Money and Medusa

        Today I will be going over a couple of tools and techniques I use in my personal life to make the most of my money/income. But before we go into any of the techniques or tools I want to go over something very important. None of these strategies will work or happen if you aren't organized or committed. The strategies, are not difficult but they do require that you be organized and committed. As we go through the strategies you will see why organization is critical so I won't talk much about that right now. But I will briefly discuss commitment. For those things to happen and work you need to be committed and that means you need to dedicate time and energy to these things, you cant expect them to happen by themselves or anything like that.

        Okay so here is the first technique. After each paycheck, or however you get paid, what you will do is set aside a percentage of that check or money. And it has to be a percentage, it can't be a fixed dollar amount. For example, paycheck comes out to $100, what I am going to do is save 40%=$40 of that paycheck, and put it into my savings. The rest you can use for rent and gas and all that other good stuff. This is just an example though, depending on your situation this number may be lower. The goal however is 40%. That's where you wanna be. Thats how much money millionaires and billionaires set aside on average. If you have to start at 10% then work your way up thats great, just make sure that you are working toward the 40%. So as soon as you get your check, multiply is by your percentage and put that money into your savings account. I will write another article on what to do with this money, for now just know that its gonna be invested in your dreams.

        Okay so now that we have a set percentage of money that you must put into your savings, what you are going to do is calculate home much of your check goes to basic needs. Now that I'm thinking about this, you are going to have to do this first. Do this first and then decide on a savings percentage. Calculate how much money goes to your basic need, let's say its 40%. Okay so that leaves 60%. You can do 40% for savings, and then the last 20% you can use as your personal spending money. That was actually going to be the next step but i just went ahead and threw it in there. If you want to split your check into different chunks, you can. If you want to be more specific that works as well. The point of all this is to have your money in accounts that have a purpose as opposed to having all your money in one account/one card. If you have 1,000 on a card and you don't have a savings or another checking account, i promise you, you will run through that $1,000 really quick. If you had a savings account, a checking for your basic needs, a checking for your personal stuff, this money would last a lot longer and you will feel less overwhelmed/out of control. 

        The goal here, really is to organize the money into accounts with a purpose that way you know what to use that money for, what not to use it for, what you can use, what you can't use, how much you can use and so on. I have 2 checking accounts and a savings account.

So let's say I get a $100 Check.

$40 Savings 

$40 Basic Need checking 

$20 Personal Spending checking

        So now that this money is in these accounts, you have barriers, you have freedoms, and they balance themselves out; there's control. This is all great news because you don't want mystery or chaos when it comes to your money. You know you can't spend your savings on junk. You know you can't spend the whole $100 because you have to pay my basic needs. And you also know that you CAN spend the $20 on whatever I want.

Hopefully this helps. I was going to go over some other tips but for now I feel like this should be enough. 

-Enrique the Great