How I Manage My Money, Budget & Cashflow To Achieve My Financial Goals – SO EASY! || SugarMamma.TV

How I Manage My Money, Budget & Cashflow To Achieve My Financial Goals – SO EASY! || SugarMamma.TV

hi everyone so the other day I was thinking it would be really cool if I could share with you how I manage my own accounts cash flow and budgets this formula that I created for myself I created many years ago and it's always kept me out of trouble so I'm really excited about sharing this with you now also whenever I've shared this formula with anyone through my online Skype consultations or through the sugar tribe they've always loved it and they've said it's been so helpful for them in getting out of debt getting on top of their finances and they've become so protective of this it's almost become like a financial ritual for them on a regular basis sometimes it's the smallest most simplest changes that have the biggest and best impacts life is too short to be worried about money and you can help me by sharing this video I would be so incredibly grateful alright so essentially I have five accounts all these our accounts are with the one bank now the reason I do this is because I can see my entire financial cash flow situation in the one screen no logging in and out of different apps or accounts floating around inside of the space everything is here plus another really important benefit to having it all with the one account or the one bank I should say is if I ever need to quickly transfer money between these accounts it's there within seconds I don't need to wait overnight for money to be transferred through it's there ready to roll now I will talk it through each of these different accounts and how they work and how I structure them and I'll also share with you my other secret hacks for success at the end of this video so make sure you watch all the way to the very end so first up is my everyday banking account attached to this is my linked ATM debit card this is where all my short-term expenses come out of so if I'm grabbing a coffee with a friend or going out to for lunch with a friend I will pay for that with my ATM debit card this is where all my daily weekly fortnightly monthly expenses come out now within this budget I also allow myself to have some money for clothing shoes and accessories of a set amount I also have a set amount for during the week Monday to Friday and I have a set amount for weekend entertainment so it makes me accountable and responsible but I know that it fits within this budget so I respected and honor it but it comes out of account because it fits into the category of being daily weekly fortnightly and monthly second up I've got my life and emergency money account now this is where we stockpile or create a financial float in planning and preparation of those irregular bills oddly the biannual and the annual ones these are the ones that often get us into trouble before we know it it's Christmastime and something gonna buy give sort of people we've got a holiday book it's an expensive time of the year if you haven't planned and prepared financially for that so many people reach for their credit cards and that is a really toxic place and I often find that once you're in credit card debt what you have this mindset where you think oh well $6,000 of credit card debt already what's another five hundos and you just charge it again you get deeper and deeper into debt and it's more and more self-destructive but if you have that money set aside to go no it's okay I've already got $2,000 allocated towards paying off my holiday or paying for some Christmas presents and you're enjoying the festive season you're going to feel so much better about this so this is where you have a financial float that prepares for all those quarterly bills such as strata bills water bills council rate and you pay on a quarterly basis you stockpile in this account this also includes the biannual bills you might get in any annual bills this is where you plan and prepare for it but then on top of this account you also have your emergency money in here now how much emergency money you need is very different from one person to the next you need to think about what a set amount of money would make you sleep well at night knowing that if something happened to you you can afford to pay for it so say for example I realize I need $10,000 emergency money and I realize I need a financial float of at least $3,000 to always plan and prepare for these bills plus take into consideration things that happen in life this would mean I would always aim to have an account balance of thirteen thousand dollars now if I ever happen to get say it another flat tire and I had to take say five hundred dollars out for a new tire I would take five hundred dollars from this account transfer it to my credit card to pay for that or I transfer it to my ATM every day account so we can get it out through my ATM debit card and pay for it that way once I pay for it as soon as I possibly can I will we build this account back up to $13,000 that is incredibly important third account is my lifestyle account your lifestyle account could be something like saving up for a deposit on your first home it might be saving up for a new piece of equipment a new car for me it's saving up for a holiday and there's something really warm and fuzzy when I log in to see all my accounts and I see this getting bigger and bigger because I know I am going to be able to enjoy a guilt-free debt-free holiday with this money building up over time the fourth account is my savings to invest account as you guys know I have a thousand dollar project portfolio going but I also have my own separate investment portfolio that I like to contribute to on a regular basis so what I would do is as I get paid and I do be the money up I also add some money in here so that the money can sit in this is savings account whilst I'm doing my research and thinking about what's the next investment I want to make and where it's going to be you can safely sit in this account and accumulate in the meantime then the last account is my thousand dollar project account which I love and as you guys know anytime I'm doing the thousand dollar project and I create save hustle manifest earn some extra money for the thousand dollar project it goes into here the moment I have over a thousand dollars in this account I go and buy some shares and build my long-term passive income stream if you wanted to you could essentially make your saving to invest account your thousand dollar project account is completely up to you or you can be like me and have two going at the same time I wouldn't recommend any more than that down the bottom is my credit card and to be honest I only really use my credit card for a purchase maybe over a certain amount of money where I really want to collect those frequent flier or loyalty points and what I will actually do is say for example I have to pay for something buying a gift for a friend is are coded in my budget say it costs two hundred dollars I will either within seconds of buying at least with my credit card literally transfer $200 from this account