Noted designer and now business mentor, Peleg Top is a creative entrepreneur with
more than twenty years of experience running his own design firm and mentoring cre-
atives. He’s also co-author of The Designer’s Guide To Marketing And Pricing. In it, he
shares his personal money management system. His system can easily be adapted for the
musically-inclined. He recommends setting aside 30 percent for taxes to start. What’s left
will be considered 100 percent. From this, allocate 60 percent as a lifestyle account.
These funds cover your house payment or rent, groceries, and other day-to-day necessi-
ties. Ten percent is set aside as a wealth account for investments. Once the money goes
into this account, never touch it again. Five percent goes to your joy account. This is
money that funds the fun things in life, such as going out to dinner, catching a movie, etc.
Your dream account is used for bigger things, such as vacations, a new car, or a house.
Ten percent is set aside for this purpose. Five percent goes to your enlightenment account
and is used for things like personal or business growth, continuing education, training, or
coaching. Finally, ten percent goes to a spiritual growth account and is used for tithing,
donations, etc.
Start saving and investing early. The earlier the better. The longer you wait, the more
difficult it is to achieve financial independency and have a comfortable retirement. Sure,
for many readers, retirement is a long way off, but thinking and planning for it now will
help ensure you’re not greeting people at Wal-Mart when you’re seventy-five.
Here’s a reality check. The richest Americans are investors and savers. Of those who
have an income of one million dollars or more, only one-third of their income is gener-
ated from their job or business. The rest comes from investments. Getting your piece of
the pie means investing and saving.