This is not about weight loss, it is about a way of life that will lead to a brighter financial future.
Nearly 15 years of my life has been spend traveling the country as a business operations consultant helping successful businesses make more money, spend less and increase their productivity.
The philosophy that guided much of my approach is called Lean Management. While the concepts and principles of Lean Management came from a number of sources over centuries they were made famous by Toyota Motor Corporations use of them and introduced to the world in a book called The Machine That Changed the World written by James P. Womack, Daniel T. Jones and Daniel Roos.
If you were to research Lean Management you will find various interpretations but the core concepts will be the same, it’s about doing more with less. Lean is a series of simple concepts that can be very challenging to apply because lean is not a program that can be installed on your computer, it is not an automated process of money management, and it is not something that you can apply when you feel like and ignore when you don’t.
Never before have Lean Management techniques been applied at a personal level. I believe I am the first to publish how these thoughts and ideas can be used to your financial benefit. These are not just concepts however, I have applied these principles to my personal life over the last decade and benefited greatly in the process. Understand though that getting rich being lean is a way of life and requires a different perspective.
In the early years of helping millionaires make more money but coming home to mounting debt and a bleak financial future, it finally occurred to me one day that the same principles that are used in business can be used in ones life. After all in a way you are in the business of you.
Like a business your objective every year is to generate income and be left with a profit (savings) after paying all your expenses. But profit alone is not enough, any good business is looking to grow each year as well.
Like a business, if you are burdened with debt you are faced with only two options: earn more or spend less. Somehow you have to free up cash flow to enable the payment of debt. Once the burden has been eased or eliminated your money or profits can be reinvested in your business of you.
Like any successful business, long term growth and profitability does not happen by only looking at the short term. You must not take your eye off the ball today, you must also establish long-term goals and objectives.
Unlike a business you cannot sell your business of you. Everything you work for today is so that you have assets to retire on or give to your heirs or charitable preferences upon your dealth. Retirement and or accumulation of wealth is your primary long-term financial objective.
How does getting rich being lean help you achieve your long-term goals?
When properly applied the principles of getting rich being lean guide you on a path of accomplishing more with less. Financial management is not just about how you pay your bills or where you invest. You’ve heard the term time is money? It is true. If you can make better use of your time professionally or personally you will have the opportunity to spend less money more wisely, make more money with less effort and improve your quality of life in the process.
Getting rich being lean is not about being cheap, on the contrary, lean emphasizes quality and getting the most out of your money or investments. It is not about buying at the lowest cost it is about buying at the best cost.
Getting rich being lean is not about sacrifice, on the contrary, lean emphasizes eliminating only the wastefulness in life (muda), things and actions that add no value.
Getting rich being lean is not about getting rich quick, on the contrary, while quick wins are acceptable if available, lean emphasizes the idea of many small improvements over time.
What has getting rich being lean done for us?
Honestly we are still far from being rich but we have turned the tide on our debt load. We have paid off everything except the mortgage. The mortgage however is on track to being paid off 12 years early on a 30 year note. For the first time in our lives we see a possibility of retirement because we are accumulating wealth. All of this after accepting a 50% reduction in income when I took the job noted above and my wife quit her job to take on the bigger challenge of motherhood!