I am currently re-reading the Secrets of the Millionaire Mind by Eker, T. Harv, and this book has really good tips on managing your money.
The author says that in order to be granted more money in life, you first have to manage what you have properly. When you gain the ability to manage your money, the universe will send more your way as you will be able to handle even more.
I have been dividing my paycheck in multiple accounts for years… retirement fund, necessities, education, etc… and this has helped me to achieve growth financially, but what T.Harv suggests is even more accounts.
He suggests to open the following accounts and divide your money as follow:
Financial Freedom Account: 10% >> This money is only to be used for investments and buying or creating passive-income streams.
Play account: 10% >> This money is used to balance the previous account and let yourself enjoy the money you have earned with extras, on a budget that has to be spent entirely each month.
Long-Term Savings for Spending Account: 10% >> This money is saved to be used on the long term.
Education Account: 10% >> This money is saved for education purposes.
Necessities Account: 50% >> This money is to be used to cover all your monthly expenses.
Give Account: 10% >> This money is used to give away for those in need.
Managing your money
As you can see managing your money is not that difficult. You can start at any budget right now. There is no point to wait having the money before doing this, as this is what will give you more money…