Wealth and Money Management Principles

Wealth and Money Management Principles

Being wealthy carries a responsibility. The enlightened millionaire is one who gives back to his community, who recognizes that he is part of a society that provided the means for him to become wealthy. By giving back you are strengthening your community which in turn will support you even more. This principle of mutual support allows everyone to grow wealthy together. Who are you financially assisting this week?

Who are you investing in to assist them to become wealthier? The more you move money through your hands to help others, the more responsibility you show yourself worthy of.

Do you have your list of needs where your money will be going? And don't forget the 10% right off the top, first, to charity. This shows a belief in the system, and that you are not in love with the money or overly attached to it. If you can't do this, it may be hard to make and keep large amounts of income and income producing assets.

One of the most difficult wealth principles is that you grow in wealth faster, by giving away so much that it seems like it would make getting ahead slower.

But it does matter where you give it. Give to charity, then invest in others who will work with you. Invest in your personal growth and financial education, then save some; then live off the rest. When there is some left after this to play with or buy a better car with or nicer things then do them. But not until the others are taken care of. The last shall be first.

Hmmm! Now doesn't this begin to make sense in a living practical way?

So the more you want to have extra for your fun, the more you will be motivated to make. And we do what we want most. So the more you want, the more you will help others. This is what prevents greed; putting yourself last.

Consider that most of those with lots of money usually aren't greedy and give lots away.

Strangely, those who only have little, think that a person must be greedy to have lots of wealth. Often it is those with less who seem to think most about money and love it because they don't have enough. So they are often the ones more consumed with greed and self preservation than are those with wealth.

That kind thinking doesn't fit with abundance and wealth. The wealthy don't need to be greedy because they have plenty. They are often more concerned about helping others since they have plenty.

So which really is practicing their spiritual beliefs?

Surprise, Surprise? No wonder things aren't working as well as most people would like. And all this time they thought they were the good ones, right? Maybe they need to admit this and see their greed, fear of loss and risk. We love money so much that we won't give much away or invest in other people or our even own further education.

Well, one day I saw this and began to trust instead of hoard, and things changed for me. I didn't want to do it but it turned out just as the wealth mentors had been teaching. It's like the high dive. Everyone says come on jump you will be fine. We all did it; its fun! But the longer you stand there and wait the scarier it gets and you can't really see how this is fun. And it isn't fun until you let go and jump. Then you can't wait to do it again or go higher.

So, do you really believe this?

If you are not spending your money this way, it is because you don't believe this.

When all the wealthy people are saying the same thing in trainings and tapes, that this is the fastest way to wealth, ask yourself why do you not believe them?

And how is it working out for you trying to do it the way you have been doing it; waiting until you get ahead to do these things? Why not just do this and see? You have tried everything else you are willing to do. Do what you have been unwilling to do. That must be where the answer is found.

Budget your income and set it aside each month in this fashion. If you won't believe enough to match the suggested % for each category in the beginning, then at least put some % into each category. Why not do that? You may not have enough to do something great like buy businesses or buy passive income opportunities with now, but let it build up until you do. This shows that you are being responsible with a little and then maybe much will be given to you. But if you won't do it with a little then why would you think you would be trusted with much?

So, start now. Set some aside into each category a part of every check received and don't use it for anything else, no matter what.

*Manage it as if it were not your money to use in any other fashion. Manage it as if you were managing it for somebody else; you are just the financial manager to get it to someone in each of those categories. Learn to be a great money manager then it's more likely that you will obtain more to manage since you are proven to be responsible with money. How will you learn to plan and manage money if you wait until you have a lot? That is the deception of those who win the lottery. They don't manage what they have so when they win the lottery 75-85 % of them are bankrupt in 3 years. They may have fun for 3 years but they end up worse financially than they were before they won. One man won two different multi million-dollar lotteries and still went bankrupt.

It doesn't work to wait. Do it daily or weekly. Keep track of the amounts in each category and watch them grow until they are large enough to be used to do something in that category. Even put change or pocket-cash in small jars for each category until there is enough to use or take to the bank. This sets a great example for your children. Get them doing it too. You may make mistakes and some poor investments, poor vacations, poor gifts so what. It is all part of learning. But take it seriously.

Savings accounts are free. So set up several, one for each category so you never spend what doesn't belong to that category. Don't say, I will keep just track. Have you been? Then it doesn't work. So why resist?

Why would the wealthy tell you to do something that is not necessary? You think they did it another way and now they are just telling you some program that sounds good in order to make them look good? No they finally had to switch to this system too. All solid businesses run on planned forecasted budgets and goals and saving for investing in more income production. The wealthy found this is what works best, that is why they are sharing with you so that you can join with them in helping others instead of being one they still have to help.

