Realizing the “miracles” that the 6 Jars of Money brings back, you must be excited about the first steps to begin using the system. Below is the guideline to help you with it.
3 simple steps to get started with 6 Jars of Money
1. Know you percentages
You can’t manage your money until you know how much you make and how much you spend. Begin by estimating your present monthly income and the amount to be placed in each of the six jars. Then, keep track of how much money you spend each day. Simply becoming aware of your spending habits is a starting step in the correct way.
2. Change your mindset
Understand that money management isn’t about restricting your freedom, it is to create eventual financial freedom. Several years from now, you can be happily retired while your friends are still working hard to pay for their luxurious lifestyle. Constantly remind yourself out loud “I am an excellent money manager!”
3. Don’t entertain any excuses
It’s easy to say “I’ll do it tomorrow”, or “I don’t have time for it”. The big question to ask yourself is – how badly do you want to be rich and financially free? If you are serious about your financial goals, then no excuses should be permitted. Start NOW and stick to your plan.
There are many things that need to be remembered when managing money, so it would be really helpful if there is a digital form to support you. I recommend you the 6 Jars Money Management App.
Frequently Asked Questions (FAQs)
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 a practice 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.