Managing your money

The Habit Of Managing Your Money Is More Important Than The Amount!

In T. Harv Eker's Millionaire Mind Intensive, both trainers Harv and Robert have been emphasizing on the importance of setting a money management system with the jars or different accounts.
There are 6 jars or accounts that has specific purposes:
1. FFA - This is your Financial Freedom Account. This is a jar or account that you used to grow your assets with positive cash flow whether is it stocks, bonds, businesses or properties for rental and etc. The money in this jar or account must never be spent and you have to put in money every day to attract more. Like attracts like. The money inside the FFA must never be spent and when there are returns from the assets, the money should be channeled back into the FFA, to grow The Golden Goose! 10% of what you earn will go into this FFA jar or account.
2. NEC - This is your Necessities Account. The money in this jar or account should be used for your daily necessities like utilities, hair cut, meals and etc. 50% of what you earn will go into this NEC jar or account.
3. LTSS - This is your Long Terms Savings for Spendings account. The money in this jar or account is to be used for your purchase of bigger and luxurious items like a mortgage for your new home, your exotic vacations with your family, the HDTV that you always wanted to have, the payment for the Ferraris and Porsches that you always wanted to buy, your children's college education and etc. 10% of what you earn will go into this LTSS jar or account.
4. EDU - This is your Education account. The money in this jar or account is for your own education purposes, not your children. As what Jim Rohn always say, formal education makes you a living and self education makes you a fortune. I would not have been what I am today and am able to absorb so much of T. Harv Eker's had not it been for the self education I am engaging since 2002. 10% of what you earn will go into this EDU jar or account.
5. PLAY - This is your Play account. It is meant for you to enjoy yourself and reward yourself every month. The money in this Play account must be blown every month with nothing left. The only compromise of blowing it only in a quarter is when we have something more extravagant that we want to reward ourselves with, like a Rolex Sea Dweller watch that I will buy :)! Now I finally know why I am not having my wealth grows as much as I want to because I have only been focusing on growing the money but not rewarding myself of what a great job that I have done. 10% of what you earn will go into this PLAY jar or account.
6. GIVE - This is your Give account. An account that you contribute to the charity or hardworking folks that you believe should be rewarded with what they do. We always hear the saying that "It is better to give than to receive" and both Harv Eker and Robert rebuke it saying that the person who says it is on the receiving end. That is really interesting. In actual fact, this term originated from Greek and the saying is actually "It is better to be in a position to give than to be in a needy position to receive!" 10% of what you earn will go into this GIVE jar or account.
Some of you may face extreme challenges in following this system as the income that you are getting right now may only be enough for all your expenses. It is OK as I am not able to allocate my income right now account to the mentioned money management system too.
But, look at the title of this article, I have started with putting S$100 now with the intention to double the amount whenever I can but never dropping below the previous month amount and I am also putting money in my FFA jar every day. Some of you may think that this is hard work, allocating your finances but if you cannot even accomplish this, what makes you think that you can become rich where getting rich is even harder.
Anyway, life is a matter of choice. The choice is up to you!
You have a Millionaire Mind!
Eugene GohEugene Goh is currently working for a Swedish company specializing in the treatment of wooden floors. Since 2002, he has been involved heavily in personal development after being exposed to it and reading his first self help book Rich Dad, Poor Dad
During a preview, summit and boot camp in May and June 2007, Eugene has realized the true potential of marketing, be it direct marketing, internet marketing or network marketing as these are all not different businesses but just different channels Eugene has then recognized his passion is in marketing and wants to learn from everyone in the marketing industry to become better and share with any newcomers who wants to use any of the marketing channels to start making some extra money.