The author of “We Should All Be Millionaires” shares 5 steps to create your million-dollar system

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

• Self-made millionaire Rachel Rodgers created a five-step “Million Dollar System” to help people build wealth.
• It starts with knowing your money: Track your net worth and credit score, and check your finances daily.
• Then, build future financial goals to set you up for good money management. 

Rachel Rodgers is a self-made millionaire — and she has a system to help you become one, too.

In her book, “We Should All Be Millionaires,” Rodgers discusses misconceptions about money and money management that keep us from realizing financial freedom. She says it’s important to slam the shame wall and get rid of fear when it comes to taking control of your money.

Here’s how her “million-dollar system” works, in five steps:

1. Track your net worth

This may be a sobering number at first, but knowing your net worth (total financial assets minus total financial liabilities) and tracking it frequently is important if you want to build wealth.

Even if you aren’t starting with much, checking it consistently and understanding the basis for your net worth — especially your liabilities — will influence how you make your financial decisions. Your net worth goes beyond your budget, and by tracking it, you will start to see how your decisions affect your bottom line.

2. Know your credit score

Your credit score is important. A good credit score gives you more options for everything from credit cards and personal loans to apartment rentals to insurance. The better your credit, the more access to capital you have to start a business, buy a home, get a business loan, or apply for a credit card.

Take the first step right now by going to freecreditreport.com to get the latest copy of your credit report and sign up for a monthly credit monitoring account through Equifax or Experian. “What gets measured gets managed,” writes Rodgers, so the more you keep track of your credit and how your choices affect it, the more you will make better financial decisions. 

3. Research incorporation and open a business bank account

I have always heard this quote: “You will rarely get rich working for someone else.”

While that doesn’t have to be true, it is the case that the vast majority of millionaires are self-employed — including Rodgers.

The first step toward starting a business of your own is to research creating a business entity and what business would be right for you. A great way to do this is starting a side hustle. I always say that everyone should have a side hustle for multiple streams of income. With incorporation and business income, you can open a free business checking account. There is nothing like a new business bank account to motivate you to grow your business.

4. Get a bookkeeper and check your finances daily

Create a habit of checking your bank account balances and recent transactions every morning. The daily check-in is important to notice potential issues before they arise and see your spending and earning in black and white. Recognizing these patterns will give you ideas on how to improve your money management. 

Consider a budgeting app for personal finances and bookkeeping software like QuickBooks for your small business. You may even want to hire a professional to help you keep track of your finances, especially if you manage a small business. 

5. Go to ‘Money Church’ every week

Don’t worry, you can attend in your pajamas.

“Money Church” is time carved out every week to sit down with your finances. Review your accounts and latest financial statements. Write down and highlight any patterns you notice after looking at the numbers.

Also, take this time to shut down any limiting beliefs. Tell yourself you are good with money, you are seeing progress toward your financial goals, all debt is not bad, and that your credit score is improving. Then brainstorm new money-generating ideas and more ways to save money and set future financial goals. 

It’s in everyone’s best interest to get good with money. The more money you have, along with good money management skills, the more options and possibilities there are for you and your life.