Being financially free - managing your money

Last Update: December 12, 2018

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?

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lesabre Premium
I think it is a great idea. I am past due in setting up my financial budget. Thanks for sharing
Nancy29 Premium
I have three separate accounts. Looks like I need to break up my savings account into a couple of different categories. Thanks for sharing.
dkohara Premium
I think as long as you can segregate in some way, it will work.
Hollshope Premium
Six bank accounts? Makes sense though. I'm saving this for future reference. Thanks!
dkohara Premium
I have an account that allows me to set up six ‘pots’. It works that way too.
JonLake Premium
Absolutely yes. We both went to a T Harv Eker Millionaire Mindset weekend earlier this year. It was incredible. We learned about the system you highlight above and it has made a massive difference to our finances.
ExpatMark Premium
Eker's books are great.
JerryMcCoy Premium
Not at that point yet, but soon.