Gaining a level of wealth

I came across this video on Youtube, and decided to watch it to compare it to what I am already doing to see if I am on the right track.

In it, Dave Ramsey gives 5 pieces of advice in order to create wealth.

1. Make a budget

I got that one mastered. Of course, the hard part is forcing yourself to live by it. But, 90% of the time, I do a good job of that.
There is no accounting for emergencies. Crap happens. That is why you should put in your budget a plan just for just in case.

2. Get out of Debt

Dave demonstrated cutting up the credit cards. But, a level of credit CAN be a good thing (like when you are buying a home and need to have a good credit score -- yeah, been there). But, the trick is, have more money in your bank account than you owe on your credit card.

Some people don't have enough self-control to accomplish this. Some people just get into a crisis and the credit cushions them. But, if at all possible, learn self control and stay out of trouble.

I'd like to say I've mastered that, but all I've mastered, really, at this point is not going over my credit limit. My recent bout of unemployment and pending medical bills put me behind in this area, but it is my goal to solve this problem.

3. Foster High Quality Relationships (you become LIKE the people you hang out with)

I stopped hanging out with people who have no self-control when it comes to spending money. If it costs me money to hang out with them, I don't. And, if I have to look flashy in order for someone to like me, they aren't worth it. I am ME. And, I have limitations. Keep proper boundaries, and only hang out with people who respect AND encourage them.

4. Save and Invest

I have a savings account. At this point, I am rebuilding it, and don't have much in it. But, I have committed to add SOMETHING to it, even if it is only $5.00 each month.

I also have an investment account. I try to put just as much in my investment account as I do my saving account. I also invest "free money" (money from tips, gifts, money I win, money I got that didn't cost me anything to get). I figure if God gave it to me, I need to grow it.

5. Be generous. God loves a cheerful giver.

God gives you an abundance so you will share it with those in need. So, if you have MORE THAN YOU NEED, why hoard it? Give it to someone who can use it. This isn't just about money. This is about food, clothes, shelter, and anything else God has been gracious enough to provide you with. The more you give, the more you are blessed. This is a lesson I have learned over and over again.

I am not rich. I do have the potential to become wealthy. But, I have to consciously work on it.

One of the smartest things I ever did when I was making more than enough money, I paid off all my debts and put the extra money in savings. I arranged all my bills so that if I ever got into the position that I HAD to live on minimum wage, I could make it.

I am SO glad I did that!

My goal is to be able to make it on whatever social security I will get when I have to retire. When I get my house paid off, that will help.

In the meanwhile, I am investing some of my extra monies into mutual funds and my savings account.

My tip money and any "won" money I get gets invested into the stock market. I figure if I am going to gamble, I'm going to do it wisely.

It saved my butt during my last period of unemployment.

My Avon money gets re-invested into my Avon business and my savings account.

Check out the video!