Saving Tips: Money Management by John Calub

Everyone that has ever worried about the state of their finances has worried about proper money management. Moreover, those individuals that like to keep a watchful eye on their finances also focus on good money management skills. Thus, good money management is a clear issue for anyone that wants to get and keep a firm handle on their personal finances.

Money management is the process of managing money which includes investment, budgeting, banking and taxes. It is also called investment management(source: wikipedia).

Last November 20, 2011 I attended "How To Become A Money Magnet" seminar by Mr. John Calub at SM City Cebu. As I said to my other blog post Inspired by John Calub, he is an inspirational and motivational speaker that overloads you information about success secrets in life. In this seminar that I attended 2 weeks ago, I was amazed by his multi-millionaire mind. He enlightened my mind as well as the participants of the seminar to have a right mindset. Thus, he taught us about the most powerful money management tool in the world. *see below...

Genius Creation Money Management System

Here's how it works. Divide your money between 6 jars and label the jars as follows:

1.) I Always Have Money Account (IAHMA): You will put 1% of your income and you will not withdraw the money you put here for the rest of your life! In addition, put some amount of money (like loose change) in this account daily.

Empowering Belief: "I always have money that I will never need."

2.) Financial Liberation Account (FLA): Set aside 3% of your income and invest it in an instrument that will give you passive income. You will never take out the principal from this account.

    

       Two Types of passive income:

• Investment Income (money working for you) - Time Deposit Account, Treasury Bills, Mutual Funds, Stock Market, Foreign Exchange
• Ongoing Passive Business income (business working for you) - Royalty Income, Real-estate Rental Income, Franchising, Low-labor Businesses, Network Marketing

Empowering Belief: "My money works hard for me and makes more and more money!"

3.) Abundant Spending Account (ASA): Set aside 3% of your income. Decide on the level or amount of money that when reached by this account, you will spend all the money in this account in only ONE day. If the set amount is not reached in one quarter, spend all the money.

Empowering Belief: "Whenever I spend money, more money comes to me."

4.) Yearly Income Account (YIA): Compute what amount of money (bare minimum) you need to last yourself a year. Put 3% of your income in this account with the intention of reaching that total yearly income you targeted.

Empowering Belief: "I always make decisions that are for the highest good of all concerned including myself."

5.) Tithing Account (TA): Always set aside 10% of your income and donate it to the organization or person from where you derive spiritual guidance from.

6.) Giving Account (GA): Set aside 3% of your income for giving to others.

The amount you put in the jars doesn't matter. It's the habit of managing money that's important. So find yourself a few jars and start dividing whatever money that comes in into the jars.

I hope this will help you in managing your money. And that I'm pretty sure that it will work best for you. 

So good luck in your new management system!