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Live Poor, Get Rich!

 

 

 

Stop Broke-i$m!: Developing Financially Confident Women

Live Poor

Get Rich!

Copyright 2017 Dr. April D. Murdaugh

Published by Dr. April Murdaugh at Shakespir

 

Shakespir Edition License Notes

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your enjoyment only, then please return to Shakespir.com or your favorite retailer and purchase your own copy. Thank you for respecting the hard work of this author.

Table of Contents

Acknowledgements

 

[+ Chapter One- The Millionaire Mindset +]

 

[+ Chapter Two- Rich People Are Savers +]

 

[+ Chapter Three- Rich People Are Frugal +]

 

[+ Chapter Four- Rich People Are Givers +]

 

[+ Chapter Five- Rich People Live On A Budget +]

 

Conclusion

 

About Dr. April D. Murdaugh

 

Other books by Dr. April D. Murdaugh

 

Connect with Dr. April D. Murdaugh

 

Acknowledgements

This book is dedicated to my children who allowed me to make many financial mistakes and did not deem me a bad mother-at least not publicly. Particularly, my eldest daughter Jania D. Savage who told me I could do this business and be successful. Thanks so much for believing in me!

It is also dedicated to my mother the late Clara Wali who made me believe that one day I would be a successful millionaire. To my Uncle Bruno Murdaugh, thank you for always calling to encourage me and make my day. Love you always.

I would like to thank my clients who give me the privilege and honor to assist them in meeting their financial goals. My friend Charlene Bolton, who kept me accountable during this process, and believed in me even when I messed up.

To My God, Jesus Christ the One who reminds me that I am more than a conqueror. His unfailing love, forgiveness, and grace continue to sustain me. I am honored that He revealed financial education as my passion and purpose; it is the reason I absolutely love what I do!

Introduction

Many dream of getting a lump sum of cash to pay off monthly expenses or of debt. A television show tracks lottery winners to determine if they maintained their millionaire status. Sadly, 80% of the lottery winners end up broke, 70% have to file bankruptcy, many lose family relationships-becoming financially worse than before winning.

There is a misnomer that wealthy people became rich because they won the lottery, received a financial inheritance, or gained proceeds from a successful business. According to Dr. Thomas Stanley, in the book The Millionaire Next Door, 80% of today’s millionaires are first generation millionaires. This means that they were the first in their families to earn a million dollars, achieving millionaire status.

Many also believe that millionaires are noticeable. Popular opinion is that millionaires are clad in the finest clothing, drive the most expensive vehicles, eat gobs of caviar, filet mignon, and take expensive vacations. Those ideas are not reflective of the true lifestyle or habits of first generation millionaires surveyed by Dr. Stanley. Truth is, financially successful people traditionally have similar habits, and those habits have made them not only wealthy, but created generational wealth.

If you are dreaming of one day becoming a millionaire, that is possible in this capitalistic entrepreneurial environment, you must learn how millionaires manage and keep their wealth.

Chapter One: The Millionaire Mindset

Millionaire status begins first in one’s mind. The millionaires interviewed in Dr. Stanley’s book, The Millionaire Women Next Door, pride themselves on being goal oriented. The women stated that they started their journey with a goal of becoming independently wealthy.

 

They wrote daily and weekly goals to ensure that their behavior would Having a millionaire mindset is important for one to begin the journey toward financial independence, millionaire status, or just freedom from paycheck to paycheck living.

 

Financially successful people have goals. They develop a plan and work the plan. They rarely sit back and allow things to happen, nor do they just watch them happen, they make things happen!

Establish Financial Goals

Goals must be clearly defined with a completion date. Since we are talking about financial matters, financially successful people have clear financial goals and so should you! For example, if you want to save $5,000 for emergencies in six months you should formulate your goal as follows:

Goal: Save $5000 in six months.

Tactic #1: Each month will transfer 833.33 to my savings account.

Tactic #2: I will not buy lunch or dinner out for six months.

