Money Management


THIS system was derived from T. Harv Eker's money management system that he shared during his seminar which I attended in June 2009 @KL MINES.

I modified it to suit my purposes.
Each month, the active income that I received will be divided as such:

15% into Financial Freedom Fund(FFF)
15% into Long Term Spending Fund
15% into Education Fund
30% into Necessities Fund
15% into Play Fund
10% into Give Fund

Money in the Financial Freedom Fund will never, Never, NEVER ever be spent. It will only be used to acquire assets that generates positive cashflow. The dividends or interests or returns from the investments will be reinvested into the fund until such a time when I have achieved financial independence. After which they may then be channeled else where.

Money in the Long Term Spending Fund is for me to buy or pay for costly things that are important but not urgent. Things like getting my braces, getting a tablet, etc etc.

Money in the Education Fund is for me if I wish to enroll for a course which I believe will aid me in making more money or for me to pursue my passion.

Money in Necessities Fund is for everyday expenses. The reason why I modified it to 30% instead of the 50 to 55% is because I am currently still residing with my parents and there aren't a lot of miscellaneous stuff that I have to pay for. In fact, 30% of my current income could have left overs which will be channeled into the FFF.

Money in the Play Fund is for luxuries that I lavish on me and my girlfriend. It can be a dinner at a classy restaurant or a trip to somewhere fun. Bottom line is, the money in this fund must be expended every month and no guilt must come from spending the money.

Money in the Give Fund is for me to give to my parents. I will give them 5% each.

I have more or less followed this money management plan since the day I learnt about it, just that there wasn't any official records which I should have kept. What I would be doing from now on is to actively record the amount of money in the separate funds and more actively manage my money.

You should do too. This is one big step towards growing your wealth.

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