Anke’s previous post: How To Become And How To Be A Network Marketing Family
Money Management – How We Set Positive Causes To Create A Financially Free Future
Aren't they lovely, our jars ?
We made a committment to network marketing because it allows us to build a longterm, reliable and passive income.
You meet the most important prerequisite for longterm, reliable and passive income in network marketing when you make sure that your business has the five pillars to success in place.
Passive income means for us a huge step towards financial freedom and true wealth. A huge step out of the rat race of earning a living by working a job.
I’m just thinking, what do we earn by earning a living ?
Probably a thought worth pondering…
Network marketing is thus our vehicle to financial freedom and true wealth. What else can we do support this process ?
Building a downline is one thing, money management another.
We learned about an interesting system through reading T. Harv Eker‘s book “The secrets of the millionaire mind” and attending his Millionaire Mind Intensive Seminar in Berlin this year.
This system teaches everybody how to manage one’s money today and how to create the foundation to be able to deal with larger amounts of money adequately and fruitfully in the future.
One of his favourite sayings is:”How you do anything is how you do everything.”
What that means is if you are not able to deal with the budget you have today, you are not laying a good foundation to be able to deal with larger budgets. You don’t qualify for a larger budget.
So it’s not about the money amount, it’s about the management of the money you have today, your money habits.
Sounds logical, but who actually practises it ?
It’s not about managing the money in a way you’re not broke at the end of the month. It’s also not about looking if there’s anything left to save at the end of the month.
It’s about creating a golden goose and some other interesting money jars.
What Harv recommends is the following…
There are six money jars:
1st jar for necessities: In this jar you put 55 % of your net income as soon as you get paid.
2nd jar for financial freedom: You put 10 % of your net income into this one to feed your golden goose. These are investments that pay you and children’s children. You never kill the golden goose because it’s your financial legacy. That means you never take money out of your financial freedom account.
3rd jar for longterm saving: You put 10 % of your net income into this account to save for longterm projects such as cars, home, children’s’ education etc. It is supposed to be spent later (other than the financial freedom account)
4th jar for having fun and playing: You put 10 % of your net income into this account. You have to blow that money at the end of the month. You have to…
5th jar for education: You dedicate 10 % of your net income to your education, that means courses and seminars for your personal development and growth. You’re either growing or dying, are you not ?
6th jar for charity: You give at least 5 % of your net income to charity.
I hear your objections:”Yes, but 55 % are not enough to cover my necessary expenses.”, “Blowing 10 % every month ? Who needs that … ?” “What, donating 5 % every month to charity ?” “What golden goose ?” or “And that system is supposed to get us closer to financial freedom ?”
I only can tell you: If you want to learn this exact system, read Harv’s book or attend one of his seminars. Applying his teachings got us a huge step closer to our goals. We don’t carry the money to the bank yet, but we have our jars und train ourselves with a fixed amount every month – and put our change into the financial freedom account at the end of every day.
We already have created fruitful new habits after not even four months. How you do anything is how you do everything…
It’s fun and we love it that it’s so visual !
For me, the most beautiful thing is the following: It’s not about the future, it’s about what we already do today and how we do it.
You can start with it right away. Just do it. And you are doing something good for you today and for your future.
Set positive causes today for a positive tomorrow.
Very important: It’s fun as well (especially when one spouse is a spender and the other a saver) !
Giving and receiving.
Isn’t that marvellous ?
What is your opinion ?
I always love your reaction, so please leave me a comment down below with questions, thoughts, or feedback.
And (yes, here’s my call to action) please share this post with your Twitter and Facebook friends by clicking on the share buttons above.
I appreciate you telling others.
To a prosperous life,
Anke Schmehr-Tausend
+1 201 984 5664 office North America (anytime)
+49 1512 9125216 office Germany & other countries (anytime)
Skype ID: ankeschmehrtausend (anytime)
ankeschmehrtausend@googlemail.com
The golden goose of your MLM business
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Hi Oliver,
Thank you for sharing these simple but very powerful tips. As you know, Jon and I always love to discuss about money management (he’s the expert and I learn so much from him). The illustration and the jar photos you shared made me smile as it sure looks fun! Money management really doesn’t have to be a boring, and ‘painful’ task. I love how you emphasized how you have developed effective and fruitful money habits – this is so key to being successful in achieving positive cashflow; thus building steps towards financial wealth and freedom.
I will definitely show this article to my hubby. I am sure he will love it, and it will also give him inspiration to probably write again for my blog
.
thanks Oliver!
- Rowena
Rowena Bolo recently posted..Be Ready for the Most Powerful Force Against You As an Entrepreneur
[Reply]
Anke Reply:
August 20th, 2011 at 00:34
Hi Rowena,
Thanks for your comment. What did Jon say to this article? Well you know how, Oliver’s the official money expert in our family, but we’re both glad we’re doing together now. Do you know Kim Kiyosaki’s book “Rich Woman”? Very inspiring and eye – opening.
Happy that I was able to make you smile. I prefer the fun way to learn and grow and it’s so neat.
