As a founder of Australian Success Academy, I often asked; “How we can improve our relationship with money?”
So I will be sharing with you one of the big turning points in our lives for our financial health – it is called the Success Money System.
What the Success Money System is? What is the step by step process and how to get started?
The Success Money System
Step 1 – If you run your own business, then you need to allocate a percentage for Tax. (Speak to Your Accountant)
If you run your own business, the initial thing to do is determine the sort of percentage you want to set aside for tax. You can speak to your accountant and talk about that matters. Get that accurate as possible.
When it comes to money and budgeting, always err on the side of caution, you can overstate the tax allocation and overstate your expenses. It is always better to be surprised by having extra money in your bank account rather than being surprised and find out that it’s going to cost you more than you expected. Speak to your accountant and find out exactly what that percentage should be.
Step 2 – Set up eleven personal bank accounts that you can transfer allocated funds for specific purposes.
Find a financial institution, a bank where you can set up eleven separate personal bank accounts. Then, start to allocate funds into each bank account just like a money jar system. Your eleven bank accounts can be named as a Business Tax Account, Personal Tax Account, Necessities, Connection, Play Security, Growth, Education, Long-Term Savings, Spending, and Health.
Step 3 – Every dollar you earn should be distributed based upon %s into various accounts. These accounts are then used for a specific purpose in addressing core human needs such as connection, fun, certainty, growth, contribution, abundance, and health.
Make sure that every dollar you earn should be distributed based on the particular percentage into the various accounts.
Connection Account – These accounts are used for specific purposes that are going to address the main drivers behind your life. Make sure that you are using your wealth and you are using your financial resources for you to be satisfied across many aspects of your life such as how to connect with people. These things that you want to do and enjoy time with loved ones, friends and family members and so you want to connect with them. So that the connection account is set aside for that.
Fun account. The fun account or the play account is what you use the money. Use that particular money for what you want to do. It doesn’t make sense to anyone. It can be buying some random widget that everyone thinks, a complete waste of money but you just want to do it. So whatever you want to do, that’s just going to be almost like that self –centered, sort of selfish approach like, Yup, I just want to buy this for me and whether it makes sense to you or anyone else it doesn’t matter.
Security account – The security account gives you certainty. It gives you the reassurance that no matter what happens, you have got an amount of money that is sitting there. A security account is generally something you just do not touch. It’s almost like your own sort of nest egg that you are creating.
Growth account is where you will actively try to grow your money, you want to try to invest that money in probably riskier investments whether it be to invest in a business, to start your own business, to invest in speculative investments on the stock market or whatever you feel that is an opportunity for you to multiply that amount of money.
Give Account – This allows you to give back to other people so whether it be to buy gifts for people or to donate money.
Education Account – That is for your growth, for you to grow in particular ways and for you to learn things. Education does require an investment of time and money. Set aside that money so you can take advantage of those opportunities when they do present themselves. Then you have your long-term savings to spend which is you saving money a bit longer term for a holiday, for a car, for a house, for whatever it is, you are actually going to spend money back on later on.
Health Account – This is for you to keep fit, to keep healthy, to have that vitality and energy. It is going to require money and so these are the accounts that you set up and you work out what percentage you want to allocate.
See the yellow cells in the spreadsheet:
You can change these cells, they add all up to 100%. But it’s really about you working at how much you want to allocate for each account of each area of life. It’s really about you how you playing with the figures and you working out what is the most for your direction in life and the area of your life that you want to grow or improve or on focus on the most.
Step 4 – Decide on the appropriate distribution % that works for you and your situation
The percentages can be changed in the yellow cells and should balance to 100% located under the Wage/Income heading.
Step 5 – Each Pay Period the Revenue you generate is entered into the next available row. The cells in BLUE are automatically populated from the Revenue cell.
Each pay period, no matter how often you get paid whether it be fortnightly, monthly, weekly or maybe sporadically, each time you get paid, you then pay yourself and the government first like there’s a personal tax. It’s like when the money comes into you, the first person that gets paid is generally the government. Your personal tax should be the tax that you have in your own life to live and fulfilled an abundant life. This only works if you have the discipline to adhere to it and it doesn’t seem and doesn’t feel like you don’t get that wow factor, like wow this is an amazing look at all the money coming in, to begin with. It relies on the compounding effect. But over time that’s all going to build up, it’s going to build up and accumulate. The power of success money system allows you to know three years from now you’ll look back and you’ll be so grateful that you took action and you are disciplined enough to stay through to this.
Success Money System is important as eating, is important as brushing your teeth, as important as personal hygiene, looking after your partner. It is a necessary part of life and one of the things that you just do not skip because of its value. The Success Money System serves as your guide to help you reach objectives, so grab the opportunity to get the template for FREE! You can also watch and download the full video of the Success Money System.
Go out there. Put this into place for yourself and adhere to it because you will feel a bit of those positive emotions like “Wow, I’m adhering to this”. You will feel quite significant within yourself. There is so much more significance waiting for you once you adhere to this for two years, three years, ten years and you look back and you go WOW – and this is the big turning point.