The 2 types of Passive Income:
i. Investment Income
ii. Ongoing Passive Business Income
2. Practice the Money Jars - the world's simplest, easiest and most effective money management system.
Jar 1, 10% - Financial Freedom Account (FFA)
Jar 2, 10% - Long Term Saving for Spending (LTSS)
Jar 3, 10% - Education (Edu)
Jar 4, 55% - Necessity (Nec)
Jar 5, 10% - Play
Jar 6, 5% - Give
FFA is your Golden Goose! Never ever spend this! This is used only for investments and to purchase or build passive business income. If you really, really have too, you get to use the eggs but never the goose.
A daily deposit should be made on top of the 10% you set aside for your FFA. This is to create the habit of saving money, to create your ‘money magnet’ and also to increase your financial freedom funds.
LTSS is used to save up for big purchases like family vacations, buying a house, car, big screen TV, paying down debt, children's education and contingency fund (3%). You can save for 2 separate things. In this case set aside another jar.
The Edu jar is for your OWN education and personal development. This is essential for your personal growth if you really want success in life. Use the money here to buy books, audios, DVDs, trainings, seminars, retreats and courses that stimulate your growth personally and business/investment wise. This is life changing education for Financial Freedom.
Nec is your necessities jar. Your expenditures like paying your utility bills, mortgage/rental, food, clothing, fuel, gym membership, grocery and sundry shopping come from this account.
The Play jar stands for just that - PLAY! The purpose of this jar is to reward and celebrate your successes and nurture your inner child within. Do things you never do. Have fun with this! Go to an exclusive restaurant that you would never think of setting foot in. Go for a great holiday. Treat yourself to an exclusive day at a posh spa and just pamper yourself. Take a helicopter ride. What have you always wanted to indulge in? I'll leave it up to your imagination...
The rule here is that you have to SPEND your play account monthly or at max, 3 months if you've conjured something really fabulous for yourself like chartering a private yacht to the Maldives ;-)
The last and final jar is the give jar. Give to your church, temple, charity, disaster victims, etc. Practice your social responsibility here. It is said, "It is in the giving that we receive. And the more you give , the more you'll receive."
~If you tithe (10%) the additional 5% is taken from your Nec jar.
*If you have to pay your own taxes, put tax money (20%) aside first - your seventh jar.
~The percentages shown are only a guideline. Make necessary adjustments on your part.
**The habit is more important than the amount!
3. Create your success journal
Recognize, acknowledge and Celebrate your successes. Write at least 5 successes daily.
Your success journal is a way for you to go out and look for your next days successes. So you'll have something to write about. This is a success forming habit.
4. Act in spite of F.E.A.R. - Tame the cobra of FEAR
Oh! Ya! F.E.A.R is an acronym for False Emotion Appearing Real.
5. Last but certainly not least... My daily actions. Success is habitual. So, I do my wealth conditioning exercises daily which include my Wealth affirmations, my VAKS, my daily deposits into my FFA, my success journal and taking action on my goals.
When you mind is comfortable and used to success, success becomes your path of least resistance!
Want to know about VAKS and how to get FREE tix to the next Millionaire Mind Intensive in Singapore this November? Contact me :)
