Thursday, January 21, 2010

The World's EASIEST Money Management System

I recently attended T. Harv Eker's Millionaire Mind Intensive Seminar late last year in Singapore.

I just want to share something I picked up that made a powerful change in my life.

Maybe it can make a difference for you as well.

At one point in our lives, we can agree that we have experienced struggling with our finances. We often ask ourselves what is the best way to managing and budgeting our money?

This is the easiest and simplest money management system available out there, and Harv is teaching this for Free!

Why Manage Your Money?
T. Harv Eker Calls this the Money Game. The objective is to properly manage and budget your money so that you get more. It is a Universal Law that whatever you manage, you get more of. It says so in the Bible, the Parable of the Talents,
"For the one who has will be given more, and he will have more than enough. But the one who does not have, even what he has will be taken from him." (Matthew 25:29)

Step 1: Preparation
Find 6 Jars. It doesnt matter if it's not the perfect jar. Any container will do for the moment. A cup, a plate, an envelope, or even a bag is OK.

Step 2: Setting Up your Accounts
Label Your Jars according to the following:
1. FFA - Financial Freedom Account - This is your Golden Goose that Lays Golden Eggs for you. This is also called your Money Magnet. ABSOLUTELY DO NOT spend the money in this account. Spending the money from this account is equivalent to killing off your Golden Goose. Only use this money on investments that give you more money. Read and explore more articles regarding investments. The key here is to invest the money at Passive income businesses whenever possible.
2. LTSS - Long Term Savings For Spending - This is your account to store money for your dreams. You can decorate this Jar and label it with whatever you want to buy in your lifetime. Use the money here to spend on something you want long term, like a dream house, a car, a getaway trip with your family to the Bahamas, purchase an ocean cruise for your family, etc.
3. EDUC - Education - Invest this money for your Financial Education. Use this money to buy books, audios, attend seminars and trainings. This will increase your value in the market, and increase your capacity to bring more money. Never be afraid to invest in your financial education!
4. GIVE - Give - This account instills an abundance mindset within you. You allocate a portion of your money to give back to the universe. This affirms your belief that whatever you give away, more will come to replace what you have given.
5. PLAY - Play - This is the Fun account. The money here is meant for you to enjoy. YOU HAVE TO BLOW this money every end of the month. Spend it on something fun and worthwhile so that you know you enjoy what you are earning. Spend it on Massages, enjoy a steak in a fancy restaurant, buy a nice watch or a nice shoe, plan a trip out of town for the weekend. ENJOY!
6. NEC - Necessities - Spend this money for your DAILY NECESSARY EXPENSES. Spend this ONLY on necessary things like food, commuting or travel, laundry, etc. If the money allocated here is not enough, Simplify your lifestyle in the mean time. Your Accounts will compound in the future and you can upgrade your lifestyle by then. Ladies, spending this money to buy 5 shoes in a week is NOT a necessity!

Step 3: Daily Habit
Everyday, deposit any small amount to your FFA. I started by depositing centavo coins only. Develop the habit of depositing ANY small amount. This is a DAILY habit and must be done EVERYDAY.
The purpose of this is three-fold:

1. To Strengthen Your Money Magnet. The stronger your Money Magnet, the faster you will attract wealth to you.
2. To develop the habit of Saving Money.
3. To increase your Financial Freedom Funds.

Step 4: Manage Your Income
Every Pay Day, divide your net income in the following ratio:

* 10% of your income to your FFA account
* 10% of your income to your LTSS account
* 10% of your income to your EDUC account
* 10% of your income to your PLAY account
* 5% of your income to your GIVE account
* 55% of your income to your NEC account

If it is not enough, or you think dividing all of your money is a bit tight on your budget, simply take a portion of your net income and divide that amount to your jars. Example: start managing only 100 pesos or even less.

Key Points:
It is NOT the amount that is important. It is the HABIT of managing your money.

Take Action
So, What are you waiting for? Try it now! What have you got to lose?
Get those jars ready and start managing your money. I guarantee you will have improved your finances and experience small to big miracles in your life just by using this system.

I hope to hear from you a week or a month later. Expect miracles to come.

Enjoy!