Please explain how people make millions of dollars and end up broke.
More money doesn’t solve a money problem. If you have $50,000 and spend $100,000 you are living check to Monday. That’s when you get paid on Friday and you’re broke on Monday! If you make $2,000,000 and you spend $4,000,000, you’re in the same boat.
What’s the best way to budget?
Live by the 10 – 10 – 30 – 50 rule. If you have $1,000, then:
10% – Tithes/giving = $100
10% – Saving/investing = $100
30% – Cash for incidentals = $300 (Groceries, gas, hair, entertainment etc.) – this is to help avoid a spending addiction!
50% – Bank account for bills = $500
if you do not need to use the entire 30% or 50%, apply the excess money to debt elimination then to investing.
What are the top three things anyone can do to build wealth?
Spend less money as shared earlier with your budget and outlined in my book, Living Check to Monday.
Get more money- build multiple streams of income – as discussed in The Symphony: A Guide to Creating and Balancing Multiple Streams of Income.
Why? Because one stream of income is hazardous to your wealth – everyone should be an entrepreneur.
Get your money back – the average American will not be able to retire with the same standard of living they had while working and taxes are a large percentage of one’s lifetime debt – become knowledgeable about tax laws so you can legally and ethically pay less taxes and keep more of your hard-earned money. Everyone needs to learn to get your money back! There are over 460 tax deductions for business owners (any kind of business owner including your sole proprietorship / home based business).
For example: Get paid to be a parent: Hire your kids to work in your home-based business (sole proprietorship) and get up to $12,000 in additional tax deductions for each child and neither you nor the child has to pay any taxes on that income. I have 3 children and 12 times 3 equals $36,000 in additional tax write-offs because i learned – like Trump! – how to get my money back too!!!!!!
Dr. Lynn Richardson is a financial guru, a best-selling author of financial self-help books and an ordained minister. Her new book, The Symphony: A guide to Creating and Balancing Multiple streams of Income, is available now. She shares her secrets on how to monetize all of your gifts to create a beautiful symphony of income streams.
Dr. Lynn’s Hip-Hop Sisters Foundation with business partner, MC Lyte, has presented more than one million dollars in scholarships for young women. She’s a proud Northwestern University alum and member of Delta Sigma Theta Sorority, inc. You can find her on twitter @lynnrichardson.
PHOTO: Lynn Richardson Courtesy
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