The most important day you can spend this year is the day you spend reviewing the year.  Too often we forget to review our past experiences.  To be truly successful, we have to invest what we have learned into our future.  By making this wise investment we increase the speed that we travel to achieve greater success.

My friend, Jim Rohn, says you are either going to lead a life that is an example or a life that says warning.  The difference between those two diametrically opposed lives is the time you reflect on your actions, results and outcomes of your efforts.

It is impossible to lead a mistake free, error free life.  Successful people don’t make fewer mistakes, they merely learn more from the mistakes they make and learn quicker.  They take the error and transform it into a new action.

It’s impossible to create new actions and new activities without reviewing what has been done and your progress.  With the New Year beginning to take full swing, don’t take another step without looking back and retracing your steps that you have taken to get where you are standing right now!  The truth is, if ignorance paid huge dividends, most people would be enormously wealthy because they never took the time to review and evaluate.  I encourage you to review the area of your finances first.

One key area of your finances that must be reviewed at this time is analyzing your expenses.  I was on too many panels as an agent for years and now meet too many people that have a large gross income and very little net income.  The worst part is they don’t even know it.  Most agents have little idea what they spend to fund their business and fund their life.  Take time to review and analyze what your expenses are in your business and life.

Let me give you a process to increase your net profit:

1.      Analyze your expenses for the last year.

Take a look at each category on your profit and loss statement.  Take a look at the average you spend monthly in each category.  If you really want control, establish a monthly budget for each of the categories.  This will allow you to see where you might be prone to overspend in the future.  Establish the habit of reviewing budget verses actual expenses at least quarterly.

2.      Establish a goal of what you want to save annually.

Saving money is an acquired, or learned, skill. Anyone can learn the skill if they establish a system to work within.  One system would be to take your annual savings number and break it down to a monthly figure.  For most salespeople, I recommend taking this process one step further.  Calculate out what the monthly amount would be per commission check based on your average commission amount per month.  This will give you an amount per commission check that needs to be saved.  The real secret to financial wealth is to pay yourself first.  I heard that for a few years and never really knew what it meant.  What it really means is, pay your savings first before you pay all other bills.  If you have to forgo all your other bills and only pay your savings debt – do it.  Make your payment to savings the most important one monthly that you pay.

Reviewing your finances, expenses and activities can be the most important time you spend all year.  Take the time to invest your past for a grander future.