 

Again, if you want to be truly wealthy, you must develop clearly defined goals. Once the goals are developed, how do you see success? I refer you back to the title of this EBook, Live Poor, Get Rich!

Wealthy people, truly rich people are not consumption rich. Consumption rich people focus on the attainment of things to reveal their financial status. Wealthy people focused on creating generational wealth, do not spend lots of money on external luxuries. They learn the habits necessary to create a legacy.

 

If you want to become rich, and create an inheritance that translates into a legacy, the next section is for you. Be sure to pay attention to the things rich people do to live, and then duplicate their behavior; trust me, it is not as difficult as you think.

What Does It Mean To Live Poor

This statement does not mean that wealthy people live in shelters, or pretend to beggars; that is not living poor that is behaving poor. According to Strong’s Concordance Bible Dictionary, poor, in some portions of scripture, is the same as being needy and having lack.

It further defines poor as scarcity living, quality of humility, and even pretending to be poor! In the book of Matthew, chapter 5: verse 3, scripture tells us that, “Blessed is the poor in spirit, for theirs is the kingdom of heaven.” In this verse, poor means a person that has a positive moral quality of humility realizing they have nothing to offer God, but are in need of

His free gifts.

Wealthy people who live poor realize they own nothing, and are humble stewards of God’s resources. In Luke, chapter 16: verse 2, Jesus requires his disciples to give an account of their stewardship. The Greek translation of stewardship means management, administration, and planning. A steward is a person responsible for carrying out and maintaining the resources entrusted to them.

Wealthy people, who keep their wealth, realize that they are financial managers; and as such, the things that purchased with money do not have dominion in their lives. This does not mean that they do not own nice homes or vehicles, or take nice vacations; it means that the money, cars, homes, and vacations do not control them or their ability to meet their financial goals. They do not have a poverty mentality.

Poverty Mentality

Before we go further, what is a poverty mentality? Scripture indicates that a poverty mentality is associated with lust of the flesh. Proverbs chapter 21: verse 17, says, “He who loves pleasure will be a poor man; He who loves wine and oil will not be rich.” The Hebrew translation of the word poor in this scripture means lack, and in need. If one cannot contain their flesh, they will be poor. This does not mean everyone experiencing poverty has issues with their flesh. However, it stands to reason as in the example of lottery winners who end up broke, money does not solve a poor mindset.

The wealthy live differently. They have a mindset and a system that has no choice but to produce wealth. Let us look at the specific ways they produce and maintain wealth. Rich people have a wealth mindset. Easy for them you say, they are rich! However, this wealth mindset was cultivated when they were poor or and financially needy, as in the first generation millionaire women. As mentioned earlier, 80% of millionaire women are first-generation millionaires. First generation millionaires had nothing to hang their hats on. Because of this, they had to develop a wealth mindset. A wealth mindset focuses on the end goal of financial freedom and not their current situation. They see themselves wealthy, and use this vision to drive their behavior. A person with a wealth mindset views obstacles and challenges as part of the process. They are not surprised and ready to quit when things do not go according to plan.

If you are not certain you have a wealth mindset, here are a couple of things you can do.

Read books about people who are where you want to be financially. Study them. Learn what they did to make the money, and try to find out what they do to keep it.

 

Listen to podcasts and audible books that offer you encouragement and practical techniques to building your eventual wealth.

 

Listen to positive music. Did you notice that people, who have a failed relationship experience, listen to sad love songs? That is depressing. Fill your ears with positive uplifting music that encourages you toward success. Instead of listening to baby-making music, hip-hop, or other tantalizing music, fill your ears with financial education and other types of positive programs. There are so many resources available, and most often they are not costly.

Spend time with positive people. No one is perfect, but it can be draining on your spirit to spend time with people who do not have the same ambition, focus, and perseverance as you. Guard your relationships. You do not have to be vocal about this. Use spiritual discernment to know whom you can spend time with, what you can share, and act accordingly.

