Do you know how to organise money?
Today I’m going to give you the 5 Golden Rules for organising your money and show you how to set up a money system that allows your money to grow and multiply.
Plus, today’s freebie is a really cool free new resource I’ve created to help you calculate how much money you actually need to bring into your business.
It also helps you work out how to distribute that income so your money really goes to work for you.
See, over the years, I’ve literally sat with hundreds of people who laid out their finances in front of me, and some were really proud of how they were taking care of their money.
And some were totally embarrassed about what they were doing with their money.
They honestly had no idea how to organise money – and were really clueless on what to do with it.
But, to me, it didn’t really matter.
The only thing I cared about is how would I help them achieve what they were looking to achieve – how would I help them achieve their goals?
And, with a few tweaks and some financial education, I’m happy to report that pretty much all of them got there, which is pretty cool, right?
So today I’m going to lay it all out for you.
I’m going to share with you the 5 Golden Rules for managing your money so that it actually grows and multiplies.
Because think about it – for every single dollar that grows and multiplies on its own, that’s less dollars that YOU have to go work for.
So, are you ready? Let’s get into it!
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GOLDEN RULE NUMBER 1:
Okay – the first Golden Rule for managing your money and setting up a money management system that actually allows your money to grow and multiply and that really works is to:
Base it on Reality.
So many people set up budgets and money systems based on nothing but theory They just hope to wing it.
The problem is that just doesn’t work. They have budget blowouts. There’s lots of things they’ve forgotten to allow for. And then they say, “Oh, my money system didn’t work.”
It’s only because they never based it on reality.
So before you set up your money system, look at what you’ve actually been spending, where the money is actually been going, and then use that information as the starting point for setting up your money management system.
GOLDEN RULE NUMBER 2:
Okay – the second Golden Rule for managing your money so it actually works is to:
Always Add Buffers.
Buffers prevent blowouts.
Especially when you’re first getting started, you’re going to forget things.
There’s going to be unexpected expenses, blow outs, things you’ve forgotten about. And if you don’t allow buffers in your money system, then you’re going to say,” Oh, it doesn’t work.”
You know, “I blew the budget”.
But if you allow a really good, healthy buffer – especially in the beginning – then that allows you to keep learning, refining and improving your money system, and the buffer is there to absorb that, to allow for that.
So always add buffers because buffers prevent blowouts.
GOLDEN RULE NUMBER 3:
The third Golden Rule for managing your money so it multiplies is to:
Use the Bucket System.
The bucket system is simply about dividing your money up by different purposes, into different buckets or pools of money.
It means that every dollar has a job to do.
Then you’re really clear on what’s money you NEED to spend versus money you WANT to spend and where it’s all located.
It avoids confusion. It gives you clarity. And it also avoids vibrational wobbles.
GOLDEN RULE NUMBER 4:
The next Golden Rule for managing your money so it multiplies is to:
Make compound interest work for you, not against you.
Now, compound interest is an incredibly powerful effect that allows your money to kind of multiply and grow all on its own. Einstein actually called it the Eighth Wonder of the World.
When you’ve got investments, compound interest is working for you.
And when you’ve got debt, compound interest is working against you.
So you need to change and shift that equation from spiraling downwards into a debt spiral of compound interest and shift it to change upwards into an upward investment and wealth spiral of compound interest.
GOLDEN RULE NUMBER 5:
Now the fifth and final Golden Rule for managing your money so that it multiplies is to:
Know your magic number.
Now, before I explain what that is, I want to share a formula with you.
And this formula is the reason that most people don’t move forward financially. And what they basically do is they say:
Income – Expenses = Savings.
What happens is they take their income, they take off all their expenses, pay all their bills, and then they try to save what’s left.
Now, what do you think happens?
Correct! Not usually a hell of a lot left!
So all you need to do to change things up and to change that into a formula that moves you forward financially and helps you multiply your money and your wealth is to switch it around a little bit and say:
Expenses + Savings + Income
So you need to get really clear on what your real expenses are.
Then you set a target for the savings that you need for growing your wealth.
And that helps you decide what your income needs to be.
And that is your magic number.
Then you now know what that magic number is. You know that level of income is going to help you move forward financially.
That magic number that’s going to help you pay all the bills and achieve your financial goals.
So that 5th golden rule is really, really key.
If you’d like to calculate your magic number, then make sure you grab my free Income Target Calculator. The link is below.
This calculator will help you work out how much you need to bring in to ensure all your bills are being paid and that you’re moving forward to reach your goals.
With that calculator, you also get a bonus calculator to help you distribute your income as it comes in and ensure it’s going to all the right buckets.
It’s perfect for people with fluctuating incomes and you even get a handy video tutorial to go with it!
If you have any questions at all please just type them in the comments for me below.
It’s time for you to embrace your unlimited potential and guess what?
You are absolutely ready to take that next step.
Have an awesome day. Bye for now.
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