take a vacation to __________.
The Net Result?
So there you go, if you follow the above two rules you will definitely be more stable and growing and get rich quicker. So go for it!