Last week I shared with you about the useful 6 accounts money management.
- 10% Financial Freedom Account (FFA)
- 10% Long Term Savings for Spending (LTSS)
- 55% Necessities (NEC)
- 10% Education (EDU)
- 10% PLAY
- 5% GIVE
As I said before, there are many people who attained the Millionaire Mind Intensive, however everyone has a different understanding. And, what I am going to share, is merely my own point of view. I hope it also works for you. If your are okay with this, then keep reading.
10% Long Term Savings for Spending (LTSS): Exactly what it sounds like, this is an account you save up money for a long time, in order to spend on something you can't afford, right now. It can be a new refrigerator, a new iPhone, an airplane ticket, a new car, or a new laptop. Use this account to save money for something you want to buy. You can also separated into 5% and 5% if there are two things.
55% Necessities (NEC): Use this account to pay the bills, pay for your loans, get foods, buy groceries. And, no, ladies, the exquisite DKNY dress is NOT necessary clothing. Don't worry, though, we have another department taking care of that. If you find it a little bit hard for you to survive with 55% of your income, try live a lower budget life. Stop spending on things you don't really need can help you achieve financial freedom faster.
10% Education (EDU): I couldn't emphasize how important it is to educate yourself. There is so much to learn in life. And, even the most successful people keeps one learning all the time. The most dooming words are" I know that". So, make sure to educate yourself, take some classes, go to seminars, read more books, visit a museum, or even learn a new talent.
Are you antiseptic about the Play Account? Well, I have decided it should get more attention. So, be back here next week, I'm going to show you the other two account you would never thought important. I'll show you must enjoy life and spoil yourself in order to get rich and how you can earn more by giving more. I believe many of you have got your paycheck or salary in the beginning of this month, if you haven't set up you 6 accounts or jars, do it now! It is all about habit!
For the Easy Money Management PART I , please click here.