Money Jar system - A life saviour for All

Darryl Bachmeier
Jul 18, 2020
Finance


Life is a roller coaster and no none knows what comes next. Urgency, pressing requirements, and emergencies keep coming every now and day. No matter what the situation is, the requirement of money is always at the back end. If you are not saving oriented, then such a situation can put enormous pressure on you. On the other hand, if you think you need some guidance on how to save money then you have reached the right spot. The article discusses 6 main points on money jar system, which if adopted can help any person during the dire need of money without having to worry about anything else.

Concept behind Money Jar System

This system is very effective and easy to be managed by everyone. Same has even worked for several people in different wats. It is simple as dividing your jar into six main categories for fulfilling specific requirements/ purposes.

The First Jar- Necessities

Name your first jar as “NEC”, means necessitates or living jar. You need to put at least 55 per cent of your total money in the jar. The money is meant for meeting basic needs like utility bills, food, insurance, mortgage and other payments etc. If at the moment half of your money is going to this jar, then it’s time to squeeze in the spending pattern. For instance, rather buying new clothes, for time being use the already available options in your closet. Either walk or use a bicycle instead of taking a car to work. In the first few days, you might find it difficult to handle and work on but with time, you will get used to it. This is how things go, decrease spending and accordingly increase your earning.

The second Jar-Financial Freedom Zone

The second jar is called FFA, i.e., Financial freedom account jar, which is the start of your saving. You just have to put 10 per cent of all your earnings in that jar. The amount is not fixed rather percentage has been kept one. Whatever you earn at the end of the day, you put 10% of that in the jar. This will eventually become your pillar of wealth and at some appropriate level, you can take benefit from this golden goose’s egg every day.

The Third Jar-Long term spending

This jar is called LTSS, i.e., Long Term savings for meeting any spending in future. This jar also contains 10 per cent of your money, but it is different than the jar 2 because you put money for meeting any long term plans or spending. This could also cover your next years’ recreational plans. For instance, you plan to have holidays in Europe with your spouse and you put up a third jar for saving purposes. On the other hand, the same jar can also be a good option for meeting any emergency when you are in dire need and act as a cushion after your retirement.

The Fourth Jar- For Educational needs

For education requirements, you need to keep one jar as well. Here you will also put 10 per cent of your earning. Since education is not that expensive so the extra money can also help you prepare, groom or take any extra courses, diplomas or workshop which you think can broaden your horizon. Keep in mind, whatever you invest in this jar will never be lost and will always be prominent in your daily conduct.

The Fifth Jar-For Play purpose

This jar can also be called as a playtime jar which you need to see once a month. The importance of jar is enhanced at the time of your birthday or when you plan to have good food/dinner with your spouse. You work all day long and never get time to give to your friends. So one fine evening you plan to have a good time and take your family for a good dinner. So this jar can also help in improving your standards of living. You can also buy something new for the home, some painting, décor or change colour or curtain of your living room etc. So with an increase in your income, your standard of living also improves.

The Sixth Jar- Giving away

This jar is probably the most essential from the humanity point of you. We all come across some people who need assistance and help for meeting their every day, occasional financial needs. When you take out money from this jar and hand it over to someone, you will be elevated in the eyes of divine power and you will also get satisfaction at the end of the day. This way you will also help someone in improving their living standards and fulfilling their pressing requirements.

The above-mentioned jars can be named as suits your requirements. Idea is to have a mean to manage and sustain yourself without having to rely upon or worry during any hard time. life is full of ups and downs so you need to prepare yourself for what lies next.

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