See? They want you to be wealthy; there is no competition. They have learned that there is abundance and plenty of money. Do you think that for you to get lots of money someone else has to get less? That is not how the wealthy think. Money circulates. One passes it to another who passes it to another. You may save some until you can buy an income-producing asset, then it passes on. In fact the wealthy selfishly want you wealthy too so that they have others helping them do all the great things that can and need to be done and to help the truly needy. Also so we have someone to go to the movies with during the week, and so that we can go on vacations together while others are stuck in a job. So you can afford to have great times like we can. We want our friends free too.

Anyone who wants more money can obtain greater amounts. If you have the mental capacity to do something as simple as inventing a pet rock you can make millions and I am sure all of you have that much going on for you.

A great principle is to not spend on luxuries until your passive income can pay for them. Let the nest egg grow as fast as possible until it can purchase high yield investments and then your money works for you instead of you working for money. Unless you want to be working 40 hours a week until you are old, you need to utilize leverage. Let the money earn money for you. Work just to make enough money so that the money can work. Then you have Financial Freedom and time freedom. Do not purchase high priced items. Purchase income-producing assets that can pay for the expenses. Wouldn't it make sense if you want an $80,000 car or a boat or a condo, to save up enough to buy a passive income business that produces enough to make the payments on the car or boat? So each time you want something, you buy an asset to pay for it rather than buying the expense.

So just do what the wealthy teach rather than like a mule, resisting, not even knowing why you are resisting, just resisting because that is the way you have always done it. If that way has not been serving you as well as you like, I encourage you to try another way for a while. At least free yourself from the slavery and bondage you are in. Yes, you think you are free? No I say you are a slave. You cannot even do it this way. You have to resist because you have no choice. Your are controlled. Prove me wrong and choose to do it this way for a year or two? If you won't then you prove that you are still a slave to some stuck blind spot in your mind and don't even have the freedom to choose to do this.

But of course the trap is that if you do begin doing this you will be free.

Cultivate friends who are learning more about prosperity and managing their money. Invest in courses on wealth and money management and find out where to invest for the most. You have to pay to learn valuable information. A $50 course will probably not teach you how to make a passive $100,000 a year or a month; or how to get 35% or more return on your investment in a reliable way that works. You have to do what the wealthy do to become wealthy. Invest in yourself.

A wise person follows closely to those who are successful. A fool has many friends to converse with that make him feel like he belongs.

To be responsible with a little will enable a person to develop the skill and wisdom to be responsible with much. It doesn't work to say, "I will manage it when I get it." How has that been working for you? Why not try this proven system for developing the discipline one needs to be responsible with large incomes.

Budgeting Specific Categories

Each time you get income, put what you need to for taxes into an savings account, if more than enough is not taken out of your income ahead of time. Call this account Savings for Taxes. You can keep this amount much lower by having a business or some passive income assets so that many of your current expenses become tax deductible. This is wise use of the benefits offered.

With the rest consider giving 10% of the first fruits of income for charities or God's service through your church and other ministries and servicies. Some prefer to give 10% of the before tax amount.

Once these are complete, with the rest:

1. Put 10% to a Long Term Investment and Financial Freedom account

You never touch the principle in this nest egg account except to buy income-producing assets, high yield investments or to buy passive income opportunities. These could be coin ops, rental property, vending machines, interest bearing accounts, buying mortgages or making business loans with interest, or starting a business. In MLM you may invest in your associates as income producing assets to you by paying for them to go to a meeting or take a leadership course or buying them literature to advertise with or buying these things for their downlines; anything that produces income.

All the interest and profit go back into this account until the nest egg has enough assets where the interest or profits pay all your monthly living expenses. As the principle grows so does your income. Once you are able to pay all your expenses from the income this nest egg produces, you can quit your job and become a money manager. Careful though, putting money into an IRA means you can't take it out and buy an income-producing asset with it or develop a business without a % penalty. So you may not want to put all 10% of this account into an IRA or deferred account especially if it has a relatively fixed rate of return well below other possible passive income opportunities or businesses.

2. Put the next 10-15% into Medium Term Savings Accounts for Specific Items like a car, major house repairs or improvements, unexpected necessities, college or weddings, vacations, debt elimination and other major projects or special items that the family agrees upon and can share a common vision to save toward. Even extra giving to friends or the needy or special offerings can come from here. Create a separate savings account for each large item if you want or keep track of how much is going toward each specific item on a budget or planner. You can switch money between accounts within the same category but not between categories.

