money management

This week i decide to post an article of the theory which i learn in the "Secrets Of the Millionaire Mind" from T. Harv Eker. I wrote this with the mind of for a friend who are now aiming to go for Japan . In fact, i just realise that this book , since i read and apply are probably the first book where i actually can see an obvious result that till now i was wondering is it a mere coincidence? And the fact that i could not stop telling my friend to try apply this simple management money everytime i online my msn and also because of the encouragement from my friend who go japan that i decide to write about what really had happen when i got this book and start read it.

I bought this book from a bookshop at the price of not more than 35.00. Since i start read it, and after some first few chapters, and when i understand the part of the reason of why many people including myself had trouble with financial issue is because we are not comfortable to hold the amount we had that we unconsciously blow away my money, My company had just restructure the salary system issue and basically those who continue work there have an increase of allowances ( in other words our salary is slightly increase). I was so shocked in fact thinking is it a mere coincidence?

Because of the first incident happen , that i decide to closely apply this book rules. I was in fact struggling for couple of months only to realise that a mere increase of 10.00 for example can throw me off balance. (wow, i never know i had such a small comfortable range). But once i finally able to really structure my management money, i actually look at the heaven and said "i am ready for more..oo but please don't give me few thousands at one go but few hundreds can". The next few days, my salary was indeed increase (just exactly right to the amount i can emotionally hold).

This book i would say is really really good for anyone who are looking to solve their financial issue as well those who are choosing to free themself and become rich. And because of that i decide to write only the part of the money management issue here in a more specific.

For the income you earned after income tax, try to allocate 20% out.

10% is for your financial freedom account .
- The rule for this account is that you can only use the money you allocate in here to grow your passive income. And you do not get to use it until you are retire. And even when you use it, you never get to spend the principal but only the interest or dividend generate from your principal. This way, your passive income will keep on growing even after you retire.

10% is for your fun account.
- the rule for this account is that you must spend on things that will make you feel rich.So if you feel buying the latest handphone will make you feel you are rich, do it with your fun account money. Others may feel that going to a spa or buying the most latest fashion clothes will get them feel rich. Do it. The purpose of this account is to strengthened your motivation to become rich and also increase your comfortable zone for receiving more money. However, you need to spend all in this account before the end of the each month. I thought growing income was hard, but i never knew that spending all the money in this fun account can be equally hard. I was obviously too enjoy with this that my mind even attempt to convince myself to use all the fun account money to grow more passive income.

The final rule for both of this account is that the same amount you allocate into your financial freedom account, you must also allocate the same amount into your fun account.

If you only had 1 dollar to spare each month, then divide this one dollar half into your financial freedom account and half into fun account. you will start to like it.

Below are the optional account that can be set up.

50% - necessary account (insurance, daily food expenses, groceries and so on)
10% - charity account (the joy of giving is undeniable. i also consider this as an investment for your own soul. in fact it tend to bring out the gentle and bright side within you).
10% - education account (important especially if you want to multiply your income)
10% - long term saving for spending account (for me i also count it as maintenance/emergency account. It is extremely useful especially when your pc suddenly breakdown).

I wish all who come across this artikel will be sucess ,rich and happy beyond your imagination. Now my next issue is finding the right formula to grow my passive income with very little amount. Thanks to T.Harv Eker, i finally for the first time felt as if i had touch "the many lines with many possibilities to become a millionaire".