 

Forgive yourself for not being where you should be or want to be financially. Do not live in the past. Mistakes happen to the best of us. Do not camp in that park. It is important to identify and understand the mistakes to avoid repeating them, but do not subject yourself to condemnation. I cannot begin to tell you the volumes of financial mistakes I have made, but I refuse to allow that to determine my financial future-and you should not either!

 

Chapter Two: Rich People Are Savers

David Bach in his book Automatic Millionaire introduces the concept of automatically saving money. He suggested that people create a retirement and savings plan by automatically transferring money from their bank account, or deducting it from their paycheck before receiving the money into their hands. Doing this creates an out-of-sight out-of-concept. If you see it, you are more apt to spend it. The automatic method takes the pressure off you, and thus you do not miss what you do not have.

Saving is extremely important from a Biblical perspective. In the book of Genesis chapter 41, a famine was going to spread throughout Egypt. Pharaoh appointed Joseph the city’s manager, to find a solution to the problem before the famine. Joseph with God’s wisdom, advised Pharaoh to take 5% of the fruit obtained from the harvest for seven years to ensure that enough was available when the famine came. Saving just 5% created a hedge against the famine. In other words, this routine savings program prevented the people from experiencing famine. In fact, they had more food than everyone else did! Saving is paramount.

In the book of Proverbs chapter 6: verse 6, David tells us to be like the ant who gathers their food in the summer in preparation for the winter; yet another way to explain the importance of saving.

If you experienced the financial and mortgage crisis of 2008, or lived through Black Monday, October 19, 1987, you understand that it is important to develop and implement a routine savings plan.

 

To get started, determine the ideal savings amount for your situation. You can begin with as little as 5% or $5, it does not matter- as long as you start with something. David Bach and other financial advisers suggests people save 20%; if that seems too high, make that the goal.

Start with as much as you can without making it unbearable. Check with your bank to establish automatic transfers from your checking to your savings account. You can also check to see if there is a way to debit the money from your paycheck before you receive it as with the out-of-sight out-of-mind method.

Rich people also figure out ways to increase their savings using the power of compound interest and the Rule of 72. Those methods surpass traditional savings accounts offered by banks.

 

Wealthy people also investigate easy to understand ways of making money on their savings using life insurance, index products, and annuities. In fact, Tony Robbins, in his book Master the Game: 7 Simple Steps To Financial Freedom, stated that index and annuity products are products loved by the wealthy because of the principal no loss guarantees and the ability to get upside market index performance without the downside market risk. Talk with a financial professional about these products. If you do not understand it, do not do it. The person helping you must make the process simple and easy to understand.

 

Chapter Three: Rich People Are Frugal

In Dr. Stanley’s Millionaire Women Next Door, the millionaire women surveyed were statistically more frugal than their male counterparts were. For example, he reports that the most money the women reported spending on a suit was $400, and $139 for shoes. Moreover, 81% of the women reported writing a list before going to the grocery store. When it comes to home ownership, more than half of millionaire women search for foreclosed properties as their first new home, are more likely to reupholster furniture before buying new, and will have their clothing altered or mended before buying new.

 

Frugality is a way of life for the rich woman. Suze Orman, a former financial professional turned educator, has a call-in television show whereby women call-in to determine if they are financially capable to make a desired purchase. For Suze to grant permission for this purchase, she asks financial questions such as net income, total assets, debt balances, and savings account balance, to ensure the person is not overspending. These questions are advisable even if the person is wealthy!

 

Living frugally takes your focus off things and opens the door to allow you to pursue your true purpose. Frugal living does not mean you have to buy second hand furniture and clothes, although at times you can find great deals, but true frugality is a good balance between needs and wants; it helps you to put your needs and wants in proper perspective. You may want a newer or bigger home, but you may not need one. In fact, if you made a few adjustments, you might find that your need for a newer or bigger home is unwarranted. Of course, this is relative, and must be evaluated on a case-by-case basis; the idea is that you pay attention to expenses, and avoid hyper-consumption.

