How To Grow A Money Tree

How To Grow a Money Tree

Yes, money does grow on trees! This article will show you how you can grow your very own Money Tree by following  these three basic steps. The three steps are:

1.The  Money Seed

2.Plant Your Money Seed  

3.Watch Your Money Seed Grow into a Money Tree 

Step #1: The MONEY SEED

In order to plant your Money Tree you will need a Money Seed. You are going to get your money seed by Paying Yourself First. Here is how:

·        Every time that you get paid and before you pay any of your bills, you are going to pay yourself first.

·        You are going to pay yourself 10% after taxes

·        You are going to Be Consistent!

·        Place this money in a bank account, online-bank account or a money jar.  Label your account “Money Tree”

• The concept of “Paying Yourself First” comes from George Clason’s book, “The Richest Man in Babylon”

 

Step #2: Plant Your Money Seed

Before you can grow your Money Tree, you will first need to know how to manage your money. This step is going to show you a very simple way that you can manage your money. 


Every time that you get paid, you are going to  plant your money by placing your money in to six separate accounts.

Your accounts can be banking accounts, on-line accounts, money jars or a combination of the three.

Account #1: Bill Account 

Every time that you get paid, place 50% of the money you earn, after taxes, in to your Bill Account. Your bill account will be used ONLY for paying your bills.

Account #2:  Money Tree Account

Your Money Tree account is your seed money from Step #1. The money in this account will come as a result of you consistently paying yourself 10% of your earnings after taxes. Do not touch this money until you accumulate $250.00

Account #3: Long Term Savings Account

Every time that you get paid, set aside 10% of your earnings, after taxes, in your Long Term Savings Account. You can use this money for things such as your down payment for your home, a new car, vacation or your child's education

Account #4:  FUN Account

This is your guilt free account and it is to be used solely for FUN! Every time that you get paid, place 10% of your income, after taxes, in your FUN account. At the end of the month you are to spend every dime of this money on something enjoyable J

Account # 5 Learning Account Your Learning Account should be used to continue your education. Each time that you get paid, you should place 10% of your income, after taxes, in to this account. This money can be used to purchase books, CD’s, classes, attend seminars etc.

Account # 6: Giving Account You are also going to need to have a Giving Account. You can use this account to pay your tithes or give to your favorite charity. Every time that you get paid, place 10% of your income, after taxes, in to your Giving Account.

Money Jar In order to help you learn the New Habit of Managing Your Money, I want you to get a jar or a can and label it your “Money Jar”. Every day, I want you to place something in this jar. It can be a penny, $1, $5, $10, $20, etc. Whatever you place your attention on, you will get more of.

 When you place money in your Money Jar daily, you will keep your attention on growing your money tree.

• The concept for How to  Successfully Manage Your Money comes from T Harv Eker’s book, “Secrets of the Millionaire Mind”

STEP 3: WATCH YOUR SEED GROW IN TO A MONEY TREE

You have already developed the habit of saving your money by paying yourself first and placing this money in your Money Tree account. Now it is time to get your money to grow. The way that you are going to get your seed money to grow in to a Money Tree is by investing and compounding interest.

When you save $250.00  in your Money Tree account, then you are ready to take your seed money and watch it grow.

An easy and simply way to get your seed money to grow is by investing in the stock market through Direct Investment.

The two types of Direct Investments Plans are:  Direct Re-Investment Plan (DRPs) and Direct Stock Plans (DSPs)

• You can learn more about Direct Investing by reading “The Motley Fool’s Investing Without a Silver Spoon” by Jeff Fischer

Direct Investing

Many companies will allow you to invest directly in to their company. The advantages of Direct Investing are:

1.      You can invest without a broker 2.       You can stop paying commissions

3 .  Buy stocks for as low as $10 per month

For more information visit:

The Money Paper’s Direct Investing http://www.directinvesting.com/

The Motley Fool http://www.fool.com

This article serves only as a starting point. If you want more indebt knowledge, then you should read: “The Richest Man in Babylon” by George S. Cleason, “Secrets of the Millionaire Mind” by T. Harv Eker and “The Motley Fool’s Investing Without a Silver Spoon” by Jeff Fischer

You can get these books at a discount price by ordering them on line at http://www.alibris.com