Mastering Money Is One Of Your Most Critical Steps To Financial Freedom

According to T Harv Eker, author of "Secrets Of The Millionaire Mind"

, the habit of managing money is more important than the amount. To master money, you must learn to manage money and therefore managing money becomes one of your most important steps to financial freedom.

This article sets out a simple system for managing money which I learned at T Harv Eker"s amazing seminar "Millionaire Mind Intensive" in December 2005 and which has helped me become financially free in less than five years.

The key principle is not to put all your money in one place or account but instead, separate it into separate amounts for different purposes. Split your income into 6 accounts as follows:-

1.Necessities Account (55%) - to pay your regular bills, the mortgage etc

2.Financial Freedom Account (10%) "" the goose that will lay the golden eggs and this is capital never to be spent but invested to create or purchase passive income

3.Long Term Savings For Spending (10%) "" for major expenditure items such as schooling or a replacement car

4.Education (10%) "" this is for your education. As Harv says "the learners shall inherit the earth while the learned will be beautifully equipped for a world that no longer exists"

5.Play (10%) "" this is to nurture yourself and your inner child. It"s the guilt free money to have lots of fun with e.g. ordering a very special meal out with champagne or a luxury massage

6.Give (5%) "" to really help other people out. Giving opens the way for receiving and is the key to living a truly fulfilling and successful life

It"s a great idea to get your children into the habit of separating their money into these six jars as soon as possible.

Until you can show that you can handle the money you already have, you won"t receive any more, so just start with 1 or $1 and set up 6 jars which can ultimately become 6 bank accounts. When you begin to manage money, you"ll start having more money to manage "" it"s an amazing principle but it really works! Put your attention on your Financial Freedom Account (FFA) every day and deposit your daily change into the FFA jar. Then, once a month, take the money out of the FFA jar and invest it for capital growth.

As Harv Eker says, financially poor people work for a different reason to rich people. Financially poor people work to pay for their lifestyle whereas rich people work to invest. Managing and mastering money is easy when you implement a simple system like this and it soon becomes one of your most important and productive steps to financial freedom.

by: andrew bridgewater

POST COMMENT

We Manage Your Financial Concerns Research On Garmin Forerunner 305 Reviews International Calling Cards, Talk Free, Save Money Increase Your Chances Of Financial Success In 7 Simple Actions Movie Review: Blade Runner A Review Of Backhoe Buckets A Review On An Animation Institute Can You Make Money By Taking Surveys? Money Saving Reception Ideas Financial Assistance For Single Mothers What Is Ashmax? Ashmax Review Saving Money In Pittsburgh Pennsylvania With Aaa Discounts What Hard Money Lenders Consider The Best Investment Right Now?