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What are you going to do about it?
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Now that you are aware of your why and your what, let’s determine the how. How do we begin to create residual income and how do we develop a financial freedom plan?
If you speak to almost anyone who has achieved any level of financial success you might be surprised to find out that they use many bank accounts. Why would they do this? Several reasons. Firstly, they usually have multiple income streams and secondly, so they can have awareness of what exactly is happening with the different income streams. If you had 3 businesses would you not have 3 business bank accounts? Of course mainly for accounting purposes, but also because you can have clarity on what is going where. Imagine if you knew exactly how much you were going to earn each week for the next 12 weeks, would that allow you to sleep better at night? What about if you knew exactly your expenses for the next 12 weeks then stuck to them? By having multiple bank accounts we can clearly create an individual plan for all the financial aspects of our economic life.
Here is the financial philosophy we personally use and share with thousands to stop living week to week and create financial freedom. If you choose to action this plan completely you too will stop living week to week, within the next 4 weeks and start creating residual income. How badly do you want it? Many people will read this and not action it, some will read this and create the plan and set up the accounts, but never create the habit and follow through. Some people, the special ones committed to a dream lifestyle, will stick to this philosophy 100% and create their dream lifestyle. Who will you be?
Included below are the 7 bank accounts we strongly suggest you set up today. It’s important to understand it’s not just the amounts, or percentages, as we understand it can change for everyone. What is important is that you go out today, create the bank accounts and start habituating your financial freedom plan.
Here is an outline of the 7 bank accounts and how to use them.
Bank Account 1) Business Account 20% of your Income
If you don’t yet have a business of some description it will be very difficult to create financial freedom. I’m not saying quit your job if you have a job, however we have offered two resources for you to start creating residual income below, so please follow the steps below and read this entire plan.
If you do have a business already, using this financial philosophy I suggest using no more than 20% of the businesses gross income for business expenses. I understand there are many different business models, and you may even have a company. The same principle applies whether you have one business, three business or a company. Its 20% total of all the businesses or company combined. If you have a business with staff or contractors I understand expenses can be higher, this is a starting point and recommendation.
If you don’t yet have a business and you make the intelligent decision to start using the residual income stream resources below you will find, in fact it will always be lower than 20%.
I have been asked many times about using a business credit card. If you are serious about creating financial freedom, which I’m guessing you are or you wouldn’t be reading this, my recommendation is to cut up your credit card right now. Why do you need it? Why have a resource that when you are already struggling or not living financially the way you want that can hold you back and get you in more debt? You can use a debit card instead, you will avoid temptation and not get yourself in more debt. A debit card allows you to order and book things over the phone or online if you need to, and can be used as a credit card. If you truly desire financial freedom and are still living week to week, pull out that credit card right now and cut it in half, it’s only doing you more damage. If you are reading this going, no way will I cut up my credit card, that’s who I normally find out has the most debt or money owing. Yes it might help your credit rating short term, but the more money owing on your credit card the lower your borrowing capacity to increase your net worth, and more bad debt you can get into.
Bank Account 2) Everyday Account 40% of your Income
To truly get ahead financially we really want to become frugal in our daily spending. Cigarettes, alcohol and fast food are a good start to eliminate. Buying unnecessary items like clothing, music, movies, games and other low cost items are a great way to get stuck in the rat race of living week to week.
The second bank account you want to have is one you probably already do, but how do you use it? The second bank account is an everyday savings account. Again if you have a credit card linked to your everyday account I would cut it up immediately and replace it with a debit card. If you are a business owner (or when you are a business owner), each week you will transfer 40% of your gross income into an everyday savings account and use it for your living expenses. Utilities, mortgage or rent, food and necessities. We start by living within our means first, then create more cash flow and then increase our level and standard of living. Many have it the other way round.
If you are not yet a business owner then this percentage will probably be higher for the simple fact that your income is probably lower and taxes are paid by your employer. In the case of an employee I would suggest using 60% of your total income for your everyday account.
Again, I understand that this varies a lot depending on your total income, however it’s important to remember that it’s more about creating the habit of frugality here (spending more wisely and not spending more than your budget).
