Struggling with money! Do you always meet this problem? Do you want to be financially independent but lack of methods and money shortage frequently disturbs your life? Learning to stick to a budget can be challenging for most people due to the lack of information and knowledge about money management terms. I’m here to introduce to you a secret to easily handle this financial stress: The 6 jars system. Follow this article, you won’t regret a chance to reach long-term wealth!
Why Should You Start Doing The 6 Jars Systems?
“If you show the universe that you can handle the amount of money given to you right now, it will give you more. If you mismanage your money, you will not get any more. Why should the universe give you if you cannot even handle the money you have right now.” This is just a way to say out loud the reason why you should control your money flow but that is where all the spiritual comes from. In the middle of myriad ways of controlling money flows out there, the 6 jars would probably be one of the best choices!
Why The 6 Jars Systems?
- Because the habit is more important than the amount.
“I’m not earning enough money”: this is the way people tend to think. But in reality, all problems come from the fact that your money is not well managed. I’m not saying that you have to put a specific money amount into your accounts every day. I can’t tell you to put $1000 into your bank daily because if you earn $100,000/week, it may be possible, but what if you earn $1/week? Fortunately, regardless of how much you earn, this 6 Jars System is always effective. How? Discover below!
2. Because the fastest way to do well with money is to manage your money well.
As I said before, the way the universe works is if you manage your money, you will get more of it. The most efficient way to deal with money is to manage the money you have well. Show the universe how smart you are in managing that $1 you earn, then you will see the miracles.
Manage your money well is the key factor to truly become financially free. So stop wasting your time! Declare your intentions of turning your finances around and decide right now that you are going to get 6 jars and start managing your money today!
The 6 Jars Money Management Method
The 6 jars system was developed by T. Harv Eker, which is a relatively simple system to understand and is suitable for everyone. Basically, according to the concept, you divide your money into six different accounts, or jars, in which you put a certain percentage of your money. Each one contains a specific purpose gear towards reaching financial freedom.
Let me specify how the system is set up and the names of that 6 separate jars:
Necessity Account (NEC – 55%)
This jar is for all of you necessary expenses and bills including things like your rent, mortgage, car payment, food, clothing, insurance, taxes, etc. This account contains 55% of your money and only lives on that amount. If you need more than 55%, it is time you cut down on your spending.
Financial Freedom Account (FFA – 10%)
This jar is the ticket to your freedom. These funds should be allocated for investments and building your passive income streams. Every time you receive your money, put 10% of it into this account, regardless of how much you make. Think stocks, mutual funds, real estate, and other long-term investments. You may decide to redirect your returns into other jars, but you should never spend your principal amount.
Long-term saving for spending Account (LTS – 10%)
The purpose of this jar is for future and larger expenses, which saves 10% of your income. Money from this account will go towards more luxury things such as vacations, new cars, new houses, and contingency funds, etc. You may have more than one LTS jar, then divide this 10% according to your priorities. Keep in mind, these items usually require more time to save, but a small monthly contribution can go a long way. This jar is also very important when your retirement time comes so do not bother, save now and spend later.
Education Account (EDU – 10%)
Money in here is meant to further personal education. You are the most valuable asset, so an investment in yourself is never expensive so always remember to spend 10% of your finance on this jar. You will keep moving forwards and never lose when investing in better knowledge and skills. If you stick to the system you’ll find you’re going to have more freedom and wealth.
Play Account (PLY – 10%)
Every month, PLAY money is spent on purchases you would not ordinarily make. The goal of this jar is to help you take care of yourself. You might go on a weekend vacation, have a massage, or buy a nice bottle of wine for dinner. Play may be whatever you want it to be. You and your spouse may both get their own play money, and you don’t even have to inquire what the other person does with it!
Give Account (GIV – 5%)
This final jar is for giving away. Many of us often forget the name of this account, however, it is relatively essential. You are better at managing your finance, so give away your time and money to help others. Donate to support those in need, or just buy a present for your friends or parents on a special occasion. Giving encourages others to give, and you are making the world a better place.
Up to now, you may have lots of questions about this system, we have answered some typical ones in The 6 Jars Money Management To Secure Your Long-term Wealth. If you have any further doubts about the process or our application, comment your questions below!
An Appliance That Applies 6 Jars Systems: Short And Easy Way To Success
Reading through my article, you must realize how useful the system is. Imagine how amazing it is if there is an application that recapitulates all of these 6 jars to help you deal with your financial stress. And actually, THERE IS AN APPLIANCE like that in reality! Understand your situation, we have designed this appliance as friendly assistance to help people manage their money well, which is called 6 JARS MONEY MANAGEMENT. You should absolutely try it out and believe me, the result would always be as your desire!