I learnt about the money jar system created by T. Harv Eker when I attended a weekend conference in Germany in 2014 and the experience has armed me with a way to save that is so practical and completely effective.
The Money Jar System
It is basically a system of saving money for the short, medium and long term divided into the following money jars:-
- FFA: You save 10% of your income for investing in your financial freedom and as a means to create a passive residual income.
- PLAY: Have you ever heard of, ‘Pay yourself first’? Well here, you are encouraged to spend 10% of your income on anything you want for yourself.
- LTSS: You save 10% of your income to spend on things like a new car, a holiday, gifts, tv etc. This is for the short to medium term. However, if you are in debt, then allocate half of this money saved to pay off your debt.
- EDU: Allocate 10% of your income to educating yourself by paying for training, tools and resources. Learn more here: Financial Freedom Training
- GIVE: In this case, you allocate 5% of your income to giving to charity this is to activate the law of sowing and reaping.
- NEC: This is for your necessities like your utility bills, transport and food and you should allocate 55% of your income to it. The motivation is for you to learn to live within or below your means until you come to a place of financial freedom.
Please note that all this should be done on a monthly basis and no amount is too small. You’ll find that once you’ve formed the habit you will well on the road to your financial future.
Also bear in mind that these jars can be bank accounts as well as jars.
Want an easy and inexpensive way to fill your money jars on the road to financial freedom? Click the link to learn how and take action here: Creating Money Jars
You might have a great job, with great perks and a salary that allows you to pay your bills and invest in your money jar system. However, if that’s not your situation, what are you prepared to do about it? Do let me know in the comment box below.