The wealth account is a detailed way to set up your bank account to automatically accumulate wealth. Social Media Marketing Brisbane | Gold Coast http://bobbygarrett.me

1. 4 The Wealth Account
I have developed the concept of a wealth account - linked
to the strategic spending system - which has worked
successfully for my clients for over 20 years now. The idea
of strategic spending is to divide your hard earned income
up into small, easily controlled bundles. The first bundle
taken out should be savings—a minimum ten per cent of
your gross earnings. This amount is transferred monthly
into your Wealth Accountwhich should be a Cash
,
Management Trust or similar. If you leave savings till last,
you will always find there is nothing left over.
The second bundle is your Cash Account This covers
.
your daily living expenses for which you normally pay cash;
a bit like your pocket money. These are all non-deductible
items. This account is simply accessed by a 24-hour access
keycard.
The third bundle is yourOperations Account This is
.
for those larger expenses which are usually paid monthly,
quarterly or yearly by cheque. This account should not be
linked to the Cash Account (i.e. you cannot access it with
your Cash Account keycard). We keep the bundles sepa-
rate. It is wise to use this account in conjunction with a
credit card for those occasions when your monthly expenses
are higher than the budgeted amount. The card acts as a
smoother, as next month will be a surplus that can be
paid back into the credit card.
In addition to your savings, which go into your Wealth
Account, you should also put in enough funds to cover all
your tax deductible expenses. This will save time and effort
for your accountant when preparing tax returns.
The system is linked by the use of the Transfer Account
,
into which your pay is deposited. From there, periodic
payments are set up to
transfer funds to all the
accounts on the 15of each
th
month. You should maintain
‘Don’t go around a small float in the Cash
saying the world Account and Operations
owes you a living. Account.
The world owes you nothing. The main aim is to accu-
It was mulate as much as possible
here first.’ in the Wealth Account and
Mark Twain use these funds wisely to
create wealth.
You can use the example
Wealth Account in Figure 2
to link up with your strategic
spending plan. Once you have committed to strategic
spending and keeping track of your spending using
this system, you are well on the way to achieving
your goal.
To summarise:
Set up your three separate accounts (your wealth system)
Wealth Account
Cash Account
Operations Account
Use your strategic spending sheets to track your
monthly and yearly spending.
Excellence is a commitment to completion
There is no right or wrong; there is only outcome.
Some people would rather be right than happy
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Your name: Date:
Name of Beneficiary of Trust:
Wealth Account Investment Portfolio P.I.E
All Unearned Income
All Tax Deductible Items
Accounting Fees
One Life
International Fees Property (Fixed)
Financial Management Interest
Works Fees
Financial Success Fees
Negative Gearing Equities
Disability Insurance
eg: Cash Management Trust
Minimum 10% Saving to
Wealth Account
Income
Transfer Account
(Net Income per month)
Expenses
Cash Accounts Operations Account
Keycards with Interest Bearing Cheque
Credit Card option
With Credit Card (For Overdraft Facility)
N o t L in k ed
Primary Spouse Living
Account Account
Monthly Housing Transport Miscellaneous
Living Expenses Client 1 Client 2
Rent/Mortgage ............ Car Payments............ Installments ............
Food ................. ..................
Maintenance ............ Insurance ............ Credit Cards ............
Beverages ................. ..................
Rates ............ Petrol ............ Education ............
Dining Out ................. ..................
Insurance ............ Maintenance ............ Medical ............
Clothes ................. ..................
Electricity ............ Registration ............ Dental ............
Hair/Personal Care ................. ..................
Telephone ............ Insurance ............ Contributions ..........
Pharmacy ................. ..................
Gas ............ Life ............ Holidays ............
Gifts ................. ..................
Health ............ Loans ............
Fares ................. ..................
Other ............ Other ............
Other ................. ..................
Figure 2
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