Step 1 in the Money Management System That Beats Them All…

This is it!

As far as your personal financial potential is concerned, the next few posts will be the most important you will ever read.

If you genuinely want to join the elite 5% of all the people and experience financial freedom, you are about to discover the secrets that can transform your life forever.

At the end of my last post, you’ll recall the example I gave about a baseball team taking the field and everyone going to 3rd base. We agreed that using this defensive approach would almost certainly lead to failure.

In baseball, there’s a reason for each of the positions. Each position has a job to do, and it is critical that each position be filled, or else there’s a darn good chance that the team will lose.

But when it comes to winning the money game, 95% of you are playing with your whole team standing at 3rd base! And that’s why 95% of you will struggle financially all of your lives, and never reach your full financial potential.

Just as the baseball team has different positions with different jobs, the most important feature of managing your money is to separate your income into separate accounts for specific jobs and duties.

So what you’re going to do is divide your money into 6 separate cookie jars or accounts every time you get paid. The percentages I’m going to give you are flexible but they are basic guidelines and they’ll change according to your income and your age.

All of the references we’re going to be talking about here are all based in after tax dollars. This is money that actually comes to you, not the government.

If you get your money clear, in other words, the taxes are already taken off, you will need 6 accounts or jars. And if you don’t have your taxes taken off and your income comes to you as a gross amount, you will have to take a portion out and use a 7th jar or account to hold your tax money in. You have to have a person who is in the position of handling the tax. Understand?

The first account here is what we’re going to call our Financial Freedom Account. 10% of your income will automatically go into this account every time you receive any money from now on, for the rest of your life.

So, for example, if you get $100, $10 automatically goes into your FFA jar. This is capital never to be spent, only saved or invested to create your “golden goose”. But it can’t become your golden goose until you stuff it with money. You can also use this money to purchase or create passive income structures. So it’s primarily used for all of your investments and to create or start passive income structures. Got it? This is going to be your goose.

What can this money be used for?

Money market accounts. Stocks. Mutual funds. Your IRA and Keogh plans. 401K’s. Mortgages. Term deposits. Savings accounts. Bonds. Income producing real estate. Vending machines. Car washes. Storage units. Specially structured life insurance contracts. Annuities. You get the idea.

OK, good. Now, when do you get to spend your FFA account?

I hope you said never!

Why?

Because then you will kill the goose. And this is the number 1 mistake almost everyone makes. They save money and then in the end they spend that money.

YOU ARE NOT ALLOWED TO EVER SPEND THE MONEY THAT GOES IN YOUR FINANCIAL FREEDOM ACCOUNT. EVER!

So how do you live?

From the interest and dividends and profits that come from this money. You live from the eggs that come from the goose, never from the goose itself.

This money goes to your will. This money goes to charity. This money goes to your church. This money goes to your children. Wherever you choose it to go, the only person it never goes to is you. Do you understand this? This is part of the legacy you leave. To make the world a better place, or to help somebody else out. Got it?

To end this post, you need to understand one more thing.

Whenever you receive any money, who are you going to pay first?

Your mortgage company?

Your utilities?

Your Visa?

NO!!!

You ALWAYS pay yourself first. ALWAYS!

Before you pay anyone else, the very first thing you will do for the rest of your life is pay yourself first!

Once you get used to doing this, you will never miss that money. You will get used to living on the remainder.

There are no exceptions to this rule…..unless you want to lose the money game.

Now what do most people do?

They pay all of their expenses, and if there’s anything left at the end of the month, that’s what they keep for themselves.

But what’s usually left at the end of the month? Nada. Zilch. Nothing.

So let me just say this. If you pay yourself first, you’ll never miss it. If you pay yourself last, you’ll never do it.

Here's another declaration that you should repeat to yourself out loud on a daily basis....

I ALWAYS PAY MYSELF FIRST!

You are either going to win or lose the money game. You can’t hide from it. You can’t pretend that you aren’t playing. It’s up to you to decide if you are playing to win, or playing to lose. It’s just that simple.

Stay tuned, because we’ll be talking about account number 2 in this money management system in the next post.

And once we’re done looking at all the accounts, you will have a blueprint for financial success that will last you the rest of your life.

Namaste.

Jeff