The first and foremost step to becoming financially stable and independent is always managing money well. Nevertheless, it seems like a stressful task to many of us when coming to handling cash flow. Though keeping the long-term financial goals in one’s mind is hard, there are several solutions to help you deal with it. Fortunately, the 6 Jars Rule together with our latest app is relatively developed for you, which is really friendly and helpful in planning, reminding, and accelerating you to cultivate good money habits.
Money Management: Using The 6 Jars Rule
The miracle rule of 6 Jars was introduced by T.Harv Eker in the famous book “Secrets Of The Millionaire Mind”, by following it you will quickly reach your financial freedom. It is a relatively simple and friendly concept that everyone can understand and apply, that’s why it’s such a popular way of controlling money flow nowadays.
The idea of this system is simple: separate your income into 6 different accounts for specific purposes. You can also use physical jars, envelopes, etc., and label them accordingly. The most important thing is to consistently deposit into these jars or accounts as follows:
Necessary Accounts (55%), Financial Freedom Account (10%), Long-term Savings for Spending Account (10%), Education Account (10%), Play Account (10%), and Giving Account (5%).
Every one of these jars is essential and you should put your money into them as the following percentage, regardless of how much you earn. Over time, you will watch them continue to grow on your journey to financial freedom.
What Needs To Be Remember?
There is one important thing we should always keep in mind while using this version of the percentage-based budget is that the percentages are, to quote Eker himself:
“Recommendations and ultimate goals for you to get to… Not definitive rules. We believe the habit of managing your money is far more important than the amount, so if you can’t follow the percentages to the tee, then take an amount you can manage and start there.”
And, as Eker mentioned in the statement above, I believe it is a concept worth mentioning because everyone’s financial circumstance is different.
But I’d like to add my own personal take on what Eker said because not only is our situation different, but it’s also possible that our Necessities will cost us more than 55 percent at first, and we’ll have to work our way down to that kind of number over time, but our goals and dreams are also different.
Additionally, what we value in our expenses is different from the value we get from our expenses. So, when it comes to the 6 jars budgeting technique or any other percentage-based budget that you come across, I believe what we really need to be thinking about is what are we trying to get out of our money.
Once we understand what we want to gain from our money and what we believe is worthwhile to spend money on, we can divide our own percentages and maybe automate budgeting based on those percentages as best as possible so that we can achieve our own objectives and live the life we choose.
Don’t worry about the first steps or how to get started with the 6 Jars Rule because it’s so simple and so easy to apply!
Decide Right Now: Are you going to get 6 jars and start managing your money today?
Throughout my article, you must realize the importance of the concept. To make it easier and clear for you who are finding a way to manage money, we have released the 6 JARS MONEY MANAGEMENT application with the latest utilities and the most simple way to approach. Download here and try it out. Trust the process!