By Alice Wood
Author of Wealth Watchers
Knowing where you stand with money is the key to financial happiness. Wealth Watchers is a 3-step program that can get you there. All you need to do is: 1. Evaluate 2. Determine 3. Track
Here’s how to put the 1-2-3 into play: Evaluate how much money is coming in (or not coming in) each month and figure out how much money has to go out each month. Feel free to estimate if your numbers change from month to month.
VIDEO: Alice Woods discusses how Wealth Watchers works
Determine how much is left after covering all of your monthly expenses. Subtract that number from your monthly income. Divide that figure by the number of days in the month to reach your daily spending goal. Why break it down to the day? Because blowing your budget by as little as $5 a day will leave you in debt by almost $2,000 by the end of the year. And any savings multiplied by 365 is a worthwhile goal.
Track all of your spending as you’re spending money. It forces a “think before you spend” moment.
Ready? Here are 10 more tips to help you get started.
1. Have a goal.
2. Share your goal.
3. Find an Accountability Partner.
4. Try to marry someone who won’t bankrupt you.
5. Take a look at every monthly expense and see if you can find a way to lower those bills.
6. Know down to the day how much money you have to spend.
7. Track your spending to find your black hole. Ben Franklin was right. Little leaks sink great ships.
8. Automatically transfer a certain amount into a savings account each month. Don’t worry if it’s only a small amount. The turtle always wins the race.
9. Learn to cook. Almost everyone spends too much money eating out.
10. Less is more… and it’s less expensive.
At the end of the day, we can all spend more money than we make—but we shouldn’t. Good luck!
Ten years ago, Alice Wood was living a normal life, balancing her career, family, and finances with con dence. Having grown up with a father who was a bank president from the pre-branch banking era and a mother who was influenced by the Great Depression, Alice learned prudence and financial responsibility at home. She knew instinctively how to handle money, until a brain injury sustained on a commercial airplane changed her life. After the injury, Alice encountered many new challenges; for the first time in her life she was overweight and in serious debt. Weight Watchers® allowed Alice to lose the weight and keep it off. Inspired by Weight Watchers'® daily discipline of journaling and the principle of group accountability, she decided to create a new and radically simple program to reclaim her financial stability. She called it Wealth Watchers. This simple program enabled her to meet her own financial goals and soon was helping thousands of others to do the same. Today, the Wealth Watchers program is an important part of the rapidly growing movement for financial literacy and empowerment sponsored by school, state, and federal government programs; corporations such as McDonald's and Visa; and several large financial institutions. Wealth Watchers is the story of Alice's journey from a life of having it all to a life of dealing with frustrating financial setbacks. In this book -- which presents the program and the principles in full for the first time -- you will find all the tools you need to organize your finances, complete your monthly budget, determine your disposable income, and understand which spending patterns are knocking you off-track. At the heart of the program is one simple calculation: your Daily Disposable Income (DDI), the money you can spend each day without going into debt. Amazingly, most people don't know their DDI. In this book Alice explains how it can help you make purchasing decisions, big and small, one day at a time, and build positive habits to last a lifetime. Using the Power of 365, you will learn how to analyze your expenses, stay out of debt, start saving again, and -- regardless of your age or income level -- thrive!