Bank Account 3) Long Term Savings 10% of your income
Next we have the long term savings account. You know the one we all know we should have but don’t? Or we do have it but are not disciplined with it. I say throw discipline out the window. Instead, do as I did when I was younger and would waste so much money. I set up an automated direct debit with my bank, so every Friday the bank would automatically deduct a sum of money from my business account and transfer it into my long term savings account. I would also hide that account on my net bank so I couldn’t even see the account online. Out of sight, out of mind. I call this the law of positioning. Positioning yourself in a way you cannot fail. I’m usually pretty disciplined when I’ve made a choice to create a habit. But if I come home after a long day and I’m hungry, I walk to the fridge and open the door, and staring back at me is an open packet of M&M’s, and I look over my shoulder and no one is there, I’m going to reach in and grab a handful of those delicious chocolaty balls of goodness. Then I would probably do what most do, and eat the whole packet. It’s really simple, if you don’t want to eat the chocolate, why tempt fate, don’t buy the chocolate in the first place or have it in your fridge.
This bank account I believe is the easiest and simplest to set up, but usually the first step for most people creating financial freedom. Habituating not just saving, but spending less than you earn. If you take nothing else from this entire philosophy, and just take this one thing, you will stop living week to week within the next four weeks.
Finally you may be thinking, ‘well Jason this is great, but I only earn around $500, $300 or even less a week.’ Again, this is not just about the percentages, it’s about creating the habit. I was doing a live presentation on this philosophy recently and a young lady announced she was making less than $500 a week and there was no way she could put aside 10% of savings after living expenses. I replied “that’s great, because that’s exactly what this financial freedom plan will help you do.”
I asked her “could you this week open the account and deposit just $1 in this
account?” Of course she replied with “Yes”! Then I continued to ask if the following week she could deposit $2, then the following $4, then the following week on week four $8. And of course she replied yes. I had her set up that account then explained that gives us four weeks to implement the rest of the financial freedom plan and start making residual income and increase your income. When we get to the 5, 6, 7, 8, 9 and 10 week mark you will be set financially.
So you see it’s not just about the percentage, it’s about creating the habit. Get up right now, go to the bank, set up this bank account. Organize a regular automated debit and stop living week to week today. I would love to hear your success stories with this, feel free to message me anytime.
Bank Account 4) GST Offset Account/Tax Account 20% of your income
When you are a business owner you will need to set up a fourth account. The fourth account is to put aside your tax regularly. Depending on your business cash cycle, it will usually be weekly or monthly. The frequency in which your business is paid. The income stream resources in this book will pay you weekly or monthly. For example a Personal Training business owner could get paid daily, but they set up a direct debit system where they are paid in one lump sum weekly. Therefor you would put your tax aside every week so you don’t stress when the tax man comes to you wanting money. A GST Offset account in Australia is an account that is of high interest and an account you can touch frequently without it negatively impacting your accrued interest. Most countries also have a similar account, be sure to talk to your accountant and bookkeeper (if you don’t have one, now is a good time to get one) to organize your taxes in advance effectively.
Bank Account 5) Charity Account 10% of your income
I believe as a business owner, a citizen of planet earth and as a human being we have a responsibility. That responsibility is to give back. To give back 10% as a thank you for the opportunity to live in a world where we can create our dream lifestyle and we can create financial freedom. People curse their bills, swear at the government and blame the economy for their adversity. Although without these things we would not have the incredible opportunity to create a dream life and help others do the same. It’s important to be grateful for what we have and I believe as in the 4 Keys to True Fulfilment, life is truly about giving, not getting. How can you get involved with your local community to make a difference? Which cause or initiative are you really passionate about? How can you get on the phone right now and create a formal relationship with a charity or cause and get involved hands on with fund raising and events? Maybe you wish to do what we are, and start your very own charity organization. In the meantime, set up a bank account and put aside 10% of your gross income, that way when the time comes where you can do something special for someone, you are in the position to help them out with kindness and generosity. Pay it forward.
Bank Account 6) Travel Account Residual Income Stream Number 1
This is where the fun begins. You have created a travel plan and a bucket list as in steps 3 and 4 of this book. Well I hope so. If not, now might be a good time to go back and complete them. I’m going to assume that if you are reading this, then you have completed your 26 ultimate bucket list items, your 26 bucket list items for this year and also your travel plan for the next 12 months.
How do we create the financial leverage, and cash flow to enable you to afford all of those magical experiences? We do this with the 6th bank account, the travel account. Many people who struggle with money will say things like; “I can’t afford it!” or “when I can afford it!” These are both legitimate statements if you have a poor mindset. Someone with a financially free mindset would ask a question such as; “how can I afford it?”
Instead of living life in reaction and by default, you will begin to choose what you want, then set a plan for its attainment.
As you journey through this paradigm shift to a financially free mindset, you will discover that beyond a maze of fear, doubt and uncertainty, the only real thing that was stopping you, was you. You will begin to feel more confident, and make choices based on what you want in your life, not what you believe has been served to you. It will empower you with a sense of control and certainty unlike ever before. You will feel more motivated to take action every day, and do whatever it takes, because you realise you can actually achieve anything you put your mind to.
