I just learned something very interesting today and honestly, quite unheard of in my own mindset of being very stingy and careful with my money. In my own defense, I'm a strong believer in delayed gratification so I would tend to really scrimp on expenses and hold out on purchasing anything major (clothes, shoes, etc.) for myself until such time I feel that I have "earned" it or when I've already reached a particular financial goal. As such, now I am holding out all expenses in lieu of funneling money to my fledgling business... and rightly so because my current job pays me pocket change and business expenses every month in so far (my receivables have not yet come in) are my salary several times over. It's a big "ouch!" if you must know.
So, when I read the third chapter for Jomar Hilario's e-book, my first reaction was "Hmmm??"
Before I continue with my own reaction, I'll let you judge for yourself. Jomar Hilario quoted T. Harv Eker's book, Secrets of the Millionaire Mind wherein he stated the different categories to which we must plan our spending and allocate our budgets BEFORE we actually spend our hard earned salaries.
All the other categories are pretty self explanatory especially for people who've read any personal finance book or attended any seminar. What came as a surprise to me was item #6. Play.
According to Hilario, "Play" pertains to 10% of your income that you're REQUIRED to spend on "the finer things in life," as he puts it, may it be that Louis Vuitton bag, Tag Heuer watch, P16,000 Limited Edition Adidas shoes or the trip to Macau that you've been wanting to take for so long.
I would tend to save that amount for the big purchase that I'm eyeing but Jomar says, that amount MUST BE GONE at the end of each month. I'm still struggling to meld this with my own money practices but Hilario makes a pretty good point when he says that this must be done in order to "heal" our financial limiting beliefs like "I can't afford it," "I don't have enough money," "I don't deserve expensive things like that."
I'll let this sit and register in my mind first while I wait for the next installment of Jomar Hilario's book to arrive in my inbox. The whole concept intrigues me very much and I think I should pick up T. Harv Eker's book as well while I'm waiting.
**If you want to also receive Jomar's ebook just simply sign up on his website: http://www.jomarhilario.com
-- designstudentny
For more personal finance tips go to http://www.onthewaytonewyork.blogspot.com
So, when I read the third chapter for Jomar Hilario's e-book, my first reaction was "Hmmm??"
Before I continue with my own reaction, I'll let you judge for yourself. Jomar Hilario quoted T. Harv Eker's book, Secrets of the Millionaire Mind wherein he stated the different categories to which we must plan our spending and allocate our budgets BEFORE we actually spend our hard earned salaries.
1. Financial Freedom Account - To be spent only on Passive Income creating things.
2. Long Term Savings - If you need to buy an expensive thing
3. Education - For financial education seminars, books, trips to seminars, workshops and coaching. This will teach you where to put your money for item #1 above.
4. Giving - If you want to give to church or charity
5. Expenses - Rent, Food, Fares, Donations to Family
6. Play - It's a surprise, I'll discuss this later.
All the other categories are pretty self explanatory especially for people who've read any personal finance book or attended any seminar. What came as a surprise to me was item #6. Play.
According to Hilario, "Play" pertains to 10% of your income that you're REQUIRED to spend on "the finer things in life," as he puts it, may it be that Louis Vuitton bag, Tag Heuer watch, P16,000 Limited Edition Adidas shoes or the trip to Macau that you've been wanting to take for so long.
I would tend to save that amount for the big purchase that I'm eyeing but Jomar says, that amount MUST BE GONE at the end of each month. I'm still struggling to meld this with my own money practices but Hilario makes a pretty good point when he says that this must be done in order to "heal" our financial limiting beliefs like "I can't afford it," "I don't have enough money," "I don't deserve expensive things like that."
I'll let this sit and register in my mind first while I wait for the next installment of Jomar Hilario's book to arrive in my inbox. The whole concept intrigues me very much and I think I should pick up T. Harv Eker's book as well while I'm waiting.
**If you want to also receive Jomar's ebook just simply sign up on his website: http://www.jomarhilario.com
-- designstudentny
For more personal finance tips go to http://www.onthewaytonewyork.blogspot.com
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