Investment plan

The following is a method to manage your money better.

  1. Get 8 Bank Accounts.

  2. Use these Bank Accounts in the following ways strictly.

  3. Do not waver.

Use Bank Account #1 as 100% of your Collections account for all incoming funds.

From Bank Account #1,
Transfer an amount equal to 25% of your collections (or as advised by your tax accountant) to Bank Account #2 i.e. your account for paying tax.
Transfer an amount equal to 75% of your collections to Bank Account #3.
This is your Main account for everything else.

In Bank Account #3,
Reserve an amount equal to 10% of your collections for living expenses.
Reserve an amount equal to 10% of your collections for gold emergency fund, and mutual funds.
Reserve an amount equal to 10% of your collections for business expenses.
Reserve an amount equal to 10% of your collections for business marketing purposes.
This business marketing reserve should earn the expected gross revenue i.e. 100% of your Bank Account #1.

From Bank Account #3,
Transfer an amount equal to 10% of your collections to Bank Account #4 i.e. your Investment account for U.S. stock trading.
Transfer an amount equal to 10% of your collections to Bank Account #5 i.e. your Investment account for Indian share trading.
Transfer an amount equal to 5% of your collections to Bank Account #6 i.e. your Cash Account for buying real estate.
You should buy real estate in cash only.
Transfer an amount equal to 5% of your collections from Bank Account #7 i.e. your Cash Account for health purposes.
Transfer an amount equal to 5% of your collections from Bank Account #8 i.e. your Cash Account for parents or parental care.

If you have read this far, start calculating backwards from here with the question - “How much would I need for this?” - at every stage.