 

The most important part of being frugal is keeping expenses low. I believe in purchasing quality over quantity. However, I do not believe I should pay full price for everything just because it boasts quality or is a name brand item. Many financially successful people purchase name brand/quality clothes, shoes, and furniture from consignment stores, flea markets, and even online. They probably could afford to buy the newest gadget or purse, but decided its better to keep expenses low and spend money on things that appreciate (increase in value).

Every three months or so, I review my expenses to determine if what I am paying is necessary. I ask myself questions like: am I really using it, could I get it cheaper, and could I live without it. The answers to those questions determine if I keep it or let it go. Just because it is affordable does not mean I should buy it, especially if I have not met my savings goal.

 

Chapter Four: Rich People Are Givers

Before Oprah became billionaire Oprah, she regularly gave. She stated that on a $50,000 salary she gave to those less fortunate and other noble causes. Wealthy women routinely give. Giving takes your eyes off you and refocuses it on those less fortunate.

In Dr. Stanley’s book the Millionaire Women Next Door, he stated that wealthy women routinely out-give wealthy men. For the sake of this book, we are talking about giving money. However, there are many other ways to give if you do not have money. You can give your time to volunteer, your talents to bless others, and your prayers. Yep, those are important as well. Whatever the method, giving requires you to take the focus off yourself.

 

Volunteering when you do not have the financial resources to give is an excellent act of selfless love. Not everyone has money. In fact, when the money and resources arrive to distribute to those in need, volunteers are necessary. Years ago Haiti received donations of water and clothes after a hurricane. The clothing and water donations filled a warehouse. Guess what happened, the items rotted because there were no volunteers available to distribute them to the people! Is not that sad? So please do not condemn yourself because you many not have the financial resources to give at this time. Begin where you are. Your time, your talents, and your prayers are excellent ways of giving back. Rich people volunteer their time as well; for they have the money that buys them the time to volunteer for the various social, and environmental causes important to them.

 

The Bible says everyone has a talent. God has given us all talents. Use the ones you have to give. Do not fall into self-condemnation because you are unable to give a specific amount of money. God challenged the Rich Young Ruler in the Bible to give, because he had money! God did not require him to give from an empty cup.

 

Tithing is the way Christians honor God with their finances. The tithe is one-tenth of everything monetarily you received from God returned as a form of thanksgiving. Of course, God is not with us in the flesh so we return this to Him through the church. Tithing has gotten a bad rap. Please understand whatever your stance on this, tithing existed before Jesus, and after his death. Tithing was done in both the Old and New Testament as a way to honor God-that’s it.

Recently, tithing has been used as a way to get God to do something, and that is not its purpose. It was and should be done out of love and thanksgiving to God. If you consider yourself to be a lover and follower of Jesus Christ, please do not let folks play head games with you about this- the tithe is a scriptural way to honor God, it is an act of obedience and faith. It is the way we thank and honor God for his blessings. Do understand that there are results to obedience and disobedience. The law of sowing and reaping works in both the natural and spiritual realm. When you give, it does come back. Just remember, giving to get is not the goal; giving to honor God, and be a blessing is the goal.

 

I return the tithe, and many other financially successful Christians I know return the tithe as well. Tithing should not be done out of compulsion or coercion. Remember you are returning the tithe- none of it belongs to you. The entire 100% belongs to God; were it not for Him, you could not work to earn the money! Seek God to determine which ministry organization should you send the tithe. I repeat, tithing to get a raise, new car or house should not be the purpose.

 

Offering is money given in addition to the tithe. As the Holy Spirit leads, give an offering. You can give to a charitable organization that helps a particular group, or to an individual; in either situation, offering is a way for you to be a blessing to others. There is no established percentage for offering, but if you check with successful organizations, they dedicate a portion of their revenue to various social and environmental causes-so should you!