or that account onto my credit card so there's never any debt created now on that note I also do this other hack which is a rounding up hack so the other day I had to buy a special lunch for Rocco for a sports carnival and they only took a credit card the lunch cost seven dollars fifty I pay for it on my credit card and I immediately transferred seven dollars fifty to my credit card but ten dollars I do this with most of my purchases when it comes to using this credit card so it's actually not only never any money owing on it and I'm collecting all those really valuable frequent flyer points which helps save for my holidays it's actually got a buffer I've actually got the surplus on the account and it means at the end of the month or at the end of the quarter if I've got a couple of hundred dollars or more on that a card I can then go and reward myself with a nice treat or a nice experience or some sort of luxury purchase that I'm going to really enjoy but it's a it's a really nice habit that I really value in managing my own cash flow budgets and bank accounts now another good hack that I use that could be helpful for you if you have a mortgages is I use my emergency money is not in my life account I actually have my emergency money sitting against my home loan with my redraw facility switched on now the benefit by doing this is I will save more money in time and interest by having it against my home loans I pay less money and interested in potentially pay it off faster and I would in earning interest right sitting in an emergency account but if you do this you must make sure that you're read your facility is switched on you will not incur any fees or charges by transferring money out of your home loan now another little hack that I find is really helpful in managing my cash flow is even though some of my bills are quarterly I'll actually pay them monthly so say for example my council rates are around three hundred dollars per quarter instead of getting the stress of having that quarterly bill and worrying about whether I have enough money in my life plus emergency money I will actually treat that bill as though it's a monthly bill and I will factor a hundred dollars per month out of my budget from the everyday account and transfer $100 to my council bill every month I know technically I'm missing out on potential earning some interest but it's such a small amount I'd rather peace of mind knowing that that bill is actually paid and when I get the bill in the mail and actually shows like oh nothing because I've already prepaid all those bills I'm completely on top of it if you have particular bills such as yours council rates water bill look at maybe trying to pay them on a monthly basis so that you're creating more consistency in your life it really does make a big difference and then my final hack to my secret of music ounces I check them on a regular basis I never get anxious about looking at my bank account seeing what their balance is I take full responsibility and ownership of my accounts and manage them correctly I will log into my accounts at least once a day if not twice a day a couple of benefits and reasons behind doing that I know exactly where I stand financially I also know if I'm sticking to my budget or not I'll know if I have spent too much money during the week and need to take some money out of my weekend money or if I've actually got some money left over from my clothing accessories and shoot allowance I know where my money is going but also it stops online fraud if my card is ever skimmed I quickly catch on to it and inform my bank account and stop them dead in their tracks online fraud is growing all the time and it's scary how many people get hit with this and it doesn't they don't realize until it's too late so check your bank accounts on a regular basis but also get excited about these other accounts because they're actually financial goals and they're really exciting watching them build and grow and as I said you can use the thousand dollar project if you want to build any of these accounts as well now you're probably wondering okay this all sounds good makes sense but how do I know how much money to put into each of these accounts this is the other part of my success you must put money in the accounts the day that you get paid say for example I get paid five thousand dollars after tax beat on the first of every month do a budget and work out exactly how many daily weekly fortnightly monthly expenses and I add them up using the sugar budget app mix is so much easier to do and say I work out that after this is my total after-tax I'll put 80 I work out I need at least two thousand dollars in this account per month to cover all these expenses I then work out I want to put say thirteen hundred dollars per month into building my emergency money and my financial float life account I then decide I'm going to put seven hundred dollars into per month to saving up towards my next holiday this shows I'm now allocated four thousand dollars of my $5,000 deposit I then decide okay I'm going to do the five hundred dollars for example per month for my savings to invest account and another five hundred dollars to start the thousand dollar project that comes to a total of five thousand dollars you wouldn't do this the first of every from the moment you look that money hits your account because if you leave this for a couple of days you might get tempted you might distract it and it will throw you off kilter you must get into the habit the ritual of doing this the moment you get paid and that means you've got money all your financial ducks are lined up and you're on top of achieving your goals but as I said you might want to prioritize making this building up this life and emergency money account a lot faster now if that was the case I would recommend you maybe hold off on either of these accounts if possible so in this situation I would say okay all right I want to prioritize building this up as fast as possible I'm gonna make this say $2,000 per month I'm gonna cut this down to say $300 per month I'm gonna cut this down to $300 per month as well and I'm gonna make the thousand dollar project account say for example four hundred dollars per month that then still adds up to five thousand dollars but you can decide you can tweak this any way you'd like to build up towards your $5,000 so you're allocating money religiously on a ritual habitual process to these accounts of the always stick to your budget all right everyone I really hope that you've enjoyed this video if you would like to share this video with any of your family and friends or on social media please feel free to go ahead and share it I'm really determined to help as many people as possible and I'd love you to help me achieve this goal of my own have a fantastic week everyone and if you ever interested in having a Skype consultation with me please click on the links below and I will take you to a page where you can not only read about how they work but also you can go ahead and book a Skype consultation with me have a fantastic week everyone I will see you later the week for lifestyle of yeah for now

