Personal money management method: The six envelopesMany have been the attempts I have made to try to manage my money as wisely. I believe that all people in the universe give us the opportunity to change an area of our life, and the first step of that change in consciousness. So one day I became aware that it was a disaster managing the money I received.
Since I understood that I had to make urgent changes in this area, I have not stopped studying and researching the subject. I must confess, that although I have time searching and researching on this subject, it has not been until just five months ago that I have been able to see a little result.
You must take six envelopes, it is difficult for someone to have six active bank accounts at the same time, but if you have them you can also take six accounts. The important thing here is that you can follow these money management methods as I will explain below.
About One: 50% Expenses
The author recommends that in this envelope you can save 50% of your monthly or weekly income and allocate them to all your basic expenses (rent, vehicle, food, and others). This is the amount of money you have to allocate to all your commitments.
About Two: Investment 10%
In this envelope or account, you will place 10% that will be used for investments or specific investments. You must be clear that on the road to prosperity there are no short roads, so you must make sure you do not take this money for anything in the world.
About Three: 10% Savings
At first, I understood that the savings and investment envelope were almost the same and I was really a bit confused. But no, in this envelope of savings you will place another 10% for future eventualities (purchases of a house, a trip, weddings, vehicle and even for any emergency that occurs).
About Four: Education 10%
The best investment you can make is in yourself. So you must allocate 10% of your income to prepare and increase your potential. Ideally, you can invest in more knowledge about personal finance, investments, or any other activity that is related to your personal development. I, for example, am allocating that money to take English and Singing classes.
About Five: Offer 10%
You may be a believer in some faith and have a church or community that you want to help. The author, as well as most of the great investors in the world, recommends donating part of your income to foundations, churches or simply to help other people you see who suffer from a lack. So you must set aside your 10% for this purpose.
About 6: You 10%
Yes, as you read it. This has really changed me completely and has had a transformative effect on my life. T Harv Eker recommends in your book to take 10% of your income and spend it on yourself. Why? We spend our lives working within a system that oppresses us, which tells us that there is no time to enjoy the things we like, the system tells us that there is no money to "waste it on our tastes," so taking this money and spend it on you, you are telling the system and the universe that you are a person capable of enjoying what your hands produce, that you need more money to continue living life and prospering. I started putting aside this money and when you start using it on yourself you really feel like someone else. Travel, buy new clothes, go to an expensive restaurant, whatever. But give yourself a gift.