Your Finances to Achieve Long Term Wealth
Ask the average person what financial management means to their life and the standard response will be in the form of 'Pay off all Bills within the stipulated time frame and attempt to save the money remaining.' This doesn't sound like much fun huh? Here I outline a simple method of changing the way you view and treat money. A practical and efficient way to control and monitor your finances, and to get out of debt, which is also enjoyable, and if implemented consistently...the benefits over the long run will be extraordinary. Here are the seven methods you can use to distribute your money. If you're able, setup 7 separate Bank Accounts for each specific use and 7 Jars, Boxes , or any The Millionaire Drive other containers that you can think of will work just as well to get you started. You must do this on a regular basis , and you must maintain i.e. Daily, weekly, or monthly. 1. Investments: Affix 10 percent of the earnings to be saved for Investing. You should only ever use this money to purchase Investments. They should earn an ongoing "residual income" or capital appreciation or growth i.e. selling them for profit. When you have enough capital or funds and invest in the appropriate investment and then begin building again until you have enough funds for the next and keep repeating the cycle. This is by far your most important fund as it this that will ultimately work towards achieving your Financial freedom/Independence. 2. Long Term Savings: 5percent of your funds should be allocated for 'one special' purchases such as Cars, Clothes, Home Furnishings, Home Improvement, Home Entertainment. This should also be used for vacations abroad or long getaways. 3. Long Term Expenses: Another 5% should be allocated to any ongoing small amount of debt, which is usually Credit Cards or small Personal Loans. 4. Necessities: These are your main living expenses and thus 55% will be allocated to these: Mortgage/Rent Car Loan, Utility Bills Food, Petrol/Travel Costs, Subscriptions...you get the picture... 5: Education: 10% of your funds is to be used for continuing education in Financial intelligence and personal development. This is essential as you can not stop studying and developing yourself. This includes: Books and DVD/CDs; Seminars, Workshops, travel and accommodation expenses, training Material , etc... 6: Fun: Another important fund. Life as you know isn't long enough and if you don't treat/reward yourself every now and again throughout the course of your life, it can feel very monotonous and dull. - A portion of earnings is spent here, and at the conclusion of each month/week/quarter, you'll have to spend the whole sum on a treat your choice e.g. your favourite restaurant, theatre, spa treatment. - You are only limited by your creativity...The concept is that you truly enjoy yourself and recognize that you have put funds aside for this, and you don't have to feel guilty about it! 7: Charity: Wealth is meant to be shared, the 5% is used to give back to the most in need. You can either make this a regular contribution or save it and work towards making a substantial donation to the cause that you like. The more you contribute to the cause, the more reward you get... Do not think that you need lots of money in order to begin this process, because you do not...You may start with small amounts. The important thing is to make it a habit. Beginning with a modest amount, the principle of compounding will gradually grow to something more substantial. Teach this to your kids as early as they can and watch how fast their financial knowledge will increase as will their fortune!

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