24 thoughts on “How I Manage My Money, Budget & Cashflow To Achieve My Financial Goals – SO EASY! || SugarMamma.TV

  1. Great video! How do you decide which single bank to go with? I have multiple banks purely because of their bonuses/interest rates/lack of atm or international fees which I wouldn't get from just one bank.

  2. Great video. Thanks for sharing, I do keep in eye on my finances, what goes in and out during my goals process. 👍🏽😊

  3. We are living paycheck to paycheck with little left over each week that I just don't know how to achieve this!

  4. It's Account One that causes me SO many problems! (Which of course knocks on into the others) If you're paying for coffee/lunch etc, how do you keep TRACK of whether you've overspent and accidentally gone into clothing, or weekly (is this food?) or weekend entertainment amounts? I feel like, even if I frequently check, there can be MANY payments coming out of this particular account – and often they don't come out immediately, but might not debit for up to a week.

  5. Hi Canna ☺️ Very Helpful Video 👍 10-15% of my Earnings I will invest in Stocks or any other investments I will make sure it will turn into Monthly Habit. Have a Beautiful Day☺️

  6. Lovely simple video 🙂 Thanks Canna! I was just talking to my daughter about this sort of set up before she starts university in September. While she won't have much of an income, it's a great time in her life to learn to budget, manage on limited funds and get enterprising with selling clothes etc. to create a savings and investments fund. xx

  7. Thats a cool idea about your credit card buffer. Do you still get points if you have a surplus and use your own money? I have a similar setup but all my accounts are offsetting my mortgage so I dont have my emergency fund directly in the homeloan account

  8. Thank you Canna for this informative video which I’d love to implement but my trouble is that I’m self-employed and don’t have a regular income. It’s such a struggle trying to keep on top of things. Also, I feel like I’m funding my daughter’s lifestyle. As soon as she gets paid she spends it and then comes looking for a loan about a week before pay day. She now owes me so much money and I’ve totally let get out of hand . I love her but she’s a nightmare with money. xxx💓

  9. I’m an accountant and I have managed my money in exactly the same way for years. Although British credit card companies won’t let you over pay😡🙄

  10. My accounts are very similar:
    1) Everyday 30%
    2) play account 15%
    3) Emergency already set
    4) Savings for investing/hold in cash reserve 55%

    Great video 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *