I wanted to post some great information from a conference I attended for the users of this forum. I'm a entrepreneurial new mother, so for me, keeping my budgeting, finances, and spending under control is so very important. I have to make sure I can feed my baby after all! So if any of you have heard of the Millionaire Mind conference, you'll know that it's very popular and gets great reviews. The guy who runs it - Harv, is a very successful person and trains other millionaires. So I attended the conference. It was great - in it, he teaches that it's not about turning down the heat so you're cold, and saving a few pennies here and there. He gave great examples as to why - saving pennies and stressing out doesn't solve problems. He gave a good breakdown of how you should allocate your money to different pools. He mentioned that every 2 weeks, you should allocate your money to the following pools (just open a bank account for each pool):
50% of money goes into necessities - so a chequing account
10% - education account - a necessity really as we always need to update our education - if a lot of money gets built up, i'll go to another such conference or put it towards my kids education
10% - play account - use this to treat yourself - do something that the super-rich would do (i.e. treat yourself to a massage with the money in this account - it will make you feel better and you'll perform better in your job and in life)
10% - financial freedom account - use this money to make investments to build passive income
10% - giving account - use this to help - give and you shall receive. He mentions that the richest people on the planet give significant portions of their income - its the law of the world - give more, get more
10% - set up an emergency cash fund / rainy day fund. or if you're an entrepreneur - set up this fund for tax purposes
Hope this helps,
Jessica
50% of money goes into necessities - so a chequing account
10% - education account - a necessity really as we always need to update our education - if a lot of money gets built up, i'll go to another such conference or put it towards my kids education
10% - play account - use this to treat yourself - do something that the super-rich would do (i.e. treat yourself to a massage with the money in this account - it will make you feel better and you'll perform better in your job and in life)
10% - financial freedom account - use this money to make investments to build passive income
10% - giving account - use this to help - give and you shall receive. He mentions that the richest people on the planet give significant portions of their income - its the law of the world - give more, get more
10% - set up an emergency cash fund / rainy day fund. or if you're an entrepreneur - set up this fund for tax purposes
Hope this helps,
Jessica
