Organizing money is key when managing finances. Where to place the income to pay expenses, and to sort out moneys over expenses. There are four accounts every business should have: In/Out Flow (Safety Net), Security, Growth, and Dream. Each of these accounts have a specific function(s) to help better see any company prosper from utilizing money to mastering wealth.
In/Out Flow: also known as a person’s Safety Net, is the main bank account. This is where all money earned and expenses go through. Any money over a Three (3) month Budget Safety Net (known as Money Over Expense or MOE) is then given the 60/40 ÷ by 3 action. That split is placed into the 3 Needs of Purpose; Security, Growth, and Dream.
Security is to protect an individual/company when there is zero dollars left. It is the last resort ‘Need’. Growth is allocated toward investments. Placing any money in this ‘Need’ into smart Assets. While leaving a Dream ‘Need’ for the things an individual/company desires. A vacation, new house, a company celebration. Learning to organize money is the first step to mastering Money Management.
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