Money management is one of the important aspects of developing your millionaire mindset. You need to successfully develop a certain money management habit into your monthly routine. One of the easiest method to manage your money is taught in the Millionaire Mindset Intensive by T.Harv Eker.
This easy millionaire money management system involves having at least 6 jars. The idea behind these jars is to burn into your subconscious a millionaire mindset about monthly money management. Once you’ve set the methodology a natural habit or your monthly routine, your monetary problems and worries will gradually disappear.
- Financial Freedom Account (10%)
- Long Term Savings and Spending (10%)
- Education (10%)
- Play (10%)
- Give (5% – 10%)
- Necessity (50% – 55%)
The percentage attributed to each jars above, represents the percentage amount of money which you must put into the jars every single month. All you need to do every month is to allocate a certain amount of money for the money management jars.
Remember, you need to turn this into a part of you. Make it your natural money management habit. Here’s a secret of the millionaire mind for you. In order to do this, you need to ensure that you do it every single month without fail. As such, you must start with an amount which you can really afford. You can even start with $1.00. You can certainly afford to spare a dollar for the money jars couldn’t you? Yes, just allocate a dollar a month to the jars to start with. Of course if you can afford to allocate more, the better.
So how do you use this basic money management system? Lets take a look at it now. To make calculations easy, lets say you are allocating $100 to the jars every single month. Here is how to break down the $100 into the jars:
- Financial Freedom Account ($10.00)
- Long Term Savings and Spending ($10.00)
- Education ($10.00)
- Play ($10.00)
- Give ($5.00)
- Neccessity (%55.00)
Once again, you need to turn this into your money management habit. Thus, allocate a monthly amount which you are sure you can afford. Start small. Managing small amount of money is easier. Raise the amount gradually as and when you can afford to add more. Do not fail to do it on a monthly basis.
Just do it. Go get yourselves 6 jars to manage your money with. I don’t know about the area where you live. I bought my jars at RM2.00 a piece. A money management method that costs just RM12.00, not bad.
Don’t worry about what each jars are to be used for. I’ll be covering each of the 6 money management jars and their usage in the next upcoming posts in this Millionaire Mindset series.