Take care,
see you again,
Anke
[Reply]
Twitter: marcus_baker
says:
Hi Anke,
Wonderful to read a post from you again!
Money management is like all energy management, essential if we want to show the Universe that we can handle more and unless we can no more will come, which is why I particularly loved your line,
“…if you are not able to deal with the budget you have today, you are not laying a good foundation to be able to deal with larger budgets. You don’t qualify for a larger budget.”
I love the 6 money jar system that you are using too. It’s a very concrete and as you say visual way to learn some very significant money management skills.
What is also great about how you are doing this is that you can share in the learning as a family which means you are giving not only yourselves a great education but setting your children up for financial success too.
It’s never about how much money we make and always about how we manage what we have both in thought and practice.
Thank you for sharing this valuable lesson with us Anke.
~Marcus
Marcus Baker recently posted..Movers and Shakers | July 2011
[Reply]
Anke Reply:
August 20th, 2011 at 00:24
Hi Marcus,
Thanks for your kind comment. We have established a leaner jar-system for our kids just recently and they love it. I like your analogy of money management being energy management. We can manage our money with low or high energy. The choice is ours and the results will be accordingly – low energy or high energy.
Money is energy, is it not?
Take care,
Anke
[Reply]
Twitter: JymTarrant
says:
Anke – great to see you here.
I love this system and concept. It makes so much sense.
Without attaching the positive and inspirational dimension to financial management it becomes a headache and tends to become a drag.
Using the approach you shared here brings a whole different energy into money management.
I also love the inclusion of a ‘give’ jar – a powerful way to remind us that our wealth is not only for ourselves and our personal, private goals and satisfaction…
Thanks for posting this! – Must be time for me to get more focused on my money management again!
Jym recently posted..Blogger’s Alchemy July 2011 Review and Thanks
[Reply]
Anke Reply:
August 20th, 2011 at 00:16
Hi Jym,
Thanks for your appreciative comment. You’re right it was a drag before and now it’s fun. Especially putting the change into the financial freedom jar every night.
Every single one of these jars is equally important. Balance is king.
Take care,
Anke
[Reply]
Great post Oliver. Really well summarized clear information that is practical to implement. I really like the giving jar. I am not there yet but know how rewarding it can be when we give regularly.
Thanks for sharing!
Simon
Simon Kessler recently posted..Don’t EVER Quit!!
[Reply]
Anke Reply:
August 20th, 2011 at 00:10
Hi Simon,
Thanks your initial comment on our blog. Yes the giving jar is a wonderful thing, but I also enjoy the fun jar
– for the child in me.
Come back soon and take care,
Anke
[Reply]
Hi Anke, great to hear from you again!
This is a very interesting idea, particularly when you are a visual person as I am.
I have to admit, I am quite a decent money manager, but I never thought of keeping it home instead of putting it in the bank!!
I do know from past experience when saving for vacations, we used to ensure we put a certain amount into a jar each month, as well as contribute our ‘spare’ change on an almost daily basis. It sure was fun ‘watching’ it grow.
I really enjoyed this post and can see the merit in managing your money this way. Definitely food for thought.
I am pleased you got so much from your seminar. I can remember when you went and sensed you felt it was time well spent!
See you soon
Jayne
Jayne Kopp recently posted..My 4 Year Anniversary as a Work at Home Mom!
[Reply]
Anke Reply:
August 20th, 2011 at 00:07
Hi Jayne,
Thanks for your comment. Great to hear that you are a good money manager! Formerly it was Oliver’s business but he was honest enough to admit that he needs help here. So we ‘re doing it together now. Well, we just opened two new bank accounts for long-term-savings and financial freedom. But we still keep the jars for the change, because we don’t want to give up the visualization
Take care,
see you again,
Anke
[Reply]
Twitter: ilkaflood
says:
Hi Oliver,
Oh what a wonderful reminder! I did something similar with jars after reading “The 5 Lessons A Millionaire Taught Me About Life and Wealth” by Richard Paul Evans. The key is, sticking to it. Unfortunately I got off track by life happenings.
But your article serves as a great reminder. This really works and to see your money visually growing in the jars is a great incentive. But…as I already said…you have to keep it up and stick to it.
Thanks to you now, I will start that up again!
Blessings,
Ilka
Ilka Flood recently posted..The Enlightened Networker – Top Commentator Award Winners for July
[Reply]
Ilka Flood
Twitter: ilkaflood
Reply:
August 4th, 2011 at 23:33
Oops! Sorry Anke! Just realized that it was actually YOU who wrote this awesome post. Guess I need to pay more attention to the signature at the end. (Egg on my face again, haha.)
[Reply]
Anke Reply:
August 19th, 2011 at 23:57
Ilka, no worries
[Reply]
Anke Reply:
August 19th, 2011 at 23:57
Hi Ilka,
Thanks for your comment. I love to be your reminder
I sometimes wonder if “life happenings” get us off track or if the resistance of our old habits creates these “life happenings” to get us off track – I’m just thinking…
Our mind is very conservative. What do you think?
