I remember a line from an old rap song that sang “I got my mind on on my money and my money on my mind.”
A catchy phrase with a surprising amount of practical, real world value.
Early on in my freedom Journey I remember Robert Kiyosaki writing about how important it is to keep your books.
He said you either do it yourself or you hire someone to do it, but if you want to be wealthy, it must be done.
Books are just records of what’s happening in your financial life.
They give you a clear picture of where you’re at financially.
A few years ago when researching for one of our company’s products, The Financial Literacy Academy, I picked up a great tip from Mark Kohler who is a famous tax accountant, attorney/CPA, and best selling author.
He said you should set aside a small bit of time once a week to do your books.
Ever since then I’ve set aside 30 to 60 minutes each Saturday morning to focus on my “Books”.
It’s been one of the best habits I’ve developed because it keeps “My mind on my money and my money on my mind” in the best way possible.
Here are the major Benefits I’ve discovered from cultivating this habit.
Each week I know exactly where I’m at financially so I never have to guess where I’m at in relation to my freedom number.
Each week I review every single expense Item and often, I catch stuff I can eliminate that I wouldn’t have seen had I not been keeping my books. This allows me to be constantly plugging holes in my financial bucket.
Each week, I’m actively thinking about my money situation which keeps it in my mind, one of the most important things you can do to have financial success. Most people avoid the topic of money and because they have financial problems, they bury their head in the sand and choose not to face it. Definitely not a good strategy if you want your money situation to improve.
TAX SAVINGS < – Keeping your books allows you track any expense that is a business expense so you can deduct it and save money on taxes. If you are expecting your accountant to find you your deductions at the end of the year you are LOSING MONEY. The best way to ensure you’re getting your deductions is to track your expenses and categorize them through out the year.
Keeping good books makes tax time a breeze… (more on this in just a bit).