“Money does not dictate your lifestyle. It’s what you do to get it and how you manage your finances that determines your lifestyle.”
― Wayne Chirisa
The first stepping stone towards the financial freedom is to learn to manage the money you already have. ”How you manage your finances determinates your lifestyle!” says Wayne Chirisa.
The usual way to manage money is to earn it, pay the bills and wait for the next paycheck. If there is any money left, you give it to the bank into the ”retirement” account and think, that you save for yourself. Your lifestyle is how you manage your money. Living from the paycheck to paycheck is the typical lifestyle for most of the people. It is the lifestyle far from the financial freedom!
In the Millionaires Mind Intensive seminar in Berlin, we learned a good way to manage our money and to gain financial freedom. It has worked well for many people! The most important thing to do is to create a money management HABIT!
Stepping Stone 1:
The information that delights me is, that for to be financially free, you do not have to be a millionaire! Determinate what the amount of money you need to get your financial freedom in the current situation. You need to calculate what is the sum you need to pay your present bills and life without credits. The idea is to gain the balance in the current situation. After that, your financial situation automatically increases because you have payed your credits, you have learned to earn more and even get passive incomes!
Stepping Stone 2: Establish The Jar-System
“In times of change, learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.” Eric Hoffer
In the seminar, on the table on the stage, there were seven big jars. Robert Riobel made a fantastic performance and showed us how the jar-system works. The jars are for:
1) Necessities, 50%-55%
2) (1 or more jars) The Long-Term Savings for Spending Account, together 10%
3) The Financial Freedom Account, 10%
4) Education Account, 10%
5) Play Account, 10%
6) Giving Account, 5%-10%
1) In the Necessities-jar
you put the money that you use on the daily basis: rent, electricity, internet payments and necessary clothing, food etc.
2) In the Financial Freedom Account
you put 10% of your money – and KEEP IT THERE. You do not take anything away from this jar unless you INVEST it for to gain more into this jar! You use this account for to increase passive incomes that help you to live without worries when you are older – or even sooner!
3) In the Long Term Saving-jar or several of them
you put the money for to buy a fancy car you do not need, or a big screen TV, or a holiday trip or pay your loans.
is for life’s education. We live in the new world. We MUST learn new things to go on! We must learn new systems how to use the money, how to earn money and how to manage our life. We must educate ourselves. Take courses on the internet and educate yourself. Go to the seminars. Learn new skills that help you go on and up in this world!
is for fun! From this jar, you are supposed to use all the money on a monthly basis. When you want to attract money, be joyful! Joy and fun are forms of gratefulness! Playing and enjoying shows to the Universe, that you deserve more good in your life because you appreciate what you have! That is why it is a good idea to use some amount of your incomes for plain joy. Spend this money for luxurious spa or a family dinner in the restaurant where you do not usually go!
is for charity and contribution to the things you want to support. If you don’t have money, you can give yout TIME! Time is even more valuable than money!
Stepping Stone 3: Find Information
Recommended: Find information about investing, savings and about passive income from the different places, make comparisons and use your common sense! You can find a lot of information on the Internet, YouTube and Facebook. Read what people are telling about their experiences. There must be forums on the Facebook for the particular subject about you want to learn!
Wealthy people also have financial advisers. If possible, get the one. They are not in the bank. You must find someone who works for you, not for the bank!
Jars and Accounts
If you have only a little money, the real jar-system is good. If you have enough incomes, you can establish six or seven accounts in the bank or find other solutions for to put your money in different places, like in investments: gold or silver coins or bars that you can keep home, Bitcoins, stocks – what is the most comfortable way for you!
Stepping Stone 4: You do not have money? – Create a HABIT anyway !
You can start using the system with 1€, or whatever currency you use in your country. Maybe this works also with Bitcoins, who knows? Has anyone tried yet? The amount of money is not essential. The most important thing is to create the money management HABIT. So, you can start it with a little money already. Or, if you do not have money, use peanuts, small stones, or something that is tangible and helps you to create the habit! For example, pick up 100 small rocks daily and share them into the jars. You have formed the habit and are closer to your financial freedom!
After the seminar
Robert Riobel’s visual performance was an effective way to tell the audience how the system works.The audience was thrilled! After the seminar we talked about it on the forums on the social media and in private groups. We sent photos of our jars to each others and proudly announced how we started to be managers of our financial future! The money management, that before was a dull and depressive percentage game on the paper, became real and FUN. After the occasion we created several Mastermind groups in Berlin for to support each others gaining the financial freedom! Now many of us have created the jar-lifestyle to gain the financial freedom we desire so much!
- I found an older presentation about the subject here: https://www.youtube.com/watch?v=VfvA9N9SSB
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