If you want to reach your financial goals, it helps to have multiple accounts. As a minimum, include the following:
1) FFF - Financial Freedom Fund for the money you need to invest in the stock market or a business that will produce passive income.
2) Contingency - for the money needed for life's unexpected circumstances (car breaks down, pet needs surgery, unemployment, etc.). Typically 3 months of your net salary.
3) Give - for the money you want to give to charity, church, or someone you want to help.
4) Nec - short for Necessities for the money to handle your bills.
5) Play - for the money to enjoy life's pleasures.
Notice I saved the best for last. If you have a Play account for money you have to blow every month, you are much less likely to sabotage your FFF account. You still make sacrifices but it makes sacrificing in other areas much easier.
I've seen programs from people who say you have to practically starve yourself (Go without utilities, etc.) in order to reach your financial goals. To each, their own. I know life was not meant to be difficult. Yes, challenges here and there, but a struggle? Absolutely not! When you find your flow, get into a rhythm of financially responsible habits, things fall into place.
Here's a simple check on your financial condition: just look in your kitchen pantry. Are things in order, or does it take you 10 minutes to locate that canned good?
How you manage your money is key to being financially successful. Respecting and valuing money go hand in hand. If your kitchen cabinet is a mess, chances are your finances are too. But it doesn't have to stay that way. Start now.
Follow the simple money management approach I noted above and watch your world change. It worked for me and it can work for you too!
Aneshia
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