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.
[ad#Google Adsense-2]
The six jars are to be labeled as:
- 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.
Great description of the jars suggested by T. Harv Eker. This can also be done by using 6 bank accounts if you prefer to not use cash. Or you can divide it up in a spreadsheet type program. What is most important to is to track what you spend so you have more information and make sure that you are spending the money as you designated it in the jars.
🙂
Thanks for the great article
T. Harv is a genius. I’ve been using the jars system for a while now and it really helps keep me on point. I’ve created http://www.jarscalculator.com help people quickly figure out how to alowcate their money into the different jars.
Take care,
Evan
Melanie, yes, i think i’ll go with the 6 bank accounts. however, the jars are very good at motivating. we get to see them filling up to the brim. Perhaps that’s a good way to start, so that it becomes a habit. By the way, i took a peek at your transform site. Pretty interesting site you got there. Will certainly have a second, third, and more detailed visit over there soon.
Evan, yes, I agree with you. Harv is a genius indeed. I’ve just started using them jars this month. I’m starting small. Need to take a step back and have a re-look at my necessities before the end of this month and calculate the percentages for them jars. Thanks for the link to your jarscalculator. Pretty handy tool you got there. Thanks.
Thanx for taking a look at my site!
This is my passion- helping people with their money and having power and freedom with it!
http://www.transformyourmoney.com!
i am hopping that with very hard work on Affiliate marketing, maybe i would be able to achieve Financial Freedom in 2 years time.,;”
Check this out: http://www.sixmoneyjars.com
I checked your suggested site to do effective money management but not active anymore. I’m using this great website called “6 money jars” that also allows you to change jars percentages if you would like to: http://www.sixmoneyjars.com It also has an affiliate program to help you earn money referring their “pro” version in which you could use even better tools to do effective money management!
Bye!
Thank you so much for posting this information. The 6 jars method of money management and much more is taught at really great event called “the Millionaire Mind Intensive” If you are interested in attending a Millionaire Mind Intensive in a city near you Click here to register now!