Build Wealth – $1,000,000 – “Good Funds” (Part 5)

Nov 29

Image sourced by Ashraf Ali @ashrafali_786

Welcome Back!

Given the excellent feedback and praise we’ve received about the Building Wealth – $1,000,000 series, we’re writing more posts about building wealth of $1,000,000 and sharing still another way to create your own system to build wealth of $1,000,000.

Truth be told, these two financial concepts are two of the very best wealth-building strategies I have ever learned. They have Helped Me build a net worth that exceeds $1,000,000.

And You can too!

Let’s get to it!

Simply put, these two financial concepts are:

“Good Funds” and,
“NSF” – which stands for Not Sufficient Funds.

The overarching secret that really drives these financial terms is your wealth-building mindset.

Which leads to creating new habits around how you handle money.

I’ll reveal the rules guiding Good Funds and NSF in a moment.

These two gems CAN change how you handle money, change your spending habits, change how you organize your life and open the doorway to give yourself the best chance possible to build wealth – $1,000,000; or More!

Law Insider® defines Good Funds as money in U.S. dollars that is currently available and usable, right now, without any strings.

You can use Good Funds to pay bills and expenses, and build wealth. . .

NO strings attached!

No questions asked!

Examples of Good Funds include:

Cash – cash on the barrel head
Bank Check or Cashier’s Check, which is written by the bank, from the bank’s account
Certified Checks
United States Treasury checks; and,
Wire transfers and several other forms of funds.

The $1,000,000 Wealth-Building Mindset means you HAVE Money – Good Funds – IN HAND, In Your Bank Account BEFORE You Spend.

That means you Don’t rack up credit card debt to make purchases.

Limit your purchases to an amount you Can pay off In Full when the credit card statement comes due.

NSF – or Not Sufficient Funds

‘The Accounting Coach’ defines ‘Not Sufficient Funds’ or ‘NSF’ or insufficient funds as an account where there isn’t enough money in your checking account to pay the check.

The bank rejects your check. They return your check to the depositor because your checking account balance is less than the amount of the check. In other words, the check will bounce – a bounced check.

Again, the $1,000,000 Wealth-Building Mindset means you Have Enough Money – Good Funds – IN HAND, In Your Bank Account BEFORE You write the check.

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Here’s how you can put these two concepts to work for you and Save $1,000,000 or more:

Adopt this wealth-building mindset:

Don’t spend money unless you have Good Funds in your checking account to pay the bill in full.
Don’t write checks unless you have enough money in your checking account to cover the check. In other words, so the check won’t bounce.
If you don’t have Good Funds or it’s likely that you will bounce a check, reduce your spending immediately.
Realistically, don’t spend money outside of necessities – food, rent, mortgage, utilities, debt service, commuting to work, possibly urgent repairs and maintenance, etc.
Reduce your discretionary spending to the point where you can afford it – when you have Good Funds in the bank.
Invest your new-found cash wisely.
Don’t stop until your net worth reaches $1,000,000 or more.
In fact, while you’re at it, never stop!

The key to building wealth is to create your own wealth-building system that works for you; put it to work; be disciplined; and follow it month in, month out, religiously. And of course. . .

Adopt the wealth-building mindset. And. . .

Think twice before you spend money when you don’t have Good Funds or you have insufficient funds or Not Sufficient Funds.

This seemingly simple yet powerful mindset will help you conserve cash, create cash flow and lay the groundwork to build wealth!

This wealth-building mindset works for me.

It can work for you!

Take a test drive. And as always, let us know how it goes.

To Create More Free Cash, click here.

See you next week.

Arthur V.

Disclaimer: OH and Please Remember, we are Not financial advisors, financial planners, attorneys or accountants and are Not providing any specific financial, tax or legal advice here. Be sure to conduct your own due diligence and consult your own professional advisors to get sound professional advice that’s specific to your financial and personal circumstances, risk tolerance, time horizon and investment goals and objectives among other key factors!