Take care,
Anke
[Reply]
Twitter: janetcallaway
says:
Anke, aloha. Welcome back! It’s so good to see you here again.
Anke, I firmly believe that if more people read/watched/listened to T. Harv Eker, they would be in a much better position financially.
By that I don’t just mean how much actual money they have; rather, I mean their attitude towards money. With the right attitude towards money, the abundance will manifest.
Be they jars or different accounts, I do believe it is ever so much easier if money is allocated into the different accounts. If people know they have 10% to splurge, they are much more apt to stick with the program. The money to charity is, in my opinion, a necessity for many reasons.
While success stories are replete with people who gave away their last dollars and then good fortune, at long last, came their way, that is not the only reason. When we give to others, we set up a cascade of good. No matter how limited our budget, there is always someone more in need of that $5, $20 or $100 than are we.
Anke, it is so terrific that you and Oliver attend these seminars together and then implement the new practices as partners. How much better it is that you are both on the same page and came to an agreement to follow the advice on it.
Look forward to hearing from you again soon, Anke. Until then, aloha. Jnaet
Janet recently posted..Thank You by Janet Callaway | The Natural Networker
[Reply]
Anke Reply:
August 19th, 2011 at 23:51
Janet aloha,
Thanks for your thoughtful comment. It’s a real blessing that we’re doing this seminars together. We know couples where one spouse pulls into one direction and the other in the opposite direction. This is a bumpy ride and takes a lot of energy away from the goal. I can tell you from experience because we were there.
When couples argue about money issues they ‘re not arguing about money but about their attitudes towards money that are clashing against each other. A classical conflict is that between spenders and savers. That’s why I second you on what you note about attitude, because our attitudes form our habits. And our habits either make us or break us. What do you think?
See you soon
Take care,
Anke
[Reply]
This is a very cool tip. I got this also from harv eker and this is very effective. The key to this is to FORM a habit about money and once you got it.. it is very hard to break.
Ian Valeza recently posted..The Dangers Of Attraction Marketing.
[Reply]
Anke Reply:
August 19th, 2011 at 23:36
Hi Ian,
thanks for your comment. Yes, it’s all about favourable habits instead of unfavourable ones.
Take care,
Anke
[Reply]
Very true said and I like it very much.
No matter how much we are earnings but if we don’t know how to manage our earnings then at the end we have ZERO with us or in may be huge DEBT.
As this is very common universal issues and this the only reason responsible for increasing debts around the world.
As you have shared very important tips with perfect % concern to managing money. I believe in this strictly and going to add your tips in my strategy.
As one wise man says that “Savings is our best friend”.
Thanks a lot for this highly important post.
[Reply]
Anke Reply:
August 19th, 2011 at 23:33
Hi Megan,
thanks for your comment and you’re most welcome. Glad that I was able to help you enhance your money strategy.
You’re right that it’s not about how much we make, but how much we keep.
Take care,
Anke
[Reply]
Twitter: Mazzastick
says:
I tell many people that more money is not going to solve your financial problems. It’s basic money management that works here. If we aren’t willing to take $10 out of $100 then we aren’t going to take $10,000 out of 100k.
Justin | Mazzastick recently posted..How To Be Perfectly You
[Reply]
Anke Reply:
August 19th, 2011 at 23:30
Hi Justin,
thanks for your comment. I totally agree. Our mentor Tom ‘Big Al’ Schreiter says that you need to become a hundred-aire first, then a thousand-aire etc. before you can become a millionaire
How many people neglect this simple truth?
Take care,
Anke
[Reply]
Twitter: start_networkin
says:
“…it’s about what we already do today and how we do it.”
You said it all. True enjoyment comes from how we do things on a daily basis.
We should avoid thinking that enjoyment comes from a destination. Rather, I like to think that I get the most enjoyment out of my life by the journey itself.
Brock Blohm recently posted..How To Be Rich By Making Money Online
[Reply]
Anke Reply:
August 19th, 2011 at 23:26
Hi Brock,
thanks for your comment. You’re right on: It’s about the journey and not the destination.
Take care,
Anke
[Reply]
He’s changed charity from 10% to 5%? When I read the book, it was 50% for expenses, and 10% for charity. I’ve seen other systems, and I think that each has its merits. Another one that I really liked was the one by David Bach, where you have at least three baskets in addition to regular expenses (investment, savings/long-term spending, charity). He also has a special one for people trying to get out of debt, but either way, I think that a balanced plan is a great approach.
Steve Nicholas recently posted..Success on Your Own Terms
[Reply]
Anke Reply:
August 19th, 2011 at 23:23
Hi Steve,
thanks for your comment. There is no wrong or right. Being balanced is key and of course persistence. You can even replace giving to charity by volunteering that means giving your time. You can create several longterm saving accounts, one of them for getting out of debt. It’s important to create the habit of managing money and not only paying off debt.
Take care,
Anke
[Reply]
Hi Natasha,
thanks for your comment. The fun jar is for the inner child, because it would rebel otherwise. Let us know how the book works out for you!
Cheers, Anke
[Reply]