Returning tithes and giving an offering is an issue of faith and obedience. If you are not a Christian, and are not sure that giving is important, I invite you to examine the financial habits of notable successful people such as Oprah, Bill Gates, and many others. Most have established charitable organizations for just that purpose: to give. As mentioned earlier, routine giving is an important part of the rich persons’ finances.

Chapter Five: Rich People Live On A Budget

A BUDGET! There is a false idea that the wealthy do not need a budget because they can buy what they want, when they want. This thinking is so far from reality. In fact, not having a budget is what caused some of the once rich people to become broke; just ask MC Hammer, Toni Braxton, or some of the lottery winners. Not living on a budget is a recipe for disaster.

Many say that living on a budget is difficult; and there is some truth to that line of thinking. Doing something you have never done before is challenging; but, it really does not have to be. A budget is an opportunity to gain control of your money.

 

Let me ask, would you allow your children or the family pet to just leave the house and not tell you where they are going? The same principle applies to budgeting. No matter the amount, you must tell it where to go. You must take control. God requires that we become proper stewards/managers of what He entrusted to us. Thus, we must do everything to develop and live on a budget. The problem is we are reactive instead of proactive with money. We let money control us instead of controlling it. Money controls our standard of living, our emotions, and our relationships. How did we allow this inanimate object to have so much control? God declared that we are to have dominion over the everything-including money! A budget is the most appropriate way to do this.

 

I will be honest in saying that at times I struggle with budgeting. I struggle because at times I do not want to be honest with myself about how much money I am actually spending. I do not want the reality of overspending to be revealed. In addition, it revealed that I had no idea how much it really cost to maintain my lifestyle. I may have a number in my head, but actual receipts show something quite different-scary different.

 

Developing an exact budget takes at least six months of focused effort. You cannot give up on this important task. If it does not work well the first week, month, or three months, you cannot give up trying!

 

The struggle I have with budgeting is my grocery bill. I know what I would like it to be, but sometimes my children, or my lust for junk food or not planning the weeks’ meals, takes control and I overspend or under-shop. If this happens, you must forgive yourself. You must draw a line in the sand and start over. A strategy would be to total the receipts and use that number to budget for the next week or two weeks-just do not give up!

 

Let’s think of it this way, if a corporation could not balance its budget, they eliminate supplies, overtime, and even people. You must employ that same method in your personal finances. If you are overspending in a category determine if you underestimated the costs of necessary items or are overspending on unnecessary items. Then do what the corporations do, have a budget meeting with the family to explain the upcoming financial changes. I am not suggesting you get rid of your family, but drastic situations call for drastic measures.

 

We cannot go about life trying to live like a reality television star. All successful corporations and households operate using a budget. As Dave Ramsey says, “A budget is telling your money where to go instead of wondering where it went.” Contrary to popular belief, a budget gives you complete control. The problem is we live so out of control! It is scary to look at things and see how chaotic we are operating. Trust me, I understand, but that must not be paralyzing.

Some years ago, one of my children kept receiving insufficient fund notices in the mail; lots of them! To determine the problem, I had them print their bank statement for the last 30 days, and highlight how much they spent on gas, personal expenses, and restaurants. They were shocked to discover that half of their income was going to eating out!

A budget can reveal that spending in a particular category must decrease, or that you are not spending as much as you thought on a particular category. If you can afford to eat out daily or shop lavishly, plan for it, using a budget. Money hides a multitude of financial mistakes, until it runs out. As mentioned earlier, Joseph of the Bible saved for the impending famine; he made it a part of the city’s budget.

 

Another false idea is that only the financially struggling need a budget. If you have difficulty paying your bills, a budget will reveal if there is an income or spending problem; and trust me, wealthy people are interested in learning that information too. This information tells the wealthy, and those unable to pay their bills, the budget categories that need adjusting. Budgets are universal planning tools for people of any financial status.

