7 Specific ways of allocating funds to achieve long-term wealth

Ask the average person what the money management means to them and the usual answer will be in line with "Pay all accounts in time and try to save everything that's left." – Not very inspiring, it did not sound too fun, huh? Here is a simple way to change the way you look and treat money. An effective and practical way to manage and track your finances and get out of debt, which is also fun and if it happens consistently … long-term rewards will be extraordinary.

Below are 7 ways you should distribute your money. – If possible, set up 7 separate bank accounts for each specific use, otherwise 7 containers, boxes or any feasible containers will work just as well to get you started. Make sure you do it regularly, which you must maintain, ie, daily, weekly or monthly.

1. Investment:

Add 10% of your money to the investment only. Use these funds only to purchase your investment. These investments should either create the existing "residual income" or appreciation / growth of capital, ie Sell for profit. Once you have enough money / capital, buy the investment and then start building until you have enough money for the next and repeat the cycle. This is by far your most important fund because it will ultimately work to achieve your financial freedom / independence.

2. Long-term Savings:

5% of your money should be allocated to buying "one-off" such as cars, clothing, home accessories, home improvement, home entertainment. This should also be used for stays abroad / long stays.

3. Long-term expenses:

Another 5% should be allocated to all ongoing small debts, usually credit cards or small personal loans. Requirements:

This is your primary cost of living, so 55% will be allocated to it; (19659002) 5: Education:

10% of your money is to be allocated to your ongoing funding. study of financial intelligence and personal development. This is very important because you can never stop learning and improving yourself. This would include; Books, DVDs / CDs, seminars, workshops, required travel and accommodation expenses, training materials and so on …

6: Fun:

This is another important fund. Life, as you know, is too short, and if you are constantly curing or rewarding, it can feel very tedious and very boring. – 10% of your money goes here, and at the end of each week / month / quarter you have to set the batch for the treatment of your choice, eg your favorite restaurant, theater, spa treatment. – You are limited only by your creativity … The idea is that you are really enjoying yourself and you acknowledge that you have earmarked the money directly for it and you do not feel guilty about it!

7: Charity: [19659002] Wealth is to be shared, 5% is directed toward giving back to those who are more needed. You can either regularly contribute or save and stand up for the great charity / cause of your donation. – The more you return, the more you get …

Please do not assume you need a lot of money to get started because you do not … You can start with very small amounts, importance is a habit. Even with a small amount, the law of composition will slowly grow into something essential. Teach your children from a very early age and just look at how quickly their financial intelligence will grow as well as their wealth!