This JARS Money Management System Can Work Miracles For You Reading Time: 7 minutes July 1, 2020 By T. Harv Eker 114 Comments At my Millionaire Mind Intensive course, and in part of my book Secrets of the Millionaire Mind, I teach a very effective money management method— designed specifically to get you to financial freedom. It’s called the JARS money management system. Basically, using this system, you split your money up into six different accounts, and you have percentages of your money to put into each account. You can use bank accounts or actual jars. So what are these jars and what percentage of your income goes into them? Let’s take a look… The 6-jars system is one of the many strategies I highlight in my free webinar, The Fastrack to Freedom. Click here to watch my FREE training and discover the 8 critical elements to becoming financially free quickly! So why should you start doing the 6-JARS System? Reason #1 — Because the habit is more important than the amount. Right now you may be thinking, “I’m not earning a lot of money” or “my expenses are too high.” Am I saying you have to put $1,000 into your accounts every day? No, I didn’t say that. How come I’m not suggesting a specific amount but certain percentages? It’s so that every single person, regardless if they’re earning $100,000 a week or $1 dollar a week, can follow this money management system. Yes, if you are earning $1 dollar a week, you can do this system. If you still can’t find the answer you’re looking for, jump to the Frequently Asked Questions below, or leave a comment at the end of this article! The habit of managing your money is much, much more important than the amount. Reason #2 — Because the fastest way to to do well with money is to manage your money well. Here’s the thing… The way the universe works is if you manage your money, you will get more of it. If you mismanage your money, you will not get any more. The fastest way to do well with money is to manage the money that you have well. Just show the universe you know how to manage $1. Then watch what happens in your life. Miracles do happen. Decide right now: Are you going to get 6 jars and start managing your money today? Declare your intentions to the universe that you are going to turn your finances around right now and let us know how it’s going. Managing your money well is one of the key ways to truly becoming financially free. But there’s much more to learn… The fastest way to do well with money is to manage CLICK TO TWEET your money well. Frequently Asked Questions (FAQ) 1. What if my NECESSITIES is more than 55% of my income? This is very common when first starting with the 6-Jar System. It’s important to understand that the percentages we give are recommendations and ultimately goals for you to get to… not definitive rules. We believe the habit of managing your money is far more important than the amount, so if you can’t follow the percentages to the tee, then take an amount you can manage and start there. For example, $100 a month. Use the jars to split up that $100. Then the next month do $150 then the next month $200. One time we had someone start with one freakin’ dollar! Guess what? She’s a multimillionaire now. Again, the habit is more important than the amount! 2. What do I do if I have a lot of debt to repay? You still manage your money! You’d use your LTSS jar to pay down your debt. And always always, always pay the minimum. Managing your money is a habit… and so is going into debt. It’s important to understand that if you pay down all your debt first before you are in the habit of managing your money, this most likely will result in a repeat of the debt pattern. But if you can create a habit of managing your money first and then pay down your debt while managing your money, you’ll have a higher chance of staying out of debt in the future. Good or good?! 3. If I earn passive income, where should I be putting that? If you want to become financially free quicker, you should keep your FFA jar money with your FFA jar. That’s until you hit your financial freedom number and are ready to live fully off of the passive income. Find out how to calculate your financial freedom number here. 4. What about credit cards? Credit cards are great to have AFTER you are in the habit of managing your money. If you’ve been a person who is constantly in credit card debt, you should NOT use a credit card. If you pay your balance each month, well, then a credit card is a very useful tool to have, especially the ones with great rewards programs. Again, only use this strategy if you pay your credit card in full in each month. Put everything on one credit card. Then when you receive each monthly statement, go through the transactions and with a pen, mark which jar each charge should be paid from. For example: Water, gas, sewer charge (NEC) Champagne to celebrate (PLAY) Books / Online Courses (EDUCATION) Add up those charges on a jar-by-jar basis, then simply transfer the amounts owed from each “jar” bank account into the account you pay your credit card with.
