The 6 Jars System has been seen to be a real effective helper for many people for its simple and feasible method. However, you may still have some personal questions about this concept. Understand you, I have answered some of the typical questions down below, if you have any further queries, leave them in the common and I will take care!
About The 6 Jars System
Now you may wonder why I suggest you use the 6 Jars Concept, why not other systems out there, right?
It’s because the 6 Jars Concept is relatively simple, useful, and suitable for everybody at every age. Besides, it has been witnessed to work effectively in real life.
The 6 jars were 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.
- Necessity 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%)
It would be really convenient 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 fact! It’s down below!
FAQs About The 6 Jars System
1. What Do You Do If Your Income Is Not Enough To Split It?
There are myriad statements or comments saying that “I would love to have this money management habit, but I cannot do it! I don’t have enough money coming in to split it“ and “My expenses are too high, there is no way I can afford to split my money into different accounts“.
If you also have the thoughts like those, then you are totally wrong. The matter doesn’t lie in the amount of your finance, it may require much time to save, but a small monthly contribution can go a long way! As well, the main point here is getting you to follow this method and create a discipline rather than not doing it.
2. What if my NECESSITIES require more than 55% of my income?
Again, I emphasize this term “Habit is more important than amount” for you to remember.
In fact, people tend to question this matter on the way to start with 6-Jar System. It’s important to know that the percentages given are the most suitable based on researched data but not standard, you can flexibly alter the proportions until they suit you the best. Consequently, if you can’t follow the suggested idea, just take an amount you can manage and start there. Nevertheless, as said before, we believe the habit of managing your finance is far more essential than the amount.
Besides, we know our customers, so we with all our compassion have developed an appliance that helps you solve every smallest problem with your money, the 6 JARS MONEY MANAGEMENT. Why don’t you try it out and receive benefits from it?
3. What should I do if I have a lot of debt to repay?
The problem is much simpler to handle than you thought! No worry, you still manage your money as usual as you have the LTS jar (Long-term Savings for Spending Account) to deal with your debt, however, always remember to pay the minimum.
If your EMI is so high or credit card outstanding amount is so high, then utilize your earnings in the following bucket in the order from the LTS account to Play Jar and the last one is Give jar. It’s more important that you keet the habit of a good money manager, once you focus on paying your debt than practicing that habit, you are likely to repeat the same debt pattern.
To create the habit first and pay down your liabilities, you may need help from our latest application 6 JARS MONEY MANAGEMENT!
4. If I earn passive income, how should I use this system?
If that is the only source of your earnings, then you can still slit it up in the same percentages as suggested above. However, if it’s just the added income supporting your regular income, then in case you want to accelerate the speed to reach your financial freedom, then you can put all of the passive one into the FFA jar (Financial Freedom Account). That’s until you hit your financial freedom number and are ready to live fully off of the passive income.
For the extreme advantages of the 6JMM app, I showed above, download now and try using it for your foreseeing financial freedom!