Learning Something New

(I wrote this post on October 9, 2008)

I have always prided my self of seeking new knowledge especially on how to manage wealth & how to accumulate more wealth responsibly. Yesterday, I learned an interesting and very practical concept on wealth management. It was so simple, it doesn't make sense if you don't apply it.
Yesterday, I attended the Module 1 of www.createabundance2020.com's wealth management course at Starbucks Leviste, Salcedo Village, Makati City. It was a vert simple course, simple yet VERY effective. Effective because 3 hours after it I was applying what I've learned.

What I learned is to divide OR partition my income into its different purposes. For example (this was the example used in the Module):

Table 1: Money Jars

Purpose	Abbreviation	Percentage of Income
Financial Freedom Account	FFA	10%
Necessities*	NEC	55%
Play	Play	10%
Education	Educ	10%
Give*	Give	5%
Long Term Savings	LTSS	10%

* If you want to give 10%, then NEC becomes 50%

I modified this model a bit to suit my needs & circumstances. Here's what I came up:

Table 2: My Money Jars

What I did is deducted 5% from NEC and another 5% from Play and established another LTSS. This means that I now have 2 LTSS accounts: 1 for a new car [mine is sooo old] and the other is for my mother's house (a gift for her from my brother and me).

Now, FFA money is to be used for funding businesses and investments only. As you might have guessed, this fund will help me in creating multiple streams of income for me to achieve my yearly income without so much as breaking a sweat. The other accounts are more or less explanatory [you may always email me for questions: amgaspar20@yahoo.com]
So, this coming Monday [November 13]** I will be opening additional accounts with BPI. One account for each of the above (I already have existing accounts with the bank so NOW I only need 4 more). I believe that having an account for each of the above will SIGNIFICANTLY help me in managing my income and wealth [no matter how small that maybe compared to Bill Gates', but if I can't manage such net worth, how do you think I can when I'm as rich as Croesus?].
So how do I intend to use the percentages presented in Table 2? For example, I just received P11,900 for a work I did. I immediately electronically transferred 10% of it to my LTSS-House account (it was an existing account).
I am so excited. I know this will help me be more disciplined when it comes to managing my income & money. Yay! The world is really wonderful.

**I actually opened the accounts today, November 14.