Piggy Banks are cool!

In my studying of finances and how to improve your own financial life I have come across a concept that seems to be quite common among many wealthy. That concept is to make financial freedom a daily thing. It is something you need to spend some amount of time on each day. We all face challenges every day of our lives so it is important to remind us of our goals to be free.

One very powerful and very simple way to do this is use piggy banks. All you need is three piggy banks.

On one of them write "Charity", the next one write "Savings", and the next one write "Investing". Every day put some amount of money into each piggy bank. It does not matter whether it is a dollar, ten dollars, or a dime. Put something in them every day. This will not only help you manage your money a little better by setting some aside yet it will remind you of your commitment to be financially free.

The money you put in the Charity bank you will give away each month. It does not matter to whom you give it, just donate it away. The savings bank you can keep in there or place it in a safe interest bearing account that will help you keep it. This money is for the major stormy days when you are down to last resort. The investing money is to only be used to invest in something (i.e. silver, gold, real estate, stocks, businesses, etc) or into improving your investing education. This is where your money becomes your employee.

Once the money has entered each of these banks it is only to be used for the purpose of that bank. It cannot be borrowed for other things with a promise to be put back later. That will ruin you financially. Every couple months look at increasing the amount you are putting away so you can manage your money even better. The goal is to be putting 10% into each bank. This means 30% of your income will be put away. The other 70% you can use to pay bills and spend. This will dramatically help you have a better financial future.

I know of people who put 80% of their income into these banks. How fun will that be. The more you can put away the faster you will be able to get out of the rat race. My wife and I do this and it is quite fun to do. I know it is already helping us out to be smarter with our money.

I challenge you to put this into practice for 90 days and see how it helps.