To fuel the financial fire necessary for your travel, the first thing you want to do is set up your 6th bank account, your travel account. Once you have your account set up, and know your weekly or monthly target that you need to save you calculated in the Travel Plan section, we need to get you making some extra money. If I was to say to you that if you were to work for just 3-5 hours a week (part-time) for the next 3-5 years, would you be prepared to do it? Of course, right?!
We have helped endless amounts of people in just the first 12 weeks make an extra $1000 a month residual income. That’s $12,000 a year for travel. How would you like an extra $12,000 a year to travel in the next 3 months?
The resource we advise thousands of people to use is to start a part-time Juice Plus business.
The reason why Kailey and I can afford to travel the world is because we run a part-time Juice Plus business and funnel 100% off all the monies from Juice Plus into our travel account.
If you keep doing what you have been before reading this book, will you have enough money to travel your travel plan? Probably not. In fact, it’s not too long before you can be on $2,000 or even $4000 a month. And remember, it’s residual income, which means you get paid that EVERY MONTH for the rest of your life no matter what. You can be just about anywhere in the world to do this. We assist you by adding you to a team with a team leader and weekly online training, help you do events and have an online VIP Group on Facebook for our worldwide team.
For just over $100 you can become a Juice Plus+ Distributor and start making money within weeks, still working your job or running your business and doing this part-time. How badly do you want to travel and create your dream lifestyle?
I understand you might be dubious, or not excited or not into the idea at all yet, but remember why you are reading this book, and that you are looking for more. Either way, take the time to check out these few videos with plenty of information on the Juice Plus+ product and the business opportunity, and then either email me personally at:
[email protected] OR private message me personally on Facebook: https://www.facebook.com/jason.grossmanpt and we can add you to our team.
By the way, you will also get your very own website that looks just like this one and also has a ton of research and information on Juice Plus: https://jasongrossman.juiceplus.com.au/
Here is the Video you can watch before you get started: https://www.youtube.com/watch?v=sKI9Q3iLWuU
Bank Account 7) Investment Account Residual Income Stream Number 2
In this version of the book we won’t go into depth about investing, however I would like to inspire you to start thinking about not just passive income, and stopping to live week to week. I would like to invite you to start also thinking about net worth and creating the ultimate in financial freedom. How would you like to buy your first home, or even an investment property? Perhaps a second or third investment property? Maybe you want to invest into a business or something else?
I’m going to tell you today that it can be easier than you think. Many people simply just don’t create the residual income streams necessary to fuel their investments first. Poor mindset people spend their money on small stuff like stereos, music, games, alcohol, cigarettes etc. Middle-class mindset people buy big stuff and get into bad debt, a massive home, cars, jet skis, boats etc. A rich mindset person uses their money to create more money and more financial freedom. What do you spend your money on?
Once you have residual income and cash flow coming through, you want to start putting some money aside for investing. I understand you might not know how to, or where to start. For now let’s just get you into the habit of
putting money aside for the intention of increasing your net worth through investing.
Net worth is simply what you would have if you took all your belongings and sold them, paid off all your bills and debts. What you are left with is your net worth. Although I believe passive income is what creates the financial freedom to pursue our dream lifestyle, net worth is what allows us to play a bigger game, give back to the community, hedge our hard work and leave a legacy for our family with a rock hard foundation.
So the 7th bank account you are going to set up is your investing account. The exercise I’m going to invite you to do now before I share with you the residual income strategy you are going to use is this:
If you were to invest in just one thing in the next 12 months what would it be? Most people would say a home or investment property, others might say a business or shares / stocks.
Although our own home is a liability and not an asset, if you don’t yet have your first home I would like to invite you to start there and assist you in creating a plan now to buy your first home. If you do already have a home I’m going to suggest a plan for your next investment property.
How would you like to save $25,000 in the next year for a home deposit for your first home or investment property? In a moment I’m going to show you exactly how. Before I do though, what if I could show you a way to save and invest $52,000 a year? That would give you a new investment property and some left over for a small business investment EVERY YEAR! This is not just possible it’s very simple. First you need to create the habit to put the excess residual income aside.
The residual income stream we use for fuelling your investment account is to become a VIP Travel Club Member with our World Ventures Group. Remember in the travel plan section we invited you to become a member? Well, not only can you become a member, you can also make a lot of residual income from being a distributor and helping other people create their dream lifestyle as members.