24/7 Entrepreneur

[HOW TO] Manage Your Money: The 3 Main Factors

Often, you will find me speaking about making money in my blog, instead heres a short “how to” on managing money and keeping more of it.  When followed properly, and applied over time, this article can lead you to creating long term wealth.

My personal belief is that there are 3 main, and important factors that goes into obtaining money and keeping it -

1. Your language, spirituality, and attitude towards money.
2. Your Management of money.
3. Your Action towards Success

Language about Money

“To Become A Millionaire You Have to Think like one First.  Your Thought Processes will Always reflect your Bank Account.” – Jeffery Combs

Here is something I didn’t learn until I was 24, your thoughts and language  is very important towards how well you receive money.  If you speak words that are poverty driven, you will end up in poverty.   Speak words of prosperity, and you will start to become more prosperous. You’ll never hear a millionaire say something like, “I need this deal to work.” or “I can’t believe this happened to me.”  You must have a prosperous language that you think, speak, and act upon.  Big money earners think and act differently then the status quo.

Simple changes in your language can actually affect your results in life.

Change “I’m not good with money.”  to  ”I’m great with money.”

Change “I need more money” to “I deserve to experience all life has to offer.”

Change “If I could just pay my bills.” to “I want to double my income, working half the time.”

Now I know this whole speaking like a millionaire thing may sound a bit far fetched, (it did to me at first) but maybe that’s the exact reason why people stay broke.   If you never believe its possible that you can become a millionaire, then how could you ever become one? If you are living in constant fear that you will run out of money, you probably will.

Management of Money

“Rich people manage their money well.  Poor people mismanage their money well.” – T. Harv Eker.

You don’t actually “manage money,” you manage yourself, which in turn protects your wallet.

I went for my undergrad at SUNY Albany for Accounting, and here’s something they never taught us, how to manage our own money.  I’ve heard a number of different strategies on how to do this, but I believe T. Harv Eker hits the nail on the head with one of his methods.   This is a strategy taken straight from T. Harv Eker’s “Secrets of the Millionaire’s Mind.”

1. Open up a separate bank account designated your Financial Freedom Account.
2. Put 10% of every dollar you receive (after taxes) into this fund.
3. This money is never spent, only invested.   It is used for investments & buying or creating passive-income streams; such as businesses.
4. Eventually,you get to spend the income from the fund, but never the principal / initial investment itself.  This will create passive income for your retirement
5. “It doesn’t matter if you have a fortune right now or virtually nothing.  What does matter is that you immediately begin to manage what you’ve got, and you’ll be in shock at how soon you get more.”
6. Additionally, create a Financial Freedom jar in your home. This is place where you put all your loose change, and even extra cash into, in order to get used to being around money.   You fill a fridge with food, and feed a plant with water, so why not keep a jar around filled with cash.  I like it.
7. Separate another 10% of every dollar you receive, this is your “play money.” This is money that you are REQUIRED to spend every month.  Obviously, this is my favorite step.
8. Make sure you spend the play money doing things you wouldn’t normally do.  Its not for groceries, buy yourself a new shirt, go out on a fantastic date,  receive a top of the line massage, take a awesome cruise at the end of the month or even buy that thing you’ve always wanted.
9. Create 4 more accounts:
10. 10 percent into your Long- Term Savings for Spending Account. (Such as a new car, wardrobe, travel, riskier business opportunities)
11. 10 percent into your Education Account. For your children and for your expanded knowledge.
12. 50 percent into your Necessities Account.
13. 10 Percent into your Give Account.*

*Personally being someone  who has had a lot of debt, negotiate the terms of your debt first, and pay it off using money in your give account first.  You have to help yourself before you can truly help others.  Leave a comment below if you would like me to do a future blog post on a strategy of how to “Get Out of Debt” effectively.*

You may want to get Quick Books to help you manage your accounting.   What you can measure, you can improve.  Plus, Entrepreneurs must be aware of all their tax benefits they’re eligible for.

“It doesn’t matter if you have a fortune right now or virtually nothing.  What does matter is that you immediately begin to manage what you’ve got, and you’ll be in shock at how soon you get more.”

Action Must be Taken.

“Success is what we do Daily.” – Jeffery Combs

This isn’t The Secret, just because because you speak like a millionaire, and do your accounting correctly, doesn’t mean money will just fall out of the sky, action must be taken.  In fact you must have a focused, plan of action.  To learn more about what type of action to take, I recommend watching the following video of one of my mentors, Jeffery Combs.  Jeff is a business coach whose expertise is “Millionaire Mindset.”

(Make sure your volume is on and clear!)

Your Plan of Action Must be:

• Simple,
• Methodical,
• set for a specific time frame,
• laid out with a clearly defined goal,
• worked on daily.  Be committed.

Learn more about Jeffery Combs at Golden Mastermind Seminars.

Final Points:

• To become a Six figure income earner or even a  millionaire you must think like one first.
• Surround yourself with people having the results you desire.
• Separate your Income into 6 sections.
• Figure out what the cost of your necessities are, and make sure you’re at least doubling it with your income.
• Balance your Investments, with your play money.
• While your language, and your accounting is important, nothing can change without ACTION.
• Action is all about Discipline.
• Money doesn’t bring Happiness, but it does make it much easier to pay for the trip.

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