The bottom line is that you cannot get anywhere without a plan. A budget is a plan of how you will steward the resources entrusted to you. This does not mean you cannot eat at nice restaurants, or get your shoe-shopping fix on, it just means you have to plan for it.

 

Some people find budgets restricting. They feel like someone is telling them what to do; and they would be right! Nevertheless, here is the important point that they miss, you are telling you what to do! You are in complete control. Therefore, if you are a gadget person and you know that new technology is released each year, plan for it! If you like to get your shoe shopping game on every three to six months, plan for it! You decide how much will be spent; put it away in small increments until you have saved the desired amount, and then by all means, shop!

 

How does this work for the all or nothing person? This person has difficulty saving in small increments. They would rather shift expenses to buy what they want or need all at once. They think that saving in small increments takes too much time and just seems slow; trust me, I understand the struggle- I thought like this too, and sometimes still do!

Some Christians have the idea that God is going to provide their needs or desires at one time. The scripture in Malachi chapter 3: verse 10 that tells us that when we tithe God will open the windows of heaven and pour out a blessing that we will not have room enough to receive, does not necessarily apply here. I am not saying that He will not provide the amount needed at one time because I have had this happen multiple times. However, focusing on the “all at once” concept and not planning and “being like the ant” who builds his house one grain of sand at a time as motioned in Proverbs chapter 6: verse 6, is a lopsided way of viewing how God wants us to manage His money.

 

At the end of the day, a budget is necessary to be financially wealthy; and guess what, you can create a budget category for those shoes, and gadgets!

Conclusion

To leave an inheritance and create a financial legacy you must follow the habits of the wealthy. Remember wealth is not the accumulation of things. True wealth is the ability to be first a blessing to and provide for your family, be a giver, and saving and investing in a way that creates generational wealth. Rich people focus on generational wealth; poor people focus on today’s paycheck. Start today applying the principles to Live Poor, and Get Rich.

About the Author

Dr. April D. Murdaugh is a Wealth Coach, Financial Services Professional, and owner of The Empowerment Financial Group, a company that provides education to Stop Broke-i$m! and Develop Financially Confident Women. She provides individual coaching, workshops, and courses to assist women in changing their financial mindset/ behaviors, and create generational wealth.

 

She is the founder of The Economic Empowerment Center, Inc. a 501c3 Non-profit organization that provides financial education for high school and college students.

 

Dr. Murdaugh is also, a full-time college professor, and published author of a study on the financial literacy of undergraduate college students.

 

She is a single mom of four wonderful children. In her spare time, she enjoys running, reading, and listening to music.

 

If you want to Stop Broke-i$m! and live financially confident life contact her for a complimentary consultation at: [email protected].

 

 

 

Other books by this author

 

Please visit my blog to read other posts at: http://www.Broke-ism.com

 

 

The Financial Literacy and Financial Self-Efficacy of Undergraduate Minority versus Non-Minority Students. An Applied Dissertation Published May 2016

 

 

Stop Broke-i$m!: A Single Mother’s Journey Out of Financial Bondage

(Coming January 1, 2018!)

 

 

 

 

Connect with Dr. April D. Murdaugh

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Connect on LinkedIn: https://www.linkedin.com/in/aprilmurdaugh/

 

Visit my website: www.broke-ism.com and www.economicpowernow.com

 

 

 

 


Live Poor, Get Rich!

This book shares the habits of the wealthy using biblical principles in a practical manner. It allows readers to understand their mindset and habits to transform their financial lives from paycheck to paycheck living to wealth accumulation. Readers will learn the mindset of the wealthy, understand a poverty mentality, and learn how to transform their thinking to transform their financial lives. The principles shared are the results of surveying wealthy people and the author's experience in the financial services industry.

  • ISBN: 9781370753727
  • Author: Dr. April D Murdaugh
  • Published: 2017-09-25 01:50:12
  • Words: 5008
Live Poor, Get Rich! Live Poor, Get Rich!