3. Put 5-10% into an education fund to learn how to make more, manage and invest money, personal development courses and MLM meetings.

4. Also make sure you pay both partners some small equal % to use for fun, recreation and to reward yourself with so that you are less tempted to go blow some unknown amount out of the main accounts. Set a % like 2 1/2% each and keep it the same every month until you can give yourselves a raise. This may be special clothes or perfume, or some special desert, a massage or an evening or weekend outing.

5. Then pay your regular monthly expenses with the rest maybe 60-50%. This is a necessities account; food mortgage or rent, gas, car repairs, utilities, clothing, toiletries, school and work expenses, tires, hair care, gym fees, necessary tools, paint, basic upkeep and household repairs and cleaning. Learn to live within your means. Simply your life or generate more income. I can't understand why people feel they should have a new car or an expensive car or fancy new clothes regularly when they are barely getting by. They have put nothing toward an income-producing asset so that they do not have to work 40 hours a week their whole lives retiring on 40% of what was too little when they were working. Don't they understand inflation and taxes are going to continue going up? Why not spend less now and get financially free then have the luxuries for the rest of your life rather than struggle, not get ahead and be un-prepared for old age.

Eventually as your income producing assets and investments increase your income, a smaller % will need to be put into necessities and more can go into the other accounts. See how this will snowball faster and faster as you become free. More goes into the Freedom Investment account so more income can be purchased or developed.

You must not swap funds around. They must stay in each account or you ruin the whole point of this budget and self-discipline. You will not prepare yourself to be one who is strong enough to handle and wisely manage wealth. You need to manage the money in a method like this, which is proven to work. If you haven't done this in the past, don’t fool yourself into thinking you don't have to do this now to get ahead. Stick to this and separate the money into savings accounts so you never fail. Even have labeled jars at home for some of the accounts to put change into and any extra money so that you can watch it grow then deposit it in its account.

And have the children split their money into these kinds of accounts for themselves too. Help them learn money management now with their money.

You may say, "but I have so little income now that I can't put these percentages of income into each account." Then seriously take whatever amount you can and start splitting it up by these percentages and putting it into these accounts. And as you manage your money you will see this begin to work. I know a woman who could only split one dollar up into these categories and the next month she did two. Within 2 years she was able one month to deposit $10,000 into her Long Term Investment Account. You will attract what you focus on. What you want and pay attention to you will succeed at. Ask God to grant you grace to wisely and with self-control manage your income for Him. If you ever have an interest in making more than slave wages or a fixed income or becoming a financially free person, then do what the wise and wealthy do. And seek to use your talents to earn all that you can with them serving others with the best you are able.

So here it is again; after taxes with your money invest:

1. 10% to Charity, or Religious ministry.

2. 10% to a Long Term Savings for Income producing assets only account; nest-egg.

3. 10% to Medium term Savings for specific Goals.

4. 5-10% to your own Education, Personal Development and Income courses.

5. A significant percent like 5% to for free spending no questions asked. Play fund.

6. And the Necessities account with the rest, which will eventually decrease below 55 % as your income goes up even if you increase your lifestyle gradually too, as long as you don't exceed the income growth.

If you are one of the few who learns this and gain control over money, then you may be one who God chooses to use to channel money through to do great works. At least you will have secure finances, be safe with wealth and not brought under the control of it or love it.

Now regardless of how much or how little goes into each account each paycheck, work with diligence and perseverance and be unstoppable in your altruistic pursuit of helping others to be successful. For this truly is your work. This is what will provide your success, the selfless pursuit of helping and serving others to be free and successful.

This is why you can confidently approach others because you are sincerely out for their best not just yours. You must help them to have success in order for you to have success. You are sincerely there to support them in becoming free to have hope, a meaningful purpose, to have goals and to dream again!

And this is what we get paid for. Freeing people from bondage. Making people Kings of their own lives. The greatest business in the world.

We all get what we want most. Do you really only want what you want now?

Or aren't there some good things you could be doing if you were one of the people with more wealth and the freedom? The responsible part is:

The choice really is yours!

I really do appreciate all of you regardless what choices you make and where you are in your process or path, because you are really helping others and my family. I just want to support you to have all you can have and be all you can be. And I hold you accountable for that. But I respect you no matter what you do today. I know it is scary. I was stuck there watching and wondering for a long time and am not too far ahead. It's still scary. So come on lets go together and encourage each other. I need you! I need you to be as great as you are meant to be. Each time another person joins with us it is so great. We want you at the top. Won't you come fly with us!