The JARS Money Management System

Have you ever been in a situation where just last week, you had all the money in the world but today, your wallet is as empty as the day you bought it. Did you scratch your head, head shaking in confusion, wondering where on Earth did your money go? Have you ever been so frustrated in yourself because when will you ever learn how to manage your money properly?

FEAR NOT! We have a solution for you and this solution is called JARS Money Management System, a 6 jars method!

The 6 jars method requires you to split your income into – surprise! – 6 different jars. Each jar serves a purpose so we’ll go through each one of them so that by the time you reach the end of this article, you’ll be an expert on JARS money management system. Ready? Let’s go.

Jar #1 NECESSITIES

Now this jar is your most important jar because 55% of your income goes here. Sure, 55% sounds a lot but for a good reason. The NECESSITIES jar is where you’ll manage your everyday expenses – bill, rent, food, electricity, petrol etc. This is a great way for you to budget your money as well as track your expenses – it will leave less “Where did my money go?” migraine-inducing stress that you usually have because this time, you’re much more prepared to work on strategies in case you do overspend your 55%.

Jar #2 PLAY

The PLAY jar is where you keep 10% of your income for – yay! – having fun. Budgeting is hard, we get it, so this jar is just for you and you only. Plus, it makes a great motivator because you know you’re saving money for yourself too. Just make sure you spend the money in this jar every month! In the words of T. Harv Eker, “in order to become financially free your soul has to be happy.” So use this jar to treat yourself to something special!

Jar #3 LONG-TERM

Next, ladies and gentlemen, is the LONG-TERM jar. The money in this jar is for bigger purchases only which could be your next vacation, a car, your emergency funds etc. Take note, the 10% of your income here only works when you have a long-term goal which is why this is the jar where you need to accumulate your money until it’s enough for your big purchase.

Jar #4 EDUCATION

The sole purpose of this jar is to educate you and make yourself better which is why it’s important that another 10% of your income goes here. Remember, you are your own best asset so don’t be shy to spend money on self-improvement books, coaching, extra courses or mentoring. Invest in yourself so you too can be worthwhile! (For students, your textbooks money does NOT come from this jar but instead the NECESSITIES jar, okay?)

Remember Willy Wonka’s Golden Ticket? And how it ultimately changed Charlie’s life for the better? Luckily for you, this jar is YOUR Golden Ticket. The FINANCIAL FREEDOM jar is 10% of your income and its main objective is for you to invest your money into stocks, mutual funds, real estate, and business acquisition. Warning! Do not use this at all until you are financially free and you are only financially free when you make your desired yearly income without having to work. The FINANCIAL FREEDOM jar is also great in the cases of unforeseen circumstances such as losing a job or for personal medical conditions.

Jar #5 FINANCIAL FREEDOM

Remember Willy Wonka’s Golden Ticket? And how it ultimately changed Charlie’s life for the better? Luckily for you, this jar is YOUR Golden Ticket. The FINANCIAL FREEDOM jar is 10% of your income and its main objective is for you to invest your money into stocks, mutual funds, real estate, and business acquisition. Warning! Do not use this at all until you are financially free and you are only financially free when you make your desired yearly income without having to work. The FINANCIAL FREEDOM jar is also great in the cases of unforeseen circumstances such as losing a job or for personal medical conditions. Alternatively, download our SyncWealth app to help you get there with a clear and sound plan.

Jar #6 GIVE

The last jar is your GIVE jar and this is where only 5% of your income goes. This jar is for charity, for you to do good to others and give back. The amount is not important but the act is. Donate to your local shelter, help out the homeless. Remember, that by giving away money the universe will reward you by giving you back more!

BUT, WAIT!

These are just guidelines, not set rules! Adjustments need to be done depending on your financial circumstances so start by calculating your current income and amount that needs to be put into the 6 different jars. So even if you earn $5 per day, you can be part of this system too!

You may also download this chart for your personal use HERE.

References

  • https://www.harveker.com/blog/6-step-money-managing-system/
  • https://danielkarim.com/how-6-jars-can-make-you-rich-t-harvs-ekers-6-jar-money-management-system/
  • http://www.smartaboutmymoney.com/how-to-manage-your-money-using-the-money-jar-system/
  • https://readingraphics.com/the-6-jar-wealth-management-system-by-t-harv-eker/

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