A Simple Money System to Change Your Financial Life

A Simple Money System to Change Your Financial Life

What if I told you there was a money management system so effective it could change your financial life forever? I’m confident that applying this simple framework will have a profound and positive impact, and I believe you’ll thank me for sharing it.

This system isn’t my own creation. I discovered it by chance on YouTube while searching for a better way to manage my finances. The video was by Tom Ferry, and his approach was so clear and powerful that I felt compelled to translate and share it. In his talk, Ferry explains that when it comes to money, people generally fall into one of three categories.

• 80% live paycheck to paycheck: This is the vast majority. Their income barely covers their basic needs, leaving no room for savings, investments, or the life they wish they could live.

• 15% are wealthy: These individuals enjoy a comfortable life. They can save, invest, and afford luxuries like travel, nice cars, and the latest gadgets. The key difference between them and the truly rich is that their wealth often doesn’t last for generations.

• 5% are truly rich: These are the people with generational wealth.

Ferry focuses on the system used by the 15%—the wealthy—because it’s powerful yet simple enough for anyone to apply. It all starts with a single, crucial question.

How Much Do You Really Own?

Let me ask you the same question Ferry posed: If you received a direct deposit of $10,000 right now, how much of that money is truly yours?

The immediate, intuitive answer for most people is, “All of it. I own $10,000.” But the 15% think differently. Their answer would be, “I own $3,333.”

Where does the other $6,667 go? This is the heart of the system.

The moment any income arrives—whether it’s a salary, a gift, a bonus, or investment profit—it is immediately divided into three separate accounts:

1. The Commitments Account (33.3%): For fixed monthly obligations.

2. The Investment Account (33.3%): For growing your wealth.

3. The Personal Account (33.3%): For your lifestyle expenses.

The money in the Commitments account is only for bills. The money in the Investment account is only for investing. The only money you truly “own” for daily living is what’s in your Personal account. This discipline is what separates financial stress from financial freedom.

To understand the transformative power of this, let’s walk through an example.

The System in Action: A Four-Year Transformation