Do Not save what is left after spending, but spend what is left after saving(Warren Buffet)
Three Important Accounts To Have For An Epic Life.
In this blog post, I will share with you the three accounts that have added so much joy and freedom to my life. They are:
1. Savings to Invest Account
2. Contribution Account
3. Vacation Account
It is important to have a separate account specifically to use to invest and create passive income. As well as having a contribution account so that you can always be looking for ways to give. I will share my experience in how I built my Airbnb with my Savings to Invest Account and how I help a young girl with her schooling with my Contribution Account. My Vacation Account has allowed me to go to 63 countries! The outcome is to learn how to dream big and make big things happen bit by bit. To Give, Give, Give. We are happiest when we are giving, and taking vacations can save your life, so save for them. You will learn that there is no other option other than paying yourself first and how doing so consistently will set you on a course to financial freedom.
So there are a few bank accounts that you should open. In my humble opinion, five in total. You should have your savings account, which is your "nugget," your six months Sanity Nugget, you should have your "debt destroyer" account, which you use to pay off your debt, (see blog "Everything must be made as simple as possible. But Not Simpler") and your "savings to invest" account.
Your "savings to invest" account is for, when you pay yourself first. You put 10%- 30% or more away into your "savings to invest" every pay period. It’s the first thing you do. If you don't have your Sanity Nugget, then you're going to work towards that nugget until you have your six months, then once that's done, you can put it in your "savings to invest" account. The "Savings To Invest" account is to invest in something that is hopefully going to bring you passive income. Passive income is money that comes in without you having to work hourly to get it.
Every week when I got paid I had 30% automatically put into my Savings to Invest Account. It grew and grew until one day I had $30,000 in there. This is how I built my parent’s house and how I built the Airbnb above them. So when I was thinking about moving my parents to Mexico, I knew they needed to have something to do because they're young. They're doers, and it was their dream to have an Airbnb. So I ended up building a beautiful two-bedroom apartment above them that is now Airbnb that they host and manage.
So I use that account, to brick by brick, build my Airbnb, that not only pays me but creates income for my parents, and also for my brother who helps me run it. So we're all benefiting because I put 30% of my income away. I'm telling you if I can do it, so can you. It's just being organized and knowing where your money is going. The next account you're going to want to have is a Contribution Account. Make a separate bank account for contributions. We are all connected, and we can help and contribute to this planet and the people in it. I put 10% away every pay period into my contribution account. That builds so that when a need arises, I can know whether I can help that person or not, or meet that need or not.
What I've been able to do, which has made me so happy and brought me so much joy is, I've been able to help a young girl with her private schooling. Here in Mexico, the public schools are not great and they don't learn English. English can be the difference between a good job and a shitty job. I've been able to pay for her private school for years now. She's top of her class, and she's doing amazing. I get to be part of that, it brings me so much joy. The only reason I've been able to do that consistently is because I have an account that I send money to so that I can do these things.
The next bank account I suggest you open is a "Vacation Account". I always know which is the next vacation, and even the next two vacations, and how much they're going to cost. So I know how much to put in there in order to make that vacation work.
This is the difference between feeling guilty about going on vacation or buying that pair of jeans or not. I can't tell you enough how amazing it is. But it only works. If you stick to the system. You can't half do it. If you're half doing it, you're not doing it. And then here's the most beautiful thing with all these different bank accounts, they are collectively a group of savings accounts. So if shit really, really really hits the fan, you can collect from all these different accounts to take care of whatever it is that you need. And your emergency doesn't have to become everyone else's emergency in your life. Because who's responsible? You are responsible? I am responsible. My emergency shouldn't be everyone else's emergency. Is it a blessing to help and support people at times? Yes, we all are human. And we all catch ourselves in situations where we need help. But let's minimize how much we are leaning on, and needing other people. Be free!
How you can learn from me…
1. Savings to Invest Account
The importance of this step is to have a separate account specifically to use to invest and create passive income.
I do this step by sharing how I built the Airbnb with this account.
To start…
A. After Sanity Savings Nugget is full for 6 months or more, put this 10 % or more in the Savings to Invest Account
The first step is to know that once you have a 6-month Sanity Bucket saved, then you can use the 10% or more that you have been putting in there and instead start a new account called your Investment to Spend Account. Even if you aren’t ready to fill it yet because you are still filling up your Sanity Nugget Account, open it so that you are ready for when that day comes. When I had an employer I had them take off the 10% automatically and send it directly to my Investment To Spend Account. If you can go to the bank now and open it, then do so, if not schedule a time to get the account opened.
B. Use this for bigger investments like real estate, trips around the world, Airbnb, etc.
Use this Investment to Spend account, for bigger investments like real estate. When you continuously feed this account, eventually you will have enough for a downpayment on a home, or second home, or investment home, etc. I used the money in this account to build my parent’s house, my Aunts house, and an Airbnb. Think right now for a few minutes on what you might want to do with the money you save up in your Investment to Spend account. Ask Your higher self, “What would be wise for me to do with this money once I save enough?” Write down whatever comes to mind. This will take 3-5 min to complete
C: Best if the investments create passive income for you.
