The 6 Jars system is a simple way of picturing how to manage your money, take a look and consider if you could make it work for you and your family
 Necessity Account (NEC - 55%):This account is for managing your
everyday expenses and bills.
This would include things like
your rent, mortgage, utilities, bills, taxes,
food, clothes, etc. Basically it includes
anything that you need to live,
the necessities.
|
 Play Account (PLY - 10%):PLAY money is spent every month on
purchases you wouldn’t normally
make. The purpose of this jar is to
nurture yourself. You could purchase
an expensive bottle of wine at dinner,
get a massage or go on a weekend
getaway. Play can be anything your heart
desires. You and a spouse can each receive
your own play money, and not even ask
what the other person spends it on!
|
 Financial Freedom Account (FFA - 10%):This is your golden goose. This jar is your
ticket to financial freedom. The money that
you put into this jar is used for investments
and building your passive income streams.
You never spend this money.
The only time you would spend this money
is once you become financially free.
Even then you would only spend the
returns on your investment. Never spend
the principal.
|
 Education Account (EDU - 10%):Money in this jar is meant to further
your education and personal growth.
An investment in yourself is a great
way to use your money. You are your
most valuable asset. Never forget this.
Education money can be used to purchase
books, CD’s, courses or anything else that
has educational value.
|
 Long-term saving for spending
Account (LTS - 10%):
Money in this jar is for bigger, nice-to-have
purchases. Use the money for vacations,
extravagances, a plasma TV, contingency
fund, your children's education etