Let’s be real — one of the toughest aspects of finances is figuring out how to handle it effectively.
In the video above, I’ll reveal the specific techniques that I, along with thousands of my students, employed to gain control over money and achieve financial independence. If you’re interested in learning more, keep reading.
Your Financial Achievements Depend Significantly On Your Money Management Skills
The key distinguishing factor between financial success and financial struggles is the way you handle your money.
Mastering how to manage your finances is what grants you financial independence — and with that independence comes the capacity to spend your time as you wish, rather than being compelled to work solely to make ends meet.
Many of us aspire to attain financial independence — that moment when we no longer have to stress about paying the bills or making rent, when all our essential needs are met.
However, financial independence can only be achieved when there’s sufficient money left over to save for whatever we wish, whether that’s eliminating debt, leisure activities, or an extended vacation. Ultimately, that’s what we’re all striving for.
Everyone I’ve ever spoken with wishes to be financially independent. I’ve yet to meet anyone who doesn’t yearn for that. But financial independence isn’t achievable unless you excel at managing your finances using essential strategies to guide you toward financial independence and wealth-building over the long term.
To effectively manage your finances, continue reading to uncover several important principles to consider…
1. If You Can Manage A Small Amount Of Money, You Can Manage A Larger Sum
No matter where I find myself globally, whenever I discuss finances, I consistently encounter the same question: “Harv, I don’t possess much money, in fact, I don’t have any surplus, so how do I manage it?”
To respond to that inquiry, I present a straightforward analogy:
Picture that you have a specific sum of money and you visit the grocery store weekly. Let’s say you spend $200 at the grocery store on your weekly groceries. When you return home at noon, you decide to have lunch. Are you going to consume all of the food at once? Certainly, you’re not going to eat everything in one sitting — you purchased it for the entire week! Instead, you’ll manage it so that it lasts you for the whole week. Yes or yes?
The same concept applies to your finances:
You must manage your finances and ensure they are well handled so that they last.
Here’s the deal, regardless of how much income you’re bringing in, you need to manage it. And here’s the reason:
We are creatures of habit.
If you’re not in the practice of managing your finances, when you begin receiving MORE money, guess what will occur? You still won’t manage your finances. Everything will vanish, leaving you to ponder why you can’t seem to succeed financially — let alone become wealthy!
So even if your income is $1, it’s crucial to learn how to manage that $1. If you can do that, you will reinforce the habit of financial management.
In my Millionaire Mind Intensive course, and in a section of my book, “Secrets of the Millionaire Mind“, I teach an extremely effective method for money management — specifically designed to lead you toward financial independence.
It’s called the JARS money management system.
Essentially, with this system, you divide your money into six distinct accounts, allocating percentages of your income to each account. You can utilize bank accounts or actual jars to distribute any income you receive into these jars (or accounts) based on these percentages as a reference.
Here’s a FREE worksheet that will assist you in determining how much of your income to allocate to the 6 jars.
<pIn conclusion:
As you pursue financial independence, it’s essential to cultivate the habit of managing your money.
Effective money management is the cornerstone of financial success, whether you’re just getting started or you’re a