Manage Money By The Method of 6 Bottles of Personal Financial Jars

Financial management, money management is always one of the many issues of concern. Today’s topic, we will learn about the method of Money Management by the method of 6 bottles of personal financial jars . Invite you to welcome reading.

1, WHAT IS THE METHOD OF 6 BOTTLES OF PERSONAL FINANCE?

This is a money management method created by T.Harv Eker. He is a person with extensive experience and expertise in the fields of economics, business, finance and people. Thanks to his experience and knowledge, he created this effective money management method. The 6 financial jar method is also known as JARS.

His introduction of six financial jars to help people manage money, know how to use their finances more effectively in spending, saving daily. From there they can use their savings to make more profitable business investments.

This method is simulated by using 6 jars that represent each of the various revenue and expenditure savings. When looking at each jar, we can know what this money is used for, how to spend it so that it is not wasted, how to save it to have more money.

2, JARS METHOD – METHOD 6 FINANCIAL JARS

The content of this method will require you to divide your income into 6 different parts, symbolizing each jar. Each jar is a different source of expenditure that does not connect to each other. The amount divided for each jar is not the same but it depends on the contents of the bottle. For example, a long-term savings bottle needs to give up 10% of your income here every month. Vials for daily essential consumption need 55% of monthly income ….

Setting the corresponding amount for each jar is not necessarily the same for each person. Depending on the need, how much of each person ‘s income each month wants to split the income into. The goal of Mr.Harv Eker is to help create an effective saving and using habit for each individual.

Next we will go to each part of the financial jar to better understand.

1, ESSENTIAL JARS – NECESSITY ACCOUNT – NEC – SAVE 55% OF INCOME EVERY MONTH

This is the one that needs to spend the most of each person. The need to spend on daily life is indispensable. We need to eat, drink, need to spend money on items such as electricity, water, house rent, telephone, food, gas, travel costs, ….

Many people who make salaries are only enough to spend on this item. But with this method, T.Harv Eker advises us to try to use up to 55% of our income each month, if possible, the better.

If your monthly income does not allow you to spend only 55% of your income each month, the best way is to reduce unnecessary expenses, or use discounted goods instead. to save costs. In addition, you also need to find more jobs to increase your income, such as finding more jobs, looking for work at night at home …

The first time will be difficult for you to adjust your spending so that it is only 55%. But gradually you will build a reasonable spending plan for yourself.

2, EDUCATIONAL FINANCIAL JARS – EDUCATION ACCOUNT – EDU – 10% OFF YOUR MONTHLY INCOME INTO THE VIAL

Investing for yourself is the safest and most effective investment. Therefore, we cannot ignore spending part of our own income each month to invest in our own education and development.

You can use the money in this financial jar to register for an English, a Japanese class or learn a certain skill. Or simply buy more books to study, register for online courses, attend seminar seminars …

You do not need to use the money in this financial bottle every month, but it can be used to accumulate it at certain times to get the best results.

3, FINANCIAL JARS FOR FINANCIAL FREEDOM – FINANCIAL FREEDOM ACCOUNT – FFA – SHOULD USE 10% OF INCOME EACH MONTH.

With this financial freedom fund, you can use the money you save in this financial vial to make a profitable investment. There are many investment channels you can refer to: real estate, finance, business, securities, buying gold, saving …

However, in the beginning, you may not have much money to participate in the highly profitable investment channels. So the safest plan for you is to send money. You should send it on a regular and long-term basis to enjoy a high compound interest, in order to bring high efficiency in the future.

If someone is your friend or relative doing business, you can also contribute capital to make a profit. There are many ways we can invest profitably from this financial vial. At first you can only put in this bottle 10% of the income, but gradually you should increase this amount more to quickly invest.

4, GIVE THE FINANCIAL BOTTLE – GIVE – USE 5% OF INCOME

One of the secrets of getting rich, the secret of success of billionaires in the world learns to give. For them to succeed does not mean that they earn a lot of money, but they contribute a lot of value to the community and society. That is also the content of the next financial jar.

Each month you will extract 5% of your income to do useful things, help those around you. It is not necessary for us to go to charity, to do really great things that simply means that we help our family members, help our friends when they have difficulties.

Use this money in a useful way to bring the most value.

5, LONG-TERM SAVING FOR SPENDING ACCOUNT – LTSS – GIVE 10% OF MONTHLY INCOME TO THE BOTTLE

This is the bottle for your long-term savings. As the name suggests, “long-term savings” means that you must not touch this amount for a certain period of time with yourself. Each month you will deduct 10% of your salary to put in this jar.

This savings will help you make financial goals that require a large amount of money, such as buying a house, buying a car, buying land or need money to do something big. So, it is necessary to save such a money for a long time. You can increase the amount of money in this bottle every month, but not less than 10%.

6, ENJOY A FINANCIAL BOTTLE – PLAY – 10% OF YOUR MONTHLY INCOME

With this financial vial, you will use the money saved to take care of yourself and enjoy your life. You can use this money to travel, beautify, buy clothes, … Work also needs a break, so give yourself a chance every month to be able to relax and use this money. .

Hopefully, with the sharing of financial management methods with 6 financial jars, you can manage your money in a better way. Thanks for following this analysis.

Good Luck

If you find this article useful, please share it with everyone. You can also find business knowledge, how to get rich, what business is an effective start-up idea, how to make money with other products or ideas in the swiftblogging.com search section.

Leave a Comment

Your email address will not be published. Required fields are marked *