e enjte, 17 janar 2008

Millioner Mindset by Cindy Tee inspired by T Harv Eker

Dear Friends,

I am a fan of Harv Eker, and as most of you know, I believe in
continuous learning and growing...

This is something that Harv teaches, and I wanted to share it with you,
if you don't know it already.. A very simple system to manage money :)

T. Harv Eker emphasized that wealthy people aren’t any smarter, they
just have better money management habits. The most important part of
money managing is separating your income into different accounts for
specific purposes. Harv recommended that you have 6 separate accounts.
He calls it the 6 money jars.
1. Financial Freedom Account (FFA)
2. Long Term Savings For Spending (LTSS)
3. Education Account (EDUC)
4. Necessities Account (NEC)
5. Play Account
6. Give Account

Once your paycheck is cleared, immediately transfer your money to the
different accounts. Harv calls it the World’s Easiest & Most Effective
Money Management System. The percentage of money to be distributed are
as follows:

10% FFA
10% LTSS
10% EDUC
55% NEC
10% PLAY
5% GIVE

FFA
You should never, ever, ever spend your FFA capital. The idea is to
create a golden goose or passive income with your FFA. Only when you
stop working you get to spend the egg (but never the goose).

LTSS Account
The LTSS account is used for savings for down payment for a house, a
car, education for kids, major vacation.

EDUCATION Account
The Education account is used for your own education and not for your
children. It is important to continuously learning and growing. Your
money can only grow as much as you grow.

“If you are not growing, you are dying”.

NECESSITY Account
Obviously the necessity account is to pay for your daily expenses
including bils, mortgage or rent, car payment, food, necessary clothing
etc. If you can’t live on 55% of your income, simplify your life.
Everything is a choice. You don’t have to drive a new car every 3
years. You don’t have to live in a huge house and you don’t have to
have the latest new gadget to hit town. Make wise choices when it comes
to your money. Wealthy people think long term and poor people think
short term. Practice delayed gratification instead of instant
gratification. It will be well worth it when you achieve financial
freedom.

PLAY Account
The objective of the Play Account is to nurture your inner child by
having fun and being outrageous. It can be used for entertainment,
getaways, toys. Even if you do not have much to begin with you can
still have fun with a little money. For instance you can buy a bubble
gum and be a kid again or you can get one of those soap bubble fun and
have a blast blowing bubbles. The only rule with your Play Account is
that you must spend your Play Account monthly or at least quarterly.

GIVE Account
Money from the Give account is to be given away to anyone or any
organization that would benefit from your help. If you choose to give
more than 5% take the extra from your NEC Account. For example if you
would like to give 10%, take the extra 5% from the NEC Account and
change NEC to 50%.

Your money can be kept in separate jars or separate bank and investment
accounts.

Take note that “It’s not when I have plenty of money. I’ll begin to
manage it.”It’s when I begin to manage it, I’ll have plenty of
money.”The Universal Principle of Management says “Until you show you
can handle what you’ve got, you won’t get any more.” The habit is more
important than the amount. It does not matter if you start out with
only a dollar.

It is important that you always pay yourself first.

Wealth Rule # 1:Pay yourself first (your FFA).

Broke people use the leftover strategy; they pay everyone first, then
save or invest what’s leftover. If you follow this route it will be
almost impossible to achieve financial freedom.
The law of attraction states that Like attracts like; money attracts
money.
The FFA acts like a money magnet. Where attention goes, energy flows
and result goes.

To accelerate the process affirm to yourself out loud daily:
“I am a money magnet. Money comes to me easily and continuously!”

You are on the way to financial freedom if you follow this easy money
management system!

Try it out and let me know how it goes!

Make 2008 your BEST year ever!

Cheers,
Cindy