April 26

9 Money Management Tips to be able to Avoid Investing Problems


Why else would the universe see fit to give you any more? We all want more money than fail to pass the tests that the universe send us.

Have you ever walked past a coin on the floor thinking that you are too good (or embarrassed) to bend down, pick it up, thank the universe and then put it in your pocket for your investing account when you get home?

I indeed used to, until I realised that I was sending the wrong message to the universe.

Imagine if you left $5 for a beggar in the street, but he just looked at it as if it were nothing more than a slap in the face… would you apologise and then make it $20.

And yet, that’s what we expect of the universe. The universe is forever giving us money that we mistreat or disrespect. No wonder it doesn’t want to provide us with any more.

Respect What You Have

I started respecting my money when I was at my lowest point in life and had my last few coins. But by doing this and keeping to an effortless money management system, I always seemed to not only have enough… but more.

Respect just means being thoughtful about what you buy, needs over wants. It’s about finding what others have discarded and being thankful.

I never walk past a coin anymore, I wish I could say that I pick it up, but these days my kids beat me to it. Michelle, my 2-year-old, seems to have eyes like a hawk and can spot a coin from 100 paces.

She’ll race off (safely), pick up the coin, and mutter and few sounds (she isn’t talking correctly yet, but I’m sure she is thinking the words precisely in her little head. Thank you, the universe, for being so kind as to add to my investing pot.

That coin goes home and into her money pot as soon as she can, and that makes me incredibly proud because I know that is the first step to managing your money.

Needs Vs Wants

We often get needs and wants muddled up; of course, this is aided by the corporations who spend millions on marketing and advertising to get you to bow to their will.

For example, when you’re thirsty, what you need is a glass of water; however, what you want tends to be a coffee, a coke, or something similar. You need food, but you want a steak, you need a new shirt, but you want a branded one.

The list goes on, but you get the idea.

Now that’s not to say that you can’t have what you want. But wants need to be paid for out of a different pot than your needs. Being this kind of diligent is good money management and will help you get more money through motivation.

But I will come back to that.

The Money Management System

This system got me out of debt, earning good money, emergency savings in the bank, and money invested in a relatively short period. But it will only work if you are strict with yourself and stick to the rules.

If you adapt it to suit your current needs or lifestyle, nothing will change for you. The trick is to adjust and change your life to have the life you want while sticking to the money management system.

It’s very tempting to look at something and decide that it will not work for you. This will be your subconscious mind trying to protect you. Rather than letting your mind talk you out of it, just do it and see what happens.

Everyone I know that has put this into practice and been strict about it has seen massive differences in their lives and financial situation. Put simply, it works, but only if you do it properly.


The point of a money management system is to stop you from thinking of ways to spend your money because, let’s face it, you’re probably already very good at that.

And it manages this because before any money lands into your possession… you will know exactly where it goes. Any money you receive from here on in is classed as income, whether you find it in the street or win it on the lottery.

And all income is divided into pots before you can put your grubby little fingers on it, starting with the bills pot.

The bills pot is the largest pot because it is for your needs (not wants). Your bills are the essentials, like water, gas, and electricity. Healthy food is a need; crisps and biscuits are wants. A new skirt is a need; a designer skirt is a want. Be very strict with this, and you will notice significant differences in your financial well being.

The bills account receives 55% of any income.

Freedom Fund

Your Investing pot, this is your pay-yourself-first pot. 10% of any income belongs here. Investing will give you freedom in the future, time freedom, location freedom and the freedom of choice.

Emergency Savings

This pot has a limit to be decided by you, but I would suggest at least 3 times your monthly average income, which is achieved by adding 10% of any income into a savings account. Once this pot is complete, the 10% can be used to repay debt, education, or investing.

Education Fund

Whether you’d like to admit it or not, education is not just for the young; it’s as important to you now as it ever was, and we should all be doing some form of education at all times.

It keeps the mind young and healthy, so for this reason, we need to have a pot from which we can pay for our education. Not enough money in the pot? Then you have to wait until there is, and then you can pay for the education you crave.

10% of all your income goes into your education pot. Unless you have your next training already paid, in that case, you can use the 10% for debt repayment or investing.

Gift Pot

A minimum of 5% of all your income should be gifted to a person, persons, or organisation that you feel does good and aligns with your beliefs and values.

My mother did this when I was but a small child even though we sometimes struggled to buy the shopping. I never understood it as a child, but when my Dad, a factory worker, retired at 57 to look after my disabled mum, and they had more than enough money to live.

I understood the power of giving. You will get back tenfold what you give throughout your life.

Play Pot

An essential pot that will bring you the motivation to improve your circumstances and financial situation in some respects. You quite often see pictures of people posting a pic of a nice car, or house or holiday, or even a job.

And with pride, they will announce it as a boyhood or girlhood dream. In their eyes, this is the plaything they deserved and they would do whatever it takes to make it happen. That’s the kind of motivation this can bring if done correctly.

The play pot is 10% for an individual or 5% each if you are working out your finances as a couple.

The play pot has a few rules:

  • The total amount has to be spent each paying cycle (monthly if paid monthly, weekly if paid weekly, etc.) No saving some for next month to buy something more significant.
  • It’s used to buy all your wants. If you can’t afford your want now it just means you need to earn more. You must recognise the difference between a need and a want. Water is the need… anything else is a want.
  • The percentage can never increase. If you want bigger and better toys, holidays, and clothes you will need to increase your income. This is the only way to increase your play pot.

This is the exact system that I use and teach to all of my Investors, it’s works extremely well to increase your wealth and enable you to keep that wealth.

What you should do right now!

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To serve my clients equally well, I have set a limit of 100 high earning accounts. Once those are complete, the doors will close forever.

Don’t let this opportunity pass you by, click here now and apply to become one of only 100. Your future self will thank you!

Callum McLean

I believe that everyone has the right to be financially free. I founded "Wealth 4 All", an organization that guides people from all walks of life to achieve that goal, either by teaching them how to trade or through passive investments. Connect with me to get started today.

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