So if your fixed costs are $ 1000 per month, you have an emergency fund of $ 6000. If your fixed costs are $ 2500 per month, then you have an emergency fund of $ 15000.
The Different Jars:
Make really different pots! You need an iron discipline to really keep this up.
- 55% for essentials: rent / mortgage, groceries, gas, water and electricity
- 10% long-term savings -> fill your emergency fund first
- 10% for education and training
- 10% for your financial freedom
- 10% to do fun things
- 5% donate
You often think that because of this potty system you have to give up your freedom, but this system gives you freedom! Start doing this today. The Evergreen wealth management is perfect in this case. But Is the Evergreen Wealth Formula a scam? No chance!
If you do not yet have an emergency fund, you will use the long-term savings pot to fill your emergency fund. This is really a priority! As soon as your emergency fund is full, you can also use the long-term savings fund to invest in your financial freedom. That depends on what you like and how motivated you are to build up your capital.
Questions For Your Money Management System
- What do you dream of and how much money do you need from this?
- How much income do you need per month to live?
- What kind of emergency fund do you feel safe with?
Money Management As An Entrepreneur
Building wealth as an entrepreneur is very important. I probably don’t need to explain that to you. You probably know that too well yourself. As an entrepreneur you must of course arrange your own pension and it is important that you have a plan when you become incapacitated for work. Take control and arrange your shit.
Consider These Questions:
- How do you arrange your pension?
- How do you ensure income if you cannot work for a while?
- How do you ensure that you don’t have to work an hourly bill?
- What are your fixed costs per month?
So really arrange your shit as an entrepreneur.
Time To Invest
There are several strategies for this. The most important thing is that you develop your own strategy. Two things are very important for this. Spread out and stick to your plan. So don’t let yourself be guided by emotions. Personally, I am very enthusiastic about Index funds through the option. What is an index fund: this is a lot of different stocks.
Why Is Investing So Valuable?
Okay, and now I’ll explain it a little easier. It’s the interest on interest effect. Because you receive interest every time on the money you invest, you will see that in the long term you will receive more and more interest, which ultimately increases your capital. You just need perseverance for this. Because in the beginning it doesn’t feel fast enough.