Being financially free - managing your money
In February we went to a training course about property. The whole idea of one particular part of the course was to talk about Financial Freedom. You are said to be financially free when your Passive Income exceeds your living expenses. In other words, you no longer need to work the conventional 9-5 to live your life the way you want, easily within your means.
One of the suggestions was to manage your income money better, segregating it in this way. Ideally, you should open six bank accounts:
50% goes to the Necessity account. This pays the bills
10% goes to a Giving account (Charities etc.)
10% goes to a Playing account (Basically anything that amuses you)
10% goes into the Financial Freedom account
10% goes into Education (Training etc)
10% goes into Savings.
You are Financially Free when the amount you are putting into your Financial Freedom Account each month exceeds the amount you are paying from your Necessity account.
Does anyone else do anything like this?