Ask the average person what money management means to them and the normal answer will be consistent with & # 39; Pay all bills in time and try to save whatever is left. & # 39; – Not very inspiring or sounds like fun? Here's a simple way to change how you look and treat money. An effective and practical way to manage and monitor your finances and get out of debt, which is also fun and if it happens constantly … the long-term reward will be incredible.
Below are 7 ways you should distribute your money. – If you can set up 7 separate bank accounts for each specific use, otherwise 7 jars, boxes, or some made containers will work as well as you start. Be sure to do this on a regular basis as you must Daily, weekly or monthly.
Allocate 10% of your money to set aside only for investment. Only use these funds to buy investments. These investments should either generate you continuing revenue and # 39; or capital expansion / growth, ie. sell for profit. When you raise enough money / capital, buy a relative investment and then start building again until you have enough money and continue repeating the cycle. This is by far your most important fund as this is what will totally work to achieve your financial freedom / independence.
2. Long-term savings:
5% of your money should be online and one and & # 39; purchase such as cars, clothing, home furniture, home improvement, home entertainment. This should also be used for holidays abroad / tours.
3. Long Term Costs:
Another 5% should be linked to continuing low debt, usually credit card or small personal loan.
These are your main costs and therefore 55% will be allocated to this; Mortgage / Rental, Car Loans, Utility Bills, Food, Gasoline / Travel Expenses, Subscriptions … you get the picture …
10% of your money is related to constant learning financial intelligence and personal development. This is very important because you can never stop learning and improving yourself. This would include; Books, DVDs / CDs, Seminars, Studios, Travel and Accommodation, Training Materials and so on …
This is another important fund. Life as you know is too short and if you don't treat / reward yourself sometimes and again along the way, it can feel very laborious and will be very boring. – 10% of your money goes here and at the end of each week / month / quarter you have to blow everything into treatment waste, such as your favorite restaurant, theater, spa treatment. – You are only limited by your creation … The idea is that you really use yourself and acknowledge that you have put some money in front of this and you are not guilty of it!
Wealth is dividing, 5% goes to give back to those who need more. You can either make this regular donation or save and build on a big donation to charities / causes of your choice. – The more you give back, the more you get …
Please don't assume you need a lot of money to start doing this either, because you don't … You can start with a very small amount, importance is to make it habit. Even starting with a small amount, the principle of blending can grow into something significant. Teach this to your kids from an early age and just watch how fast their financial intelligence will grow and their fate!