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Spending can no longer be an unconscious or thoughtless act fueled by the conditioning of your subconscious
self. Now that you’ve come to see how to have a healthy relationship to money and generate wealth, you need to be
thoughtful in your approach to your expenditures. Again, this doesn’t mean giving up everything you love. It does
mean becoming conscious of some of the over-and underallocations that may have slipped your attention. Then, in
the Forecast column, reallocate your money to get where you want to go. Now that you have an understanding of
Lifestyle Cycles versus Wealth Cycles, you can make a conscious choice to rescue the money from the depths of
poor spending and put it into a Wealth Account as well as toward eliminating debt. I always suggest that people
spend with intention, not with emotion. There can’t be changes to the plan just because of an “Oh, I like that”
reaction. You can have an emotional money pool, but you should limit the amount in that pool. When you truly
forecast, you’ll want all of your money to be allocated to a spending category. The Difference line item should be
zero. If each cent is purposefully spent, you eliminate emotional spending and recondition your mindset and your
relationship to money.
Forecasting is a strategic and ongoing process that changes as you and your finances grow. Without forecasting,
you’ll continue to overpay in taxes, spend emotionally, and squander money. This is a vital and important strategic
step in creating wealth. The Monthly Amount chart gives you a glimpse of the type of high-end tactics you’ll come
to understand as you advance in your wealth building. Right now, this probably seems foreign because you really
haven’t learned it yet, but plodding through it will start conditioning you for your future wealth.

Back to Jim’s Wealth Plan
I had more than a few ideas of how Jim could increase his Cash Machine to reach his goal of a $200,000-a-year
business. He was currently charging $60 an hour per client. To make $80,000 a year meant he was billing just under
30 hours of training each week.
I wasn’t convinced that Jim could raise his rates by too much in Topeka, Kansas. But if he could include
nutritional consulting in his training, he could probably adjust his rate to $75 an hour. He could also increase his
billable hours to 60 a week by hiring another trainer. With these new numbers, Jim’s business could gross $216,000
a year. By selling the nutritional products, Jim’s revenue would also increase, and his reconstructed spending
forecast would allow him to keep more of it. I also suggested that Jim invest in producing training videos and scout
Topeka for more corporate accounts.
In terms of Debt Management , Jim had two levels of debt to contend with: senior bank debt at 12 percent and
credit card debt at 18 percent interest. With his entities properly structured and his Cash Machine ramped up, Jim’s
company was creating and retaining more money. Jim eliminated his credit card debt through our Five-Step Debt
Elimination Plan. Then he went to work on paying off his business loan.
The Wealth Account step would be Jim’s key to achieving $100,000 in invested assets in one year. In Jim’s
forecasting, he needed to include a WAPP, for his personal Wealth Account, as well as a WAPP for holding
accounts in each of his three companies. And he needed to contribute about $2,100 a month into each of these four
accounts. This amplification of his Wealth Accounts would position Jim to build to $100,000 in direct asset
allocation within a year.
Jim had $5,000 in Assets , which consisted solely of the money in his SEP-IRA. With that he wanted to take the
$5,000 out of his SEP and put it into a True Self-Directed IRA. But he did not want to use that money for asset
allocation until he was ready to accelerate his Wealth Cycle. Jim decided to wait until he had $6,000 in the holding
account of at least one of his businesses and then he would use that money to invest in real estate.