Discipline Discipline Discipline!

Okay- I’ve stressed this many times; but I’m learning evermore that it is step number 1 to any sort of financial success.  Discipline is necessary to any kind of expertise.  So yet again, I will stress Income Allocation.  I’ll use my own as my example for this particular lesson.

Whenever I recieve any kind of income- and like I said, DISCIPLINE, so this means ANY kind of income: from my monthly paycheck to a birthday check- I immediately deposit it into a free checking account I have with Wachovia labeled “Spending Account”.  From there it is immediately disbursed among several other accounts, each labeled as follows:

30% remains in my Spending Account
30% is transferred into my Bills Account
30% is transferred into my Investment Account
10% is withdrawn in Cash and placed into envelopes for my Tithe

It is very simple- My spending Account goes many more places though.
For example, For every purchase that I make with my spending Debit Card, I have one dollar removed from the Spending account and automatically transferred into a Wachovia Way2Save high yield Savings account.
I also use this for longer term accumulation for large spending that doesn’t qualify as an “investment”.  What is an example of this?  Well, I hope that in the next five years I’ll be blessed enough to ask someone to marry me.  So, to prepare for this sort of a purchase, I dedicate 10% of my spending account to an envelope on my desk with a circle drawn on it and no label, so that no one walking in will think I’m jumping the gun… but now you all know.  Shoot.
My Bills account gets used for things like gasoline, groceries, etc.
My investment account is widespread, but overall is ONLY used for purposes that will yield some sort of return.  This could range anywhere from purchasing a domain for a website (not a fun website but one I think could yield a return) to a business flight. 
Tithing is very important to me, and I tithe what I’m comforatable with giving.  God loves a cheerful giver.

This is an overview of my income allocation.  If there’s anything I would encourage you to do before doing ANYTHING else- Set up an income allocation procedure for yourself.  Then go through a Passive vs Active income analysis.  Get started!

Hope alls well guys! Maranatha!
–Michael

And check out my newest site: www.schooloftheology.org — I’m pretty excited about it If you’re interested in writing for it, let me know!