Money Management: Systems For Managing Your Personal & Business Finances
I was lucky enough to attend the Millionaire Mind Intensive in London in 2016. There I learned some vital insights into money management, so I’ve prepared some material to share that with you guys.
I’ve also included some advice for how to motivate yourself if you’re struggling to make money online in the first place…
Watch the video below:
The internet, as a resource, has changed my life completely. It’s helped me learn and helped me earn. But how do we Manage the riches that the internet can bring?
Nobody ever taught me how to manage money; not in school and not at home. I really enjoyed the Millionaire Mind Intensive seminar back in 2016, and the lessons still hold true today! These are lessons which I’ve learned and applied in my life, and while there is no right way to manage money, some methods are more effective than others.
Unfortunately, we require money to pay for EVERYTHING, and a lot of people caught in the rat race find themselves with too much month at the end of their money.
What I was taught at this seminar was that your income, whatever it may be – wages, money from your business, whatever – that is 100% of your money. 55% of that should be spent on necessities. Necessities constitute your outlay for your home, food and utilities.
To get an accurate figure for this, you must be honest with yourself about how much of your money you spend on necessities. This really made me think about what I was spending just on the basics as a proportion of what I was earning.
If you break that 55% barrier, that will not allow you to budget for the rest of the things you need to live a comfortable life – and I will go through those things now.
10% of your income should be going into a specific account, an FFA account, which stands for financial freedom account. This is money that you put away with no intention of spending, allowing you to save this money, because over the course of your whole life, this will amount to a huge sum.
Long Term Savings
Another 10% of your money should be earmarked for a long term savings account. This is for your holidays, cars and deposits for houses. This differs from your financial freedom account because these big purchases require preparation, and having savings of this nature stops you from even thinking about dipping into your financial freedom account. This promotes wealth in your life but not at the sacrifice of the things you want to do.
Learning never stops, so 10% of your money should be set aside to better yourself. It’s all well and good being financially stable, but you don’t want to get left behind. I’ve paid for numerous courses that have all helped me grow as a person and paid me back in a huge way in terms of personal growth and progress.
This is 10% of your money to simply invest back in yourself; the best investment you can make. The more you grow, the more you’ve got to give.
One thing that is incredibly important is to have a bit of fun. You work hard for your money, and if you follow this system then you’ve made some very sensible sacrifices. Give yourself a little back and use 10% of your income for the things you really enjoy.
We all know the phrase ‘work hard, play hard’… Well take 10% of your money and play hard. There has been times in my life where my play money has reached 40%, but trust me, 10% is plenty.
After all of this there is 5% remaining. You’ve sorted yourself out with everything you need, so if you can follow the rest of this financial plan, there’s 5% left over for charitable giving. This promotes the abundance in your life.
This is totally easier said than done, but if you can commit to the rest of this plan, 5% for charity will help you really appreciate what you have in your life.
These are all things which I learned at the Millionaire Mind Intensive, applied in my own life and thought were worth sharing with you guys.
Pay Yourself First
When we’re budgeting, our tendencies are to pay other people and organisations before we pay ourselves. However, if you choose to pay yourself first, the whole game changes. You’re rewarding yourself as you deserve. You can pay everyone else after.
I’d love to recommend the app Spendee. This app has helped me take action on organising my finances. The app links to your bank account and automatically gives you clarity on where your money is going.
Aside from apps, automating your finances with standing orders has been a game changer for me. Keeping track of your money is your cornerstone as a business person.
How to Make More Money
Obviously you only have a certain amount of money, so I’ve prepared some tips to share with you, to help you make more out of the internet.
There will be times when trying to earn more money seems futile, but please don’t run out of faith.
Over the last couple of years I’ve learned a lot about money, both how to treat it and how to make it.
We’re exposed to a lot of success stories online, people using Shopify, Amazon, Kindle Publishing – but there are also people struggling to make money online.
I’ve been asked questions by all kind of people who are struggling, and the common theme seems to be that everybody has an excuse as to why it’s not working for them.
The reality is that if you had to, and I mean HAD TO, make money online, you would be able to find it in yourself to do it. If your house was going to get repossessed, you would find the way or make the way. It’s all about grit, confidence and determination.
Back in 2015, when I started my Amazon business, I was thinking nothing other than “I have to make some money”. Before I started my Amazon businesses, I spent a day going around charity shops and found these little porcelain birds. I purchased them for one pound each. They were good quality, they were dated and had a signature. I was thinking they might be worth some money.
I went home with these birds, I listed them on eBay and I sold one of the birds within 24 hours for eight pounds. That affected my mindset about purchasing low and selling high immediately. This whole idea of online retail seemed so much more realistic.
This is just one example of what can be achieved if you just put yourself out there. Selling on Amazon is not entirely different to the process I described with the porcelain birds. All you need is a phone and some time to spend going around shops looking for bargains.
One of the best ways to maximise your money management potential is obviously to earn more money. This sounds condescending, and maybe a few years ago I wouldn’t have believed it, but here’s some advice that had really worked for me…
I’ve prepared some videos on the different ways I have found effective for making money online. Below is an introduction to affiliate marketing, personal branding, information products, Amazon FBA and coaching and consulting. There is something out there for everyone, so take a look and give it some real thought.
Multiple streams of income are an important thing to look into. I’ve made some videos to show you everything you need to know about my top five online business models. I have a vested interest in all of these and hopefully you can take my knowledge and decide what is best for you!
Affiliate marketing is a great way to generate passive income. It can fit into a business you already run, or can be the basis for a new business or new content which you wish to create…
There are some products and services which I’ve tried that really, so there’s no shamelessness in marketing these, and it’s just a bonus if I make a little something on the side!
Personal branding is a big part of what I’m doing. It’s all about putting yourself out there and providing massive value, which hopefully will pay off for you!
For me, the idea of supporting other people online is fulfilling and rewarding. This is my mission in life!
Information products are another great way of generating passive income. I personally love consuming information online and there’s no reason you can’t add to the mountain of information products out there and provide real value. This is an advanced income stream, but it might just be for you!
Times are changing and where you once needed a deal with a production company to make videos and DVDs, now you just need some knowledge to share and a computer. The sky is the limit!
Amazon FBA has been a wonderful tool for me. I started with 50 pounds and my business has snowballed from there. It can cost a little more to get started, but the rewards and endless. There are three different methods within Amazon FBA, so take a look and see what’s best for you!
Amazon is an incredibly intricate but well rounded tool for you to use to make money online. Don’t sleep on it. Amazon may not be around forever, so let’s make the most of it while we can!
Coaching and Consulting
Coaching and consulting has a very low start up cost, but with that said, you need to provide massive value to keep people coming back. If you’ve made a success of something and have some value to share, there’s no reason you can’t be a successful coach or consultant.
Coaching fits into my personal dream of providing support to other people and imparting my knowledge. All of the coaching and consulting work I’ve had has cost me nothing in terms of start up costs; it’s all been off the back of my own personal success. What a great way of capitalising on your hard work up to this point.
What is Right for You?
That is a lot of information to take in, no doubt. But hopefully you have a clearer idea of what you can do to generate more income from home, passively and actively. Money management is made so much easier when you simply have more money, and hopefully now that doesn’t seem like such a tall order.
If you’re looking for further advice on business models, check out my blog on making your online business sustainable long term!
Has this helped you with money management or changed your money mindset? Let me know in the comments and keep taking massive action! 🙂
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