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MOGR: The Rich Get Richer, The Poor Get Poorer
By Steve | March 23, 2008
I’m afraid this statement is true. So, what should we do about this? This is one of the important mindsets of getting rich. You need to first get enough money into your system; you have to first be financially free; before you can think of getting rich. But how? Have a breakthrough!
How do we get a breakthrough while working for people and getting by from one paycheck to another?
Part-time Entrepreneurship
One of my answers to this problem is to have another income stream - a second income stream that you can work on part-time while still holding that day job. The day job is to provide you with money to pay your bills and the nighttime job should be the income that can grow exponentially one day. This should be your fallback for when you lose your day job, or something you can move on to when it begins to make enough money such that you can commit to it full-time.
What part-time business is good? I suggest Internet Marketing and Multi-level Marketing. Please refer to my old blog posts where I wrote “Part-Time Entrepreneurship-Can This Work?” and “Why Network Marketing is the Ideal Part-Time Business for Today’s Working Class”.
Good Money Management - The Money Jar System
Another way to make a breakthrough is to develop a good money-managing habit. Manage your money in such a way that you are able to pay for all your bills, have a reasonably good lifestyle, and most important of all, save some for investment. I find that T. Harv Eker’s money management system works well. You can also read about this system in his bestselling book, “Secrets of the Millionaire Mind”. Click the image below.
I attended one of these Millionaire Mind Intensive seminars near the end of last year, and this is what I learned. T. Harv’s money management system actually uses physical jars. The jars actually give you a physical system to VISUALISE where you are putting your money, and these will motivate you to put away your extra money for a good cause instead of spending unnecessarily. It forces you to put aside money for what you may consider more important pursuits, such as investments or education. Here are the accounts you are to look at:
Necessity Account. Call it NEC – it is recommended that you devote 55% of your income to this account. This account is meant to pay for your rent, mortgage, utilities, bills, taxes, food, clothes, etc. – literally, anything that you need to live - hence, it uses the term “necessity”.
Financial Freedom Account. This is called the FFA – it is recommended that you devote 10% of your income to this account. This is tantamount to your goose that would lay your golden eggs. The amount that goes into this jar is reserved for investments and for creating your passive income streams. The money here should not be spent. The only time you’re allowed to touch this money is when you consider yourself financially free; but even then, only the returns on your investment should be used, never the principal. Otherwise, you’ll most likely go broke!
Education Account, or EDU. You should put aside about 10% into this account. You should use this money for your education and personal growth, such as for buying books, CDs, seminars, and things that give you educational value. You are your most valuable asset and you need to upgrade yourself. Knowledge gets obsolete and you have to update yourself. Never forget this.
The Long-Term Saving for Spending Account is called the LTSS and you are encouraged to put in 10% of your income here. This could be the savings you want to have to buy a house or to send your kids to a good university. If you manage this well, you will have the money when the need for it arises. A small monthly contribution goes a long way.
Your Play Account is called PLAY, and this gets a 10% share. I like this account, as all work and no play makes me dull. The purpose of this jar is to nurture yourself. You could purchase an expensive holiday with the money here or indulge yourself at a spa.
Finally, we have the Give Account – let’s call it GIVE - and this is where I usually put in 5%. The money in this account is for giving away to charity or some worthwhile cause. You can also give away your time as opposed to giving away money. You’re telling the universe that you have plenty of everything; you’re abundant. Giving indicates abundance and will magnetically attract more abundance to you. The movie, “The Secret” asks us to show gratitude and have a positive mindset of abundance.
Topics: Category99: Steps to Success, Category41: Attitude, Category00: Mindsets of Getting Rich - MOGR |