Everyone would obviously desire to have a wealthy and happy life, but the fact is that achieve such a dream is not easy at all. If you are lack motivation and method, reaching that goal is a kind of impossible task. Thus, I’m here to provide you useful information and solutions for this problem, which is briefly expressed in the 6JMM with the 6 Jars Of Money Method.
How can you achieve wealthy life?
You may think earning a lot means being wealthy, but no. If your monthly income is high but you don’t know how to spend them wisely, your money left at the end of each month is still 0. Thus, you have none for your long-term life. Your solution is the 6 Jars Of Money Method.
The 6 Jars Of Money
According to the system, you just have to divide your money into 6 different jars like below:
1. Necessities Account (NEC – 55%):
This money should be spent only on real necessities like utilities, food, mortgage payments, transportation, mobile communications, insurance, etc.
According to T.Harv Eker, 55% of personal income is enough for that expenditure. But you may have the bewilderment that “100% might not be enough, now 55% is impossible”.
No worry, my advice is “calm down” as you can adjust the proportion, and you should also adjust your lifestyle to adapt to this amount of money then you’ll know 55% is more than enough! Besides, you still have money saved in other jars, as well, if you spend all your earnings on necessities, you can never improve your financial situation.
2. Financial Freedom Account (FFA – 10%):
Also known as a Wealth Building Account. This is the Golden Goose jar, where golden eggs are laid. It is accompanied by the financial principle of “Pay Yourself First”. It is referred to as your Passive Income. You have to keep the money in this jar and shouldn’t spend it. You may only utilize it to invest in areas with high returns and earnings.
3. Long-term Saving For Spending Account (LTS – 10%):
You should set away 10% of your income for large expenditures such as expensive cars and holidays. It can also be utilized as a rainy-day fund. If you are currently in debt, use half of the jar to pay off your bills.
4. Education Account (EDU – 10%):
It is also known as the “Personal Development Account.” You may use the money saved in this jar to further your knowledge by purchasing books or attending seminars in your field.
You should certainly invest in this jar because “As your knowledge rises, so does your money.”
5. Play Account (PLY – 10%):
Everyone wants to have a good time and have some fun in their lives. Traveling, eating delicious cuisine at 5-star restaurants, watching movies on weekends, or anything else may be fun. You will need to save 10% on this.
6. Give Account (GIV – 5%):
Finally, in the last vessel, according to the six-jar technique, it is essential to postpone just 5% of your revenue that will be used for presents to family and friends. In reality, it is very vital to make people enjoy themselves on a regular basis, not just during the holidays. And if “extra” money accumulates in this jar, you can donate it to charity: this is also the ethical and proper thing to do.
To apply these 6 Jars Of Money techniques in the easiest and fastest way, download our app 6 Jars Money Management (6JMM) right now! This is the app developed by our team Alan Al Voice Lab with the hope and enthusiasm of developing human well-being as well as assist people in achieving desirable life. It is always updated and improved to serve users the best. So why not use it and reach your wealthy life from today?