Financial Fitness

Financial fitness as outlined by James Ritchie in The Ministry of Business

After working hard for your income, this is what you do with your paycheck:

Account 1: Independence account: first you pay yourself.  This portion of your paycheck goes into an independence account. When enough has been accumulated in this account, you use it to buy investments (a Gold Account) and the profits and interests and dividends earned on those accounts go back into the independence account to grow that account and therefore allow you to buy bigger and bigger investments.

Account 2: Budget account.  Includes money for tithes and offerings, domestic expenses, living expenses, family expenses, and all normal costs of living.

Account 3: Savings account.  This account is for both your wish list and for planned spending.  The wish list might include a car, boat, cruise, yacht, etc… and the planned spending would be things like vacation, Christmas, etc…

I really needed this review and feel like it would be really good to set some goals with my spouse about how we can proceed to follow this advice.  In a way, we are doing this.

In Rich Dad, Poor Dad (not a book read in this class, but applicable, none the less), the author talks about making your money work for you, rather than you working for your money.  I believe he is teaching these same sound principles.  I think it might be time to listen.