You might be tempted to wait until the end of the month after all your expenses are paid before you put any money into savings. If you do, don’t be surprised to discover there is nothing left to put in the bank. To handle this problem, you should definitely know and apply the 6 Jars Concept by T.Harv Eker!
6 Jars Concept: 5 Money Management Mistakes
1. Not Having a Budget
“One of the biggest mistakes people make is not having a budget,” Noel says. “A budget is a road map to financial freedom. If you don’t have one you are shooting from the hip, as far as your paycheck goes, and you’ll eventually shoot yourself in the foot.”
A personal budget does not exclude you from having fun. It’s just a method of identifying where your money should go ahead of time so you can make an informed decision about how you spend, save, and invest.
2. Impulse Buying
We’ve all experienced the experience of being unable to resist a must-have item. You see those beautiful shoes or the gleaming new miter saw, and they’re on sale right now, and you simply want to own them. Except that you didn’t need them before you entered the business. Try to take an hour to cool off before buying anything that wasn’t on your shopping list. If you still believe it’s a good investment and have some wiggle space in your budget, go for it. If not, simply walk by and save your money.
3. Not Preparing for Non-Monthly Expenses
You are aware of when your mortgage or rent payment is due. Every month, the power bill arrives at the same time. You’re probably very excellent at paying your bills on time, but if you don’t prepare for non-monthly costs, your budget might suffer. Anniversaries, birthdays, vacations, Christmas, and bi-annual dentist appointments may all sneak up on you if you don’t plan ahead of time. Noel recommends sitting down with your spouse and other family members and getting their input.
In this case, you may need help from a digital app to better prepare for non-monthly expenses. I highly recommend the 6JMM app for its helpful and amazing utilities!
4. Buying a New Car
You’ve probably heard that a new automobile depreciates the moment you drive it off the lot. That is correct. The typical new automobile loses 9% of its value the minute you sign on the dotted line, according to Edmunds. It is only worth 81% of its initial selling price after one year. Buying a lightly used vehicle instead of a new one might save you a lot of money.
5. Assuming Your Retirement Will Take Care of Itself
Depending on which personal financial adviser you ask, you’ll need between 60 and 80 percent of your pre-retirement income to maintain your lifestyle after you retire. The sooner you start investing toward your retirement, the better chance you have of reaching your retirement goals.
6 Jars Concept: The Most Effective Solution For Your Case
Controlling your finances can be a lengthy process requiring quite a bit of stubbornness. But in fact, money management doesn’t have to be such a troublesome task if you have the method of the 6 Jars System. The concept comes from the book “Secrets of the millionaire mind” by T Harv Eker, and its idea is really simple to understand. Basically, you just have to split all of your earnings into 6 separate jars, each of which will have a distinct function and serve a different purpose in your way to financial independence:
- Neccessities Account (NEC – 55%)
- Financial Freedom Account (FFA – 10%)
- Long-term Saving Account (LTS – 10%)
- Education Account (EDU – 10%)
- Play Account (PLY – 10%)
- Give Account (GIV – 5%)
6 Jars Concept: This Application Is All You Need
The process of making up the list is hard, anyway, the stage of following the plan and keeping it as a habit is even harder. The best solution for you is the “6 Jars Money Management App”.
Why choosing it?
This app not only satisfies users with its friendly designed look but also the other outstanding features that other money management apps don’t have! By applying the well-known 6 Jars System, it is absolutely effective with anyone of any age. Moreover, the app is also really simple to use, you just have to follow the instruction while using the app and over time, you will get to the successful final result!