Affiliate Marketers has to deal with money. Sometimes we have little money and other times a large sum of money. In this post, I am going to talk about 1 most important factor, related to money.
Proper Money Management System for Affiliate Marketer
Let me ask you a question:
If you have $5000, that you have earned recently this month. How will you make use of it? What all will you buy? How much will you save? Or, will you simply spend it on random needs, as and when they occur?
Friends, let me tell you. Wealth is LIVING ENERGY. It won’t flow into the lives of wanderers or squanders. But, it flows abundantly to those, who follow its rules. World renowned financial teachers like Harv Eker and Robert Kiyosaki always teach the fact that “Money Management is more important than the money you earn. So, let us see how we can manage our money as an Affiliate Marketer.
Proper Money Management
As an Affiliate Marketer, let us say you’re earning $5000 per month. Let us see, how we can manage it. The amount can be anything more or less than the specified amount but the management procedure remains the same.
We recommend the TWCGO formula of money management learned from Harv Eker and various other online experts.
T W C G O
First alphabet T stands for ‘taxes’. As an Affiliate Marketer, you are starting your own online business. So, you need to register your start-up and pay taxes periodically. Taxes vary from country to country. In my country, it is 30%. So, if you earn $5000 a month, $1500 will go towards paying taxes.
Second alphabet W stands for ‘Wealth’. As T. Harv Eker talks about a separate FFA, that is Financial Freedom Account. This account will serve the purpose of us being financially free. We must allot 10% of our income to this account. Therefore, if we earn $5000. We must put $500 to nurture our Financial Freedom.
Third alphabet C, stands for ‘Charity’. There is no successful financial life without contribution. Therefore, we must allot 10% of our income to contribute to needy or the non-profit organization, we believe in. 10% of $5000, that is $500 will go for Charity.
Fourth Alphabet G, stands for ‘General’. We must allot 30% of our total income for our general necessities such as paying bills, long term savings, education, and other household purposes. Therefore, 30% of $5000, that is, $1500 is available to us for our general necessities.
Fifth Alphabet O, stands for ‘Operation’. It means, all the tools we require in our business along with advertising and marketing cost must come from Operation account. We should allot 20% in this account from our income. In our given case, it is required to allot $1000 in our operation account to grow our business.
To summarize, this is how we should break down our income of $5000
T (30%): $1500 for Taxes
W (10%): $500 for our Financial Freedom Account
C (10%): $500 for Charity and Contribution
G (30%): $1500 for our General necessities and Education
O (20%): $1000 for Operational costs of our business
Now, let’s have a small discussion on the Top-3 ISSUES that newbies face while following this system:
“Earned money is hardly equal to general necessities.”
And, the quick answer to this problem is to understand that, you are playing a money game and if you don’t follow its rules, there is no way you can win! How can you play ANY game, without knowing its rules! Think about it.
Therefore, no matter how little you earn, follow TWCGO system of managing money. If you are just starting off and not yet registered your business, then, of course, you can save your Tax amount and use it for your general purpose and education.
Still, if you are tempted to spend all your money in your necessities. Hold on and TRUST YOURSELF. All you need is to increase your income. Right? Just follow the Law of Money and you will receive whatever you desire. Bible says: “Ask and it shall be given to you. Seek and you shall find. Knock and the door shall be opened unto you.”
“I hardly have any money for myself. How can I give it for charity? And, why should I?”
See, because we have these patterns created by our society, we live with a broke mindset, as they are ‘super broke’.
Question yourself: “Can you receive LOVE, if you don’t give it?”, or “Can you become fit and healthy, without exercising?”
NO. You need to give love if you want to receive it.
And, you have to set your body in motion, you need to exercise if you want to be fit and healthy.
In a similar way, you need to give money, in order to receive it. This is the Law of Money. We must follow it.
Bible says: “Give and it will come back to you, good measure, pressed down, shaken together and running over.”
“I cannot afford 10% for my Financial Freedom Account. I’ll start it when I earn enough money.”
No, Consider this amount as a seed. Nurture a habit of putting away 10% of the money you earn, in a separate account. It is not to be touched. Once, it is grown a bit, you can invest it. Then, this money will work for you day and night.
Look, this is the money you are paying just to yourself. And, the Law of money is to pay yourself first. Follow the Law and give 10% of your earning to yourself. Even if you don’t understand it, but this is spiritual.
IT IS A LAW PROVEN BY ALL THE WEALTHY AND SUCCESSFUL PEOPLE.
Being an Affiliate Marketer, it is also required for us to invest the money saved in our Operational account to buy several digital Assets. In my next post, I’ll talk about
Digital Assets for Affiliate Marketers
So, stay tuned 🙂
If you ever need a hand or have any questions, feel free to leave them below and I will be more than happy to help you out.
All the best,