One of the key factor that influences your healthy and wealthy life you long-term is your finance. It would obviously be necessary for anyone to realize its importance and practice good financial managing skills. The best way to assist you to achieve this goal is T. Harv Eker 6 Jars System.
How T. Harv Eker 6 Jars Works
Everyone from adults to young and kids can easily access this method in several ways. The 6 Jars System was developed by T. Harv Eker in the well-known book “Secrets of a millionaire mind”. Up to now, it’s been a really common method to solve problems relating to money management. It’s also been witnessed to work effectively with several people.
According to Eker, you start by taking your income and split it into six different jars based on the following percentages:
55% of your money goes towards the necessities jar which is for purchasing things such as food, rent, electricity, and recurring bills.
10% of your money goes towards long-term savings for a spending jar that will allow you to spend for things like your rainy-day fund, big-ticket purchases like a new car, vacations, paying off debts, and unexpected medical expenses.
10% of your money goes towards the play jar as Eker puts it or the fun and entertainment items such as spoiling yourself or your family and other recreational activities.
10% of your money goes towards an education jar which can be used for expenses such as school but also coaching, mentoring, books, and things like online courses.
10% of your money goes into what Eker calls the Financial Freedom jar and obviously, that goes towards things like stocks and mutual funds, bonds, passive incomes such as businesses and side hustles, real estate investing, and merely any other forms of investment you can think of as long as it helps you achieve your own Financial Freedom.
The final 5% of your money goes towards the giving jar which is apparently for charity, a friend, or a family member in need.
Who Would The 6 Jars Budgeting Method Work For?
The wonderful thing about these percentage-based budgets is that they can work well for almost anyone.
If you’re parents who are struggling with money management for your family life, then T. Harv Eker 6 Jars is made for you! You would also need help from other digital forms like this amazing 6 Jars App.
This method together with the 6 Jars App also works well with teenagers who are growing up with such a variety of expenses to make. Gen Z would appreciate it much due to its efficiency as well as its easy-to-understand organization.
It even works well with kids. If you let your children access digital devices soon, you should advise them to try this 6 Jars Money Management too!
Nevertheless, I think it would probably work best if you already have a reasonably clear sense of what you value and where your money is currently going.
Because the disadvantage of these percentage-based budgets is that they lack depth, at least in comparison to detailed budgets such as the zero-based budget.
So it is possible to lose track of where exactly your money’s going but this is less of a crucial issue if you’re coming into the budget with your finances already relatively under control and your values surrounding money already relatively understood.