Managing your money is the first step in wealth creation and it is the beginning of the financial planning process that will take you there. The 21st Century Academy uses a strategy called strategic spending it involves being aware of your spending and operating your personal finance as if you were a business. You must make a profit when you earn in other words you must save some of your money.

A Poor Money Manager

• Spends all their pay immediately
• Must have it now, no matter how it hurts or how much credit they must use
• Has no goals or plans other than to be rich and famous  – ‘one day’
• Follows the crowd and their friends
• Mixes with people who have similar money problems
• Hopes their next pay rise will solve their money problems
• Believes they don’t need advice
• Has no interest in gaining financial knowledge
• Spends on items which lose value, eg cars, stereos etc.

A Good Money Manager

• Saves a minimum of 10% out of every pay
• minimises borrowing for items which depreciate in value
• has definate goals, eg 6-12 months, 5,10 and 20 years
• has a plan that they actually implement
• mixes with people who are successful money managers
• knows that strategic planning is a must
• seeks professional advice and has a wealth coach
• is keen to learn new things and ideas about managing money
• invests in items which gain in value by quality

The idea is to divide your income into small easily controlled bundles, there are four:-

1. Savings – The first bundle to come out of your income is savings, a minimum of 10% of your gross pay. This is transferred to your Cash Management Trust Account at the end of each month. Always do this before any other expenses are paid – if you don’t you will most likely use it for something.
2. Cash Account – This is for your daily living expenses for which you normally pay cash, a bit like your pocket money. These are all non deductible items. Use this account with a access keycard.
3. Operations Account – Use this for the bills that come in monthly, quarterly or yearly. Do not link it to your cash account. You can use it with a credit card if your expenses are larger that the budgeted amount. Then the following month you can pay back the credit card.
4. Cash Management Trust – This is where your savings go plus enough funds to cover any tax deductible expenses for easier tax records.

The system is linked by a transfer account which recieves your pay and transfers to each of the other accounts on the 15th of each month. Maintain a small float in the Cash Account and Operations Account. The main aim is to accumulate as much as possible in the Cash management Trust and use these funds wisely to create wealth.

The earlier or younger you get started on this program the greater will be your success.

Power Thought

My success begins with me.

Tell yourself this often.

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Reference

Jamie McIntyre: 21st Century Academy Home Study program

Photo

Michelle Meiklejohn:

http://www.freedigitalphotos.net/images/view_photog.php?photogid=901

Widowed at forty eight, I wasn’t destitute but with a young daughter, a mortgage and low skills I knew I had to do something. Working as a waitress or cleaner wasn’t going to pay the mortgage and give me time to look after my daughter, I had to find a New Way to Work. So like most people these days I turned to the internet. I googled, home businesses and making money online, it took some time but I sifted my way through many, many possibilities looking for some that would work for me.

I knew if I was going to make it work I would have to enjoy what I was doing so I decided to consider something I loved to do and I also wanted to learn some new skills. I found a few opportunities that I have since taken up and all are working well, I can do them around my daughters schedule, from home or away and they are completely flexible.

My love of writing led me to freelance writing opportunities through Elance, I have also learned to earn an income by writing blogs through the Year of the Affiliate (YOTA) program and am building an online wealth homestudy business with the support of 21^st Century Academy. Oh, and I almost forgot I also have an online store with ebay. It has taken some time and effort but I have been able to build multiple streams of income all online and from the comfort of home.

How much time I spend on each of these is up to me, as little or as much as I like but like any other business time, effort, persistence and consistency equals reward. Still, it is a lot less and a lot easier than your usual 40 hour plus work week in the traditional workforce.

There are so many good New Way to Work opportunities to be found on the internet but also many that promise much and deliver little so just a few words of warning. Look for businesses or companies like Elance, YOTA, Ebay or 21^st Century Academy that are well known and well established. If you are investing money make sure you know exactly what you’re getting and last but not least time and effort is required so don’t be seduced by get rich quick promises. Unless your lucky enough to win the lotto there’s not much that doesn’t require some time and effort to be achieved. This New Way to Work works for me.

http://australiawealth.com.au/