~9~ SIX Jars Money Management System

Jars picture shared by Leo Quinn in her newsletter. I have modified the jars into small plastic drawers that reduce space and dust, steady and tidy.

I have learned something useful from T Harv Eker ~ Millionaire Mindset Intensive Seminar, Nov 07. It was about the 6 Jars Money Management System. For me, I practice " PAY MYSELF FIRST" and the Jars System helping me to have FUN and not too stingy about myself when it is time to PLAY and to GIVE. I have labeled my drawers like this:

• FFA - Financial Freedom Account 10% of my after tax income goes in here and is not taken out for anything other than investments to build my PASSIVE income. I will put something in this account everyday...even if it's my pocket change, something I pick up that looks like money-1 cent coins, buttons. The agreement that I keep to myself is NEVER NEVER NEVER empty the FFA drawer.
• NEC - Necessities - 50% of my after tax income goes in here and is used for necessities such as food, shelter, clothing, car etc...
• EDU - Education - 10% of my after tax income goes in here to be used to improve myself. Some people might spend more at the coffee shop than the education such as...books, tapes, seminars and workshops etc...that improve my wisdom and intelligent.
• LTSS - Long Term Saving for Spending - 10% of my after tax income goes in here to be used for down payments on houses or cars...big ticket purchases like furniture etc. I am having 2 of these drawers and put 5% in each.
• GIVE - Giving - 10% of my after tax income goes in here to be used for charitable contributions and GIFTS for others.
• PLAY - 10% of my after tax income goes in here for FUN! I will spend this money every month or at the most every three months. He suggests using this money to do or buy something a wealthy person would. It's up to me but make sure it's something that really makes me happy and is fun!

I am self employed and I will want another drawer labeled TAX in which I put 20% of my income before I divide up the rest to be put in my drawers. I started up my habit with RM1 and let's see how the precessions go.

Always remember ~ PAY YOURSELF FIRST ~ Wealth is a HABIT.