The 6 Jars Of Money Management System

janeiro 15, 2023

Stop procrastinating Manage your money today with T. Harv Eker’s Money Jar System, you will be surprised that improving your relationship with money has never been simpler!

Life is difficult for many people when they are stuck in the same old routine with bills, working hard from 9 to 5 but cannot manage a vacation because their debts keep growing bigger and bigger. But too often people hardly realize that financial issues do not come from running out of money. However, financial stress is a result of not knowing how to manage money well.

So stop wasting your time, and remember that spending money is not as important as keeping money. And if you still do not have any ideas on how to start planning your budget, here is a little magic to help you become a successful money manager: The Money Jars System of T.Harv Eker

The Money Jars System

The Money Jars System is suitable for everyone, no matter how much money you have. This system is simple and easy to start and it has worked for hundreds of thousands of people’s lives over years. All you have to do is to divide your money into 6 categories for specific purposes:


1. The first jar

The first jar is your living jar, called Necessities (NEC): put 55% of your money into this jar. This amount of money is for food, mortgage payments, bills, gas, insurance, etc… If you need more than 55% of your money to live on, it is time you cut down on your spending. For example, open your closet and make use of your last season clothes instead of buying new ones; try riding a bicycle when you do not have to go too far as you know that oil price is higher than ever. It might seem difficult at first but once you get used to the jars system, you will find it possible to live on 50% or even lesser! Or if you cannot spend less, you will have to find ways to earn more.

2. The second jar

The second jar is your freedom jar, you can put a label on this jar as FFA (Financial Freedom Account). Every time you receive your money, you will put 10% of it into this jar. This is your most favourite jar as it will only grow bigger and you MUST never spend money on it. You will use this amount of money for investment as you know there are Three Pillars of Wealth: real estate, businesses and the stock market. In economics, these are also called assets and the goal of investing in assets is that eventually, it will create enough Passive Income for you even when you are not working. You may consider this FFA jar as your golden mother goose that lay your precious golden eggs. Therefore, never kill the goose and only use the eggs when you are not working. The more you put on this FFA jar, the more you will have in the future.

3. The third jar

The third jar is where you put 10% of your money for Long Term Savings For Spending (LTSS). The purpose of keeping the money inside this jar is for future expenses. Do you want to go to Europe next summer? Your child is going to college soon? Better save from today. Monthly savings can add up to a big amount later. This jar is also very important when your retirement time comes so do not bother, save now and spend later.

4. The fourth jar

The fourth jar is called Education (EDU). Remember that education is never expensive so always invest 10% of your money in this jar. This money is for you to grow yourself, you should take any course or workshop which you are interested in. You never lose when you invest in growing your knowledge and skills better. Keep moving forward!

5. The fifth jar

Now, this jar is very interesting as its name is the Play Jar. How often do you have a fancy dinner? Do you want a weekend getaway? Now as you have been working hard all month, you should really give yourself a little reward. Remember, use up money in this jar every month to prevent playing too much or not playing at all. This jar might help you improve your standard of living as your income increases.

6. The sixth jar

And the final jar is the jar too many of us often forget which is named the Give jar. As you are much better at managing your financial account now, take time and money to help others. Donate and help people who are in need or simply just buy your friends or your parents a gift on a special occasion. Giving inspires giving, you are making this world a better place.

T. Harv Eker said: “ Money doesn’t buy happiness, but it can buy FREEDOM: freedom of choice, to be able to do what you enjoy doing and not be forced to do things just because you need ’the money”. Now take the first step, stop asking where your money went and start telling it where it has to go.


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