You want to make sure that what you spend this money on is best used on investments that create passive income for you. I receive rent from my Aunt and income from an Airbnb rental. Think about how much passive income you could receive from the idea you had in Step 2. If the answer is none to little, then I suggest you rethink what you could do with that money, so that instead you can create passive income. My basic needs are now covered because of the passive income I created, that first began as an idea, just like you are now. It’s amazing!!! Step by step Baby!
The outcome of this step is to dream big and make big things happen bit by bit.
2. Contribution Account
The importance of this step is to always be looking for ways to give.
I do this step by sharing the story of how I help a young girl with her schooling, women get into shelters, tutoring, etc.
Here’s what you want to do…
A. Put 5 - 10% of any dollar that comes in, into this account
Another account to open is your contribution account. I would have a separate account just for contributions or if you are using the amazing program YNAB that keeps track of all your spending you could add it in there. The point here is to have a contribution account. The point is to be contributing in some way to someone else in need. I suggest you put at least 5 - 10% of every dollar that comes into your Contribution Account. One of the ways I have contributed for years now has been by helping pay for a wonderful young girl’s private education. It has given me great joy over the years to be able to do this and to see her shine and thrive. Ask your higher self, “Am I contributing to someone in need right now?” Or “Who could I be contributing to?” Write down whatever comes to you. Decide right now if from now on you will set aside a certain percentage to contribute to someone in need. I hope you do! The joy and what comes back around is magical.
B. Look for opportunities to help in a consistent manner.
For step two, I want you to look for opportunities to help in a consistent manner. Like with me, paying monthly for an education. Having consistency keeps you consistent and it also allows you to watch the fruit of your contribution. For example, I get to enjoy watching this young girl grow up and get to see her top-of-the-class awards and report cards. It’s fun to see what your gift is doing presently and continuously. Ask yourself, “How could I help someone or some organization in a consistent manner?” This will take 3-5 min to complete.
C. If someone needs help you can check your account and happily help
Step 3 is to make sure that whatever you give consistently is less in total than what you put away a month so that there is still money building in your contribution account. That way If someone needs help, you can check your account and happily help, as long as the funds are there. It’s so fun to be able to do. So ask yourself, “ Do I put away more that I give consistently so that I have even more to give later if needed?” Decide what you want to do here and get organized so that in the future you have more to give. This will take 3-5 min.
The outcome of this step is to Give Give Give. We are happiest when we are giving.
3. Vacation Account
The importance of this step is to Save so you can go.
I do this step by sharing how I've been to 63 countries and how most of them have happened because I saved for them.
Here’s how you do it…
A. Put a percentage of every dollar that comes in after your needs are taken care of for vacation.
Because I know vacations are super important to our physical, mental, and emotional health, I put a percentage of every dollar that comes in after my needs are taken care of for vacation. I suggest you do the same. Decide after your needs are met, how much you have leftover, then decide what percentage of the leftover you want to go into the vacation account. I have been to 63 countries and my kids have been to over 20 countries because I do this. It works. I’m so thankful for all the memories I have, and all the places and people I’ve met along the way. All because I put a certain percentage of money away after my needs are met to have some fun, adventure, and rest if need be. Now I want you to breathe deep into the lungs. Make sure it’s through your nose, hold for 5 seconds, and exhale through your mouth making the sound “ahhhhhhhhhhhhhhh”. Exhale for as long as you can to release any stale air. After at least three deep breaths, ask your higher self, “Source in you“, What percentage after my needs are taken care of, should I put away for vacation?” Write down your answer. Then put things in place to make that happen. This will take 3-5 min to complete.
B. Know where you are headed and when
The second step is to know where you are headed on vacation next. For me, I know that the next place I’m going to is Thailand. I love Thailand and I’m going back with an amazing group of friends to one of my favorite places on earth. I’m excited. What are you excited about? Where do you want to go that makes you smile to think about? Ask Your higher self right now, “ Where do I want to go on vacation next?” Write down whatever comes to mind. If you have multiple ideas, pick your favorite. That is the next place in your sites! This will take 3-5 min to complete.
C. Go guilt free and enjoy!
The third step is to actually go on that vacation once you have saved up for it! Go, have fun, Go guilt-free. You are allowed to have fun, you are allowed to experience all you can experience. You have taken care of your needs and responsibilities, so go have fun spending what you saved to enjoy spending!!! This will take as long as your vacation takes.
Taking vacations can save your life so save for them.
When you follow and implement these steps you will have the Three Important Accounts Needed For An Epic Life. They are:
1. Savings to Invest Account
2. Contribution Account
3. Vacation Account
It is important to have a separate account specifically to use to invest and create passive income. As well as having a contribution account so that you can always be looking for ways to give. Like in my experience in how I built my Airbnb with my Savings to Invest Account and how I help a young girl with her schooling with my Contribution Account. My Vacation Account has allowed me to go to 63 countries! The outcome is to learn how to dream big and make big things happen bit by bit and that we are happiest when we are giving. Vacations can save your life, so save for them. You will learn that there is no other option other than paying yourself first and how doing so consistently will set you on a course to financial freedom.
Your Action Steps: Are to implement the steps above, and come back and let us know what your results are!
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