A super practical and hassle-free way to save money, use "six accounts" to allocate expenses!

Is your consumption planned?

I came into contact with "Six Accounts" because of a best-selling book - Hafu. "Rich People Think Differently from You" by T. Harv Eker. I have never been a fan of stimulating financial management books, but the "six accounts" shared in this book really won my heart.

Although my life has always been simple, it is inevitable that I still buy a lot of unnecessary things inadvertently. When I was young, I went to drugstores. Every time I walked out, I spent thousands of dollars on many bottles of skin care products, but none of them would be used up in the end. Online shopping has become popular in the past few years, especially when people are quiet at night, swiping through their mobile phones, and waking up in the morning to regain their senses only to realize that they bought a lot of things last night. In addition to wasting money and time, it also wastes space in your home to store these things.

Later, after reading this book, I started to plan my consumption. The basic concept of "six accounts" is to allocate monthly income into six accounts. The money in the special account can only be used for exclusive purposes and cannot be "overdrafted". What's more special is: "must spend it" Finished! "While taking into account the quality of life, you can also prepare for long-term planning. What's even better is to achieve a balance in your life: no guilt when it's time to enjoy, no complaining when it's time to save money, because every expense is accounted for. within the allocated amount. Everyone should have six accounts

What are the "six accounts"? Let’s briefly review:

Financial Freedom Account (10%):

No matter how much money you receive, always save 10% of it first "Financial Freedom Account". The money in the "Financial Freedom Account" can only be used to buy investments that can earn "passive income" or make money grow. Moreover, all profits must continue to be retained in this account and cannot be used! Some people use it to invest in stocks, funds, real estate, or even U.S. stock options? I know several leaders in almost all investment fields. No matter what tool it is, as long as you study hard and have discipline, you can definitely accumulate sand into a tower. .

Taking me as an example, the money in my "Financial Freedom Account" is only used to buy a house for rent, and the monthly rental income continues to be deposited in this special account. Just like the landlord's aunt said: "If you can make money, you must also be able to save it!" All investors who "use money to make money" can expand because they continue to keep their profits in the "Financial Freedom Account" Invest your own principal and accelerate your investment profits!

Long-term savings account (10%):

In addition to saving 10% of your income into the "Financial Freedom Account", you should also remember to save 10% of your income into the "Long-term Savings Account" account". Notice! "Long-term savings account" and "Financial Freedom Account" are different: "Financial Freedom Account" is for "using money to make money", while "Long-term Savings Account" is for preparing in advance for "future required expenditures". For example: children's education funds, self-prepared funds for buying a home, parents' pensions, etc. are all suitable for "long-term savings accounts".

If you often collect red envelopes, or have a fixed premium to pay every year, you can also prepare a proportion every month and make a fixed deposit, so that you will not be in a hurry when you need to spend. Of course, the money in the "long-term savings account" can also be used as a reserved emergency fund!

Education and training account (10%):

The third special account is the "education and training account". Put 10% of your income into the "Education and Training Account". If you have books you want to buy or classes you want to take, you can use the money in this account to invest in yourself! There is a saying: "The most expensive tuition fee is 'ignorance'!" I often say, do you think the tuition fees for real estate courses are expensive? If one ping can save 10,000 yuan, and 30 ping can save 300,000 yuan, do you really think that classes are expensive? Every year I make a budget and find some courses I want to take to further my studies. Not to mention buying books! There are so many books at home that the bookcase, which is 200 cm wide and 237 cm high, cannot fit in two rows at the front and back. Several boxes were given away when we moved. In recent years, I have also prepared a budget and taken classes with my employees! Last year, we took classes on "Game Creation" (designing "courses" into "games" to bring students more interesting and profound experiences and gains!) and "Public Speaking". This year, I arranged "Execution" "Strength" and "Marketing Creativity" courses, bring colleagues in the office to learn together!

Investing in your own brain is always the most worthwhile thing! The increased knowledge and abilities are always doubled back to the results of our work and life, and the return on investment is very high!

Leisure and entertainment account (10%):

Besides the "Financial Freedom Account", this is my favorite account! Put 10% of your income into your "leisure and entertainment account", and then "must spend it!" What I like most is ***, arranging small trips, or buying some beloved little things (flowers for the balcony) , potted plants, covering the balcony with southern pine to create a resting space, shopping for clothes online? etc.). You can spend this money every month, but if you like to travel abroad, you can also accumulate it for a season or six months and spend it again.

The reason why I love it so much is: since I started budgeting for the "Leisure and Entertainment Account", when I use this money to arrange leisure activities, even if it is a little luxury, I feel a little guilty. Neither! What a great state of mind! I know that I have other accounts that perform their duties, so I don’t have to worry about overdrafts at all, and I can fully enjoy the happy experience that this budget brings me!

Last year, I took my children to Tokyo, Hong Kong, Okinawa, and earlier this year I went to Bangkok. Starting from this year, my "Leisure and Entertainment Account" has a new task: "Every summer, I have to choose a country to take my children to stay for a long time! Starting with the Netherlands this summer!" In order to spend money on creating a wonderful life experience, I usually implement the "six accounts" budget allocation, and I do it very willingly!

Contribution and payment account (5%-10%):

Put 5%-10% of your income into the "contribution and payment account". All the money in this account will only Can be used for public welfare purposes. You can donate the money to a charity of concern or use it to help someone in need. I care about the education of young people, so I make a regular donation every month to a foundation that assists in the shelter and education of teenagers aged 12-18 years old, to do my part for society. Recently, I have paid attention to another volunteer team that has been dedicated to repairing houses for disadvantaged groups since its establishment in 1999 - "Taiwan Treasure Island Charity Volunteer Group". All royalties from this book will be donated to this group.

Living Expense Account (50%-55%):