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month.”
“First of all, from now on you’re going to know exactly how much you spend each month. And second of all,
you’ll never use a budget again,” I said. “This process is not about budgeting and cutting down your life. It’s about
creating more money to make that life a bigger and better game.”
I can’t think of a more limiting and unappealing concept than budgeting. A budget is like a diet: no one does it,
they don’t work, so let’s stop it. In the Wealth Cycle Process we do not think about what you can’t do, which is
what budgeting forces you to do, but instead challenge you to deliberately and purposefully plan how you will spend
your money. If you want to eat, drink, and be merry, that’s fine, but then you need to “learn to earn” more money
like millionaires do. “Moving forward, we’re going to throw out that budget and introduce you to a spending
forecast,” I said.

Question 3: What Assets Do You Have?

This usually crops up in the form of home equity, mutual funds, individual retirement accounts (IRAs), and savings.
The Leonard family’s home had appreciated quite a bit since they purchased it, and they had about $350,000 of
equity in the house. Additionally, they’d saved money for their boys’ education and also had some money in the
bank. I could already see the first step in the sequence of their building blocks and knew that to activate the Leonard
family’s Wealth Cycle, we’d start with the Assets. This would mean taking some of the equity in their home and the
money from their IRAs and mutual funds and investing that in more direct, less conventional, assets to create a
greater return on their investment. By engaging in direct and diversified asset allocation, we’d wake up these lazy
assets and easily replace Mary’s income of $25,000 a year.