‘We Should All Be Millionaires’ author: How to create a million-dollar system

Rachel Rodgers.
Rachel Rodgers

Our experts answer readers’ investment questions and write unbiased product reviews (here’s how we assess investment products). Non-client paid promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

  • Self-made millionaire Rachel Rodgers created a five-step “Million Dollar System” to help people build wealth.
  • It starts with knowing your money: track your net worth and credit score, and review your finances daily.
  • Then, develop future financial goals to set you up for good money management.

Rachel Rodgers is a self-made millionaire — and she has a system to help you become one, too.

In his book, “We Should All Be Millionaires,” Rodgers discusses the misconceptions about money and money management that prevent us from realizing financial freedom. He says it’s important to slam the shame wall and remove the fear when it comes to taking control of your money.

Here’s how his “million-dollar system” works, in five steps:

1. Track your net worth

It may be a misleading number at first, but knowing your net worth (total financial assets minus total financial liabilities) and tracking it often is essential if you want to build wealth.

Even if you don’t have much to begin with, constantly checking it and understanding the basis for your net worth — especially your liabilities — will influence how you make your financial decisions. Your net worth is beyond your budget, and by tracking it, you’ll start to see how your decisions affect your bottom line.

2. Know your credit score

Your credit score is important. A good credit score gives you more options for everything from credit cards and personal loans to renting an apartment to insurance. The better your credit, the more access to capital you have to start a business, buy a home, get a business loan, or apply for a credit card.

Take the first step today by going to freecreditreport.com to get the most recent copy of your credit report and sign up for a monthly credit monitoring account through Equifax or Experian. “Measurable is manageable,” Rodgers writes, so the more you monitor your credit and how your choices affect it, the more you’ll make better financial decisions.

3. Research incorporation and open a business bank account

I always hear this quote: “You rarely get rich working for others.”

While that doesn’t have to be true, it is the case that most millionaires are self-employed — including Rodgers.

The first step towards starting your own business is researching the creation of a business entity and what business would be right for you. A great way to do this is to start a side-hustle. I always say that everyone should have a side hustle for multiple streams of income. With business incorporation and income, you can open a free business checking account. There’s nothing like a new business bank account to motivate you to grow your business.

4. Get a bookkeeper and review your finances daily

Make a habit of checking your bank account balances and recent transactions every morning. Daily check-ins are essential to spot potential issues before they arise and see your spending and income in black and white. Recognizing these patterns will give you ideas on how to improve the way you manage your money.

Consider a budgeting app like Mint for personal finances, and bookkeeping software like QuickBooks for your small business. You may even want to hire a professional to help you keep track of your finances, especially if you’re running a small business.

5. Go to ‘Money Church’ every week

Don’t worry, you can attend in your pajamas.

“Money Church” is time carved out each week to sit with your finances. Review your accounts and latest financial statements. Write down and highlight any patterns you notice after looking at the numbers.

Also, take this time to shut down any limiting beliefs. Tell yourself that you’re good with money, you’re seeing progress toward your financial goals, all debt isn’t bad, and your credit score is improving. Then brainstorm new money-making ideas, more ways to save money and set future financial goals.

It is in everyone’s best interest to be good with money. The more money you have along with good money management skills, the more options and possibilities there are for you and your life.

#Millionaires #author #create #milliondollar #system

Leave a Comment