I went to a 3 day conference called "Millionaire Mind" put on by T. Harv Ecker. He taught us one amazing principle that I implemented immediately.
Here it is:
Create 6 Accounts.
Necessity: 55%
Financial Freedom Account (FFA): 10%
Long Term Savings Account: 10%
Education Account: 10%
Play Account:10%
Give Account: 5%
Financial Freedom Account (FFA): 10%
Long Term Savings Account: 10%
Education Account: 10%
Play Account:10%
Give Account: 5%
The Necessity account is for your bills, food, gas, etc.
The FFA is money to invest.
The LTSA is for a huge trip you want to take, a house you want to buy or other large things you want to save for!
The Educ account is to continue your education. He kept saying that, "If you're not learning and growing, you're dieing."
The Play account is for you to have FUN!!! This HAS to be spent every month on YOU. Something YOU want to do (of course you can pay for friends if that's great for you!). This helps build a better relationship with your money because you no longer feel guilty about spending it on nice stuff.
The Give account is to give back. To charity, to a friend, whatever. It's just important to create the giving and receiving cycle for yourself.
You can always play around with the different percentages according to what you need!
Personally, this has relieved a lot of stress from my life. I quit over spending and feel that I actually have a budget to do what I want. Last night I went to SWIHA and got a massage. They are only $33 for an hour with a student and $45 for a licensed practioner. I had a student. She was so wonderful and worked so hard. I tipped her $15 which I would have originally felt guilty for, but yesterday...it was AWESOME!
I felt so grateful that I had the money to give to her. I even tipped her before the massage started because that's when I had to pay. A little voice told me that the better I tipped (the more I was willing to release from my life to benefit others because I did not need it) the better the massage would be for me. IT WAS AMAZING!!
Lots and lots of LOVE LOVE LOVE LOVE!!!
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