Make a plan and keep a record of your expenses to get rich.

How much money do you have, right now?

Do you know how much you earn every month after taxes? I mean do you really?

The same goes for your small business. Many small and micro business owners don't know and yet we say everything is under control.

Many businesses fail because of simple cash flow issues.... In simple terms, they spent more than they took in.

That can happen due to bad planning and due to bad record keeping.

Where is your money going?

What about your personal finances? Do you have a budget AKA spending plan?

Do you know where your money really goes every month? Do you buy things impulsively which you never need nor use.

These things don't add any value to your life. They do reduce your savings and investing potential.

Making a budget or spending plan

Budgeting is not difficult. It only requires a little effort and occasional modifications.

1. Budget for good not for evil... Budgeting gives you the control over your money.

Budgets are not for beating yourself up. They are not torture. They are to help you know what you're doing with your money so that you stay in control.

2. Income - Expenses

Just make a list of income sources and a list of expenses that are incurred.

If you forget an expense just add it later and revise the numbers. Subtract the expenses from the income and hope the number is positive. If you own a business don't forget to consider the taxes that you'll have to pay as an expense.

3. Keep your budget simple

You don't have to count every little expense. You don't need to make an entry for gummy bears, and another for Jolly Ranchers. An entry for candy or better yet Junk food is fine. Better yet include junk food in your entertainment expense category.

4. Give your self an allowance

Put your money for food in one pile or envelope and the money for entertainment in the other. When your budget for this item runs out you can't spend any more in that area until the next month.

5. Add an expense category for investments

The goal of budgeting isn't to break even at the end of the month. The goal is to be better off than the previous month.

So add the expense of your investments to the expenses. If you are struggling to survive start with 5%. If you are making a good salary then start at 15% or 10% if you are in your lower 20s. The more money you save on a regular basis, the richer you become. Being rich isn't how much money you make. Being rich is how much money you keep (and earn interest & more money).

Why should I do all this? I don't want to get rich! Money isn't important to me!

You'll need that money later for emergencies, the new baby or grandchild, your family's inheritence or for you to enjoy when you are older. If you invest enough, you'll be able to retire or retire early.

You never know when there will be an emergency. Could you pay the costs of surgery? Ok, You have comprehensive health insurance... what about your dog? If you had savings you could pay for his operation.

You could give your income from investments to charity or start a grant to disperse that money after you die. You could fund research for Malaria, AIDS, and Cancer. If you spend all of your money every month you won't be able to any of that.