The concept of the household money machine could transform your future. In this post, we’ll delve into what this money machine is, how it works, and why it’s the key to supercharging your journey towards lasting financial success.
This straightforward concept, which you can implement today, regardless of your income level, has the potential to make a colossal impact on your financial wellbeing.
Understanding the Money Machine:
So, what exactly is the Household Money Machine?
Imagine it as a digital mechanism linked to your bank accounts. The fundamental idea is this – every dollar you earn, from any income source, is like raw material fed into this machine. Instead of letting it sit idly in your everyday spending account, you allocate a predetermined percentage of it to a separate account, ideally in a different bank, invisible in your daily financial activities. This money gets earmarked for investments, or is even being automatically invested into very safe, reliable assets.
Why the Money Machine Matters:
The beauty of the Household Money Machine is its simplicity and accessibility. Anyone, irrespective of their financial situation, can put it into practice. Initially, you may feel the pinch of setting aside a percentage of your income, but over time, it becomes as routine as paying taxes or utility bills.
As a Canadian, you probably want to start with a TFSA account like me to deposit these funds into. Personally I full up my TFSA account to the $6500 allowable amount and then start allocating funds to a separate account thereafter.
This action of having part of your income set aside for investments is essential for consistent investing and growth. You are filling up your money machine, which will eventually spit out cash for you (cash flow) that you can use to fund your life. It’s as simple as that!
Common objections to this model include the belief that there’s no extra money to allocate. However, consider this: if your taxes increased slightly (which happens often), you’d find a way to cover them. The same principle applies here. Once you make the commitment to your future wealth through this money machine, you will adjust your lifestyle accordingly to make this regular payment.
Setting Up Your Money Machine:
Numerous tools can assist with this setup. Wealthsimple is a popular choice for Canadians and the one that I use personally. With Wealthsimple, you can open accounts, including TFSAs, and automate your investments effortlessly. Start with a modest percentage, say 1%, to initiate the habit. The exact percentage is less critical initially than cultivating the automated saving habit. Over time, aim to increase this to at least 10% or more as your wealth grows.
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I like Wealthsimple because it’s out of sight from my day to day bank accounts, and I don’t have a bank card to access it easily. So I automate a set amount to go to that account each month and then it automatically gets invested into a simple managed portfolio. This isn’t getting me rich overnight by any means, but it’s slow growth is securing my and my family’s future.
Conclusion:
The Household Money Machine is your ticket to financial empowerment. It’s a simple concept with profound implications. Now, most people hear of something like this and then go about their day still thinking this model is out of reach. I urge you to take action on this system now before you go about the rest of your day. It can be setup in under 15 minutes!
Set up your automated money machine, ensuring that a percentage of dollar you earn starts working for your financial future. It’s not just about setting it up though; it’s about automating it, so you don’t even have to think about it. Wealthsimple has an automated withdrawal option which instructs it to take a set amount from your everyday bank account every month. Set this up and you’ll have it automated. Go set this up NOW!
If you’d like to set up a more personalized investment plan then we can help you with that. We aren’t just slinging real estate here. Most of our investors find an initial private consultation in the beginning to be very helpful towards defining their longer term goals.
Don’t hesitate to book a private consultation with us.
