Are you ready to achieve financial freedom?

Financial freedom is all about taking control of your finances. I believe that anyone can transform their financial situation.

However, if you don't have a healthy relationship with money, you'll continue to encounter money issues.

In this blog, I share a simple method for managing your money for financial freedom.

If you are tired of living paycheck to paycheck, you'll want to read this.

Watch the video below:

(Click here to watch on YouTube)

Do you want a copy of my FREE money management spreadsheet for creating financial freedom? CLICK HERE to download it!

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You can't earn your way to financial freedom.

A lot of people can earn a lot of money, but they don't know how to hold on to it. As a result, they fall into debt. I can relate to this. There was a time in my life where I was in a lot of debt. I didn't have a system or a method for managing my money.

I had money coming in, but I was freely spending it and not paying attention to where it was going. When I received my credit card statements every month I realized that I was spending more than I could afford. Even worse, I continued this behavior and kept digging myself into a financial hole.

It wasn't until I learned how to manage my money that I finally felt in control of my finances. I'm going to share a money management system with you that I used to get myself out of debt and achieve financial freedom. You can apply this system easily to your financial situation.

The habit of doing this exercise is more important than the amount of money that you have in the bank. If you can't manage the money that you have right now, you will not be able to handle larger sums of money.

Watch the video above where I share my computer screen and walk you through the money management spreadsheet that helped me achieve financial freedom!

Money Management Method – The JARS System

I learned a simple, yet powerful money management method from T. Harv Eker. In his book, Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth he teaches you how to manage your money for financial freedom. He suggests that you break down the money that you make and your expenses into six jars or categories.

Category #1 – Necessities (55% of your income)

These are things like your rent, mortgage, utilities, groceries, gym membership, car payments, phone bills, etc. You want to make sure that 55% of your income is going towards the things you need every day to live your life.

Category #2 – Fun (10% of your income)

It's important to focus on your goals, but you also want to make sure that you're enjoying your life. This is your play money for activities that you enjoy, like dining out, traveling, or pampering yourself.

If you're enjoying the benefits of your money, you will link pleasure to the process of having money. In short, having fun will motivate you to make more money.

Category #3 – Education (10% of your income)

A lot of people settle for whatever amount of money that they make. They don't aspire to achieve more. Saving money can be hard, but when you take the time to learn about money and invest in yourself, the process can be enjoyable.

I believe in the power of education. Investing in myself has been one of the most important things that I’ve done that have contributed to my success in life. In the words of billionaire investor Warren Buffett, “Ultimately, there’s one investment that supersedes all others: Invest in yourself.”

One of the best ways to improve your finances is to learn from others who have achieved the success that you desire. You can invest in their knowledge and learn directly from them. This knowledge can be consumed in the form of books, seminars, mentors, and coaches.

Category #4 – Long-Term Savings (10% of your income)

This is your “emergency fund” money that you don't touch. You never want to be in a position where a crisis hits and you have zero savings.

Ideally, you want to make sure that you have 3-6 months' worth of your expenses put aside in a savings account for emergencies. Also, you want to allocate a certain percentage of your income to a future goal that you want to achieve, like buying a home.

Category #5 – Financial Freedom (10% of your income)

This involves taking a percentage of your money and investing it into assets that can appreciate over time. This could be investing in cryptocurrency, building an online business, developing an app, or building a YouTube channel or blog.

There are so many investment opportunities available to you. However, if you don't put aside money for your freedom, money won't magically fall into your life. If you have to cut back on your necessities to put money aside for your freedom, do it. Otherwise, there is no possibility of achieving financial freedom.

Category #6 – Contribution (5% of your income)

This could involve giving a portion of your earnings to a charity or giving money to the homeless. Not only is contribution great for others, but it's also important for you. Authentic fulfillment comes from contributing to others.

It trains your brain to operate from a place of abundance rather than scarcity and fear. When you have your hands open to receive, more good things will flow into your life. However, if you're worried to give anything away, you cannot receive more.

Wherever you are starting from is OK.

We all start somewhere. However, you will never get to where you want to go if you don't know where you are. You want to create your personalized money management system based on your current financial situation.

As an example, if you go through this spreadsheet exercise and realize that 90% of your income is going towards your necessities, that means that you've got no money left for the other categories that I shared above. If this is the case, you've got to get creative and figure out how you can lower your necessities.

It comes down to determining which of the categories you can't afford to do right now, in the pursuit of achieving financial freedom. At the beginning of my entrepreneurial journey, I was willing to sacrifice fun because freedom was more important to me.

In my opinion, staying consistent with your education is critical. If you don't grow, you'll stay stuck. Your income is in proportion to your level of personal development. The more that you develop yourself, the more money that you'll make.

This is how to manage your money for financial freedom.

I hope that this money management system proves to be as life-changing for you as it was for me. Listen, I know what it's like to struggle financially.

However, your past financial mistakes do not have to define your future. Take ownership of your mistakes, learn from them and focus on creating the financial freedom that you desire and deserve.

Do you want a copy of my FREE money management spreadsheet for creating financial freedom? CLICK HERE to download it!

I would like to share with you how to calculate and track your net worth. This is one of the most important finance rituals that you can have for your life.

How will you ever know if you are getting ahead financially if you have no way of tracking your wealth?

I first started engaging in this ritual in my early 20’s, when I would track and update my net worth every 3 months. Today, I track it every 6-12 months. I have come to understand that my net worth is the most important number when it comes down to my financial wealth and abundance.

Theoretically, your net worth is what you would have in cash if you sold every significant possession and paid off all of your debts.

If your net worth is a negative number, don’t worry. You aren’t alone. All that matters is that you take action and start making better financial moves.

In the words of Benjamin Franklin, “Your net worth to the world is usually determined by what remains after your bad habits are subtracted by your good ones.”

Watch the video below:

(Click here to watch on YouTube)

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Do you want to learn how to master your finances? CLICK HERE to join my Life Mastery Accelerator program!

It’s not about how much money that you make, but rather how much money that you get to keep AND what you choose to do with that money, in terms of accumulating assets and building up your net worth.

A great example of someone who has effectively mastered the investment game is Warren Buffett. Known to be worth $75 billion dollars, he is one of the most successful self-made investors in the world.

At the age of 11, he used cash from his paper route to buy farmland. At 15 years of age, he already had a net worth of $6000.

I believe that while we should all strive to make more money, that doesn’t necessarily mean that we are worth a lot of money. For example, you could make one million dollars per year, but you could also be spending all that money in one year. If you adopt this behaviour pattern, you will never get ahead in life.

The goal is to accumulate assets that can then provide a passive income source for you, which will continue to grow as you move throughout your life. If you take this path, you will achieve financial freedom.

I see a lot of people who work their entire lives, but have nothing to show for it. Make money, but make sure that you do something with it. If you don’t currently know how to manage your finances, then making money isn’t going to help you.

Your net worth is your assets minus your liabilities. Your assets are what you own and your liabilities are what you owe.

You want to focus on accumulating more assets. Go through all of your assets. Examples may be cash, a business, or investments like stocks, mutual funds, or real estate.

Calculate where you currently are for each of your assets, and then add all of them together. Keep in mind that your final number isn’t your net worth because you also need to take into account any liabilities that you may have.

For example, you may have a student loan, a line of credit, a car loan, or a mortgage. Calculate those liabilities and come up with a final number.

In order to determine your net worth, you would take your assets and subtract it by your liabilities. Ideally, you want to accumulate more assets over time and reduce your liabilities.

Watch my YouTube video above to see how to calculate and track your net worth using an excel spreadsheet!

When you go through the process of calculating and tracking your net worth, you may realize that you need to cut out some of your expenses and change your lifestyle. Being smart and taking these steps is what will determine your financial wealth, more than anything else.

This is how to calculate and track your net worth. The more that you measure something, the easier it becomes to manage it. I challenge you to create a ritual around financial wealth and abundance and make it a priority every day.

As part of my monthly Life Mastery Accelerator program, I have a live training session coming up in the next few weeks where I’m going to dive deeper into how you can manage your money more effectively.

I will also share some of the strategies that I employ in my life when it comes to creating financial wealth and abundance. A lot of people are great at making money, but they don’t know how to invest it, and that is what I teach people how to do.

I believe that financial freedom begins with a change of your mindset. Calculating and tracking your net worth is one of the most important steps that you can take in order to improve your finances.

T. Harv Eker said it best, “Focus on all four of your net worth factors – increasing your income, increasing your savings, increasing your investment returns, and decreasing your cost of living by simplifying your lifestyle.” The result? Financial freedom and abundance.

Do you want to learn how to master your finances? CLICK HERE to join my Life Mastery Accelerator program!