Money Management Part 1- Success & Prosperity Principle

wondersofnature (55)in #learning • 7 years ago (edited)

Hi there Steemians! Its learning time again. On my previous blog we talked about the Ultimate Success Formula. If you haven`t read it you can check it here. Today what we will talk about is the first part of Money Management - Success & Prosperity Principle.

Managing your money

What do you always tend to do when you receive money? I bet the first thing that will come to your mind is eating on your favorite restaurant?, go shopping with friends or family? Paying all your bills or maybe go on travel? Doing those things, who do you think your paying first? Well, technically you are paying the business mans who owned those businesses. But why not pay yourself first? Sounds weird right? How are we going to pay ourselves? That`s what we will talk about today.

Image source Mezicommerciali

Let me ask you first,
What is Financial Freedom? Well, maybe financial freedom to you means having a lot of money and not worrying of anything else rather than spending it. But how will you go about having a lot of money? My mentor once said that Financial Freedom is about earning without working too much. And so today I would like to share what I learned from his seminars. He taught us about using a very sophisticated way of managing our finances. Are you excited to know about it? Well, here it is...

Image Source Tangerine

The Money Jar system!

Funny right? How could this jar change our way of money management? So here we go.
In this exercise, you need to come up with 6 transparent jars. You can use a glass or a plastic jar as long as its transparent. You cannot use envelopes or boxes, it needs to be a clear jar where you can clearly see whats inside. Each jar will have their own name and purpose, so you need to prepare a sign pen as well. But on this blog, we will only discuss the first 3 jars.

The 1st Jar will be the “I ALWAYS HAVE MONEY” jar

In this jar, you will practice your Magnetting thoughts. You will have to think that you have a lot of money. But how? You need to remove your Mind Virus first. Mind Virus is the negative thoughts programmed in your mind attracting negative energy. So here`s what we need to do.

Whenever you receive money in your hand, whether its from your salary or given by someone, make a habit that you put the 1% of it on your I always have money jar. While dropping every piece of your money in the jar you need to affirm this line “I always have money, I always have money, I always have money”, on the last piece of your deposit your affirmation will be “I always have money that I NEVER NEED”. As you affirm those words you are starting to program your mind that you always have money, you are also starting to attract more money! Remember how powerful your mind is? Now, place your jar in your room where you can easily see it when you wake up in the morning and when you got home. Seeing that money in your clear jar will remind you that you always have money. Keep in mind that the money is intended only on that jar. Do not spend it, don`t cheat yourself :). And if you have spare coins in your pocket you can also put it in your jar while delivering your affirmation.

Your 2nd jar will be ABUNDANCE SPENDING

Have you ever experience buying something then later regret that you bought it? The thought of feeling guilty because it doesn't seem worth your money? Well, this second jar will teach you to feel happy and not to feel guilty whenever you spend your money. Why do you work hard to earn money if you can`t even enjoy it?

In this jar, you will put 3% of your hard earned money. Then think of an amount that will make you happy when you spend it in just one day. Will you be happy if you have P5000 that you can spend in just 1 day? If yes then write in your jar the amount of P5000 as your target. Continue putting 3% of your earned money in this jar until it reaches P5000. Once it reaches your P5000 target, get it and spend it in just 1 day. Remember, spend it only in 1-day :). You can eat whenever you want, buy whatever you like and notice how do you feel. Believe me, I also did this before and to let you know how I feel? I feel so happy and rich! Why? Because I have P5000 to spend in just 1 day without regrets. Did I feel guilty spending it? No! because my mind is already programmed that this money is intended only for me to spend it within the day. I was able to eat at an expensive restaurant, went shopping and more. What will happen when you feel happy and feel rich? You are attracting more positive energy, happiness, and money.

Your 3rd jar will be FINANCIAL LIBERATION

Of course, you also have to consider investing in something to grow your money and earn passive income. This jar will help you save some amount for your investment. You will also put 3% of your hard earned money to this jar. You will be using it for investment. But where are you going to invest? What is the best investment? So here are the options where you can invest your hard-earned money.

Time Deposit - What is the difference between time deposit and savings account? A savings account will allow you to earn interest less than 1% per year while time deposit will allow you to earn 3% to 12% interest per year.
T-Bills - It`s like investing into Government projects. When the Government needs capital for a certain project, they will initiate to loan from the people through T-Bills. T-Bills can be bought from banks and it offers guaranteed interest.
Mutual Fund - You can now start investing in a mutual fund for a minimum amount of P5000. A mutual fund is professionally managed investment fund that pools money from many investors. Based on statistical and historical records of the Philippines, investing in a mutual fund will allow you to earn 12%-75% per year.
Stock Market - Buying shares of stocks of an expanding company. Buying of their shares of stocks means you are becoming part owner of the company. You can now buy shares of stocks for a minimum amount of P5000. At the end of the year, the profit of the company will be distributed to their shareholders, it is called their "dividend".
Foreign Exchange - Foreign exchange is buying currency and trading it in the market. Nowadays a Crypto Currency trading is also becoming more popular.

Image source Black Skull

Now let's look at the other angle of business. The Ongoing passive business where you can earn passive income with minimal supervisions.

Royalty Income - Example is writing a book and singing a song. It will allow you to earn royalty income from the book or song album that will be sold in the market.

Buying artworks, antiques and collectibles - Artworks like painting and sculptures, and collectible items appreciate its value as the time goes by.

Real Estate Rental - Buying land properties and building apartments for rent will give you passive income.

Do you see now how these jars could change your financial system? The key is "Consistency" all you need is to become consistent in managing your money and nothing is impossible.

On my next blog, we will talk about the 3 remaining jars. So if you are ready to change the way you manage your money, go ahead and start with your Money jar system.