Separate all income into separate bank accounts for specific purposes. Be excellent in managing your money. Have good money management habits. You are in control of how you manage your money. To become financially free you need to start managing your money.
Have an excellent money management system and separate your money in the financial freedom account, long term savings account, education account, necessities, play and give account.
Financial freedom account
Capital in the financial freedom account is not to be spent. Never spend the capital. The amount is to be saved an invested. Invest in stock, bonds, real estate. Never spend the principle. If you sell an investment, put the money back to the financial freedom account. Let your financial freedom account grow. Never spend the capital.
You should not have just one financial freedom account vehicle, you should have several. Focus on one vehicle first and when successful, focus on the next.
Long term savings accounts
The long term savings is for major spendings. You can divide the long term savings account into sub long term savings account. Save for vacation, car, contingency, clearing out debts.
Education allows you to learn how to make more money and how to grow personally so you can become a person that can create financial success and keep it. Education allows you to keep and invest your money wisely and make wisely financial decision. Education is an expansion of who you are.
Necessities account is to pay bills, mortgage or rent, food, utilities, car payments. Simplify your lifestyle. Look at what you are spending your money on and either earn more money or spend less.
The play account is for entertainment, massage, mini get aways, extra clothes, hot stones, wine. You must spend this money monthly or quarterly. Blow it and have a blast. Reward yourself for what you are doing in your life. Nurture your inner child. Express your free spirit.
The play account is for nurturing yourself, to strengthen your receiving muscle. You are worthy and you deserve to receive more.
Give account is for charities. If you want to give more charities to organisations that are doing good things in the world, you can take the money from your give account or necessities account. There are also other way to give. You can give your time.
Where should you keep your money?
Keep your money in the separate bank accounts. Put your income received into one clearing account, for instance your necessities account and transfer the money into the other accounts. How should you pay your credit card bill? Review your credit card statement and designate which account each expense comes from.
Pay from each account with separate checks or transfers. Manage your money and become financially free.
For your financial success!