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Have you ever been given a sum of money or received a raise and later thought where did that money go? If that is you, watch this video and learn why your money is playing Houdini.
Most people desire to be financial free, though that phrase hides itself in words such as wealth, debt free, I want to live comfortable and sometimes even happiness. But a common misconception is the thought that you have to make more money in order to obtain and be these desires.
In school we are taught and prepared for every obstacle that life throws our way as long as that obstacle deals with art history, the Pythagorean theory or the molecular make up of carbon monoxide. But, when was the last time that you factored in this information to make a real world decision?
The financial game of life is taught at home yet, most of us do not know that we should be studying for the test that life is going to quiz us on everyday of our lives. So for those who have never studied money management lets begin.
Do not get hung up on how much money you make. Actually, there is great wealth in small incomes but most never realize this potential because they do not properly manage the money that they do make. Or as the Bibles clearly states in Proverbs, There is much food in the tillage of the poor, but there is want for lack of judgment.
The amount of money you bring in has little to do with creating wealth (at first). In wealth creation the amount of money that you make is not important, the amount that you keep is. Use the amount that you are now making to practice and form the correct habits.
Harv Eker created a system of budgeting that I believe is the best one out there. According to his system when you receive your paycheck you split your money into six different areas. These areas are 50% Living Expenses, 10% Give, 10% Education, 10% Financial Freedom Account, 10% Long Term Saving for Spending, and 10% for Play. The living expenses cover items such as groceries, gas, rent/mortgage, utilities and the like. Give would be the tithe for the church, or other non-profit organization. Education is so that you will have money set aside to help you learn better strategies on how to invest your finances and to increase your knowledge, which is the most important of all investments. Financial Freedom Account is only to be spent on residual income, or money that makes you money without you having to work for it. These last two are the fun ones. The Long Term Savings for Spending is giving you license to save up for the flat screen television that you wanted, or the motorcycle you have always dreamed about. And the Play Account is so that you can go out to eat, go to the movies, get your nails done and do other activities that make you feel like you are wealthy.
To answer other questions such as: How do I find my budgeting percentages in my current lifestyle? What if I cannot afford to give away 10% or how can I implement this budgeting plan in my life, visit my blog on stevenroddy.com under money management to learn more? And as always please rate this video and leave a comment so I know if you find this information helpful.
I wish you great success as you turn your purpose into profit and until next time, I am Steven Roddy, this is Monday Money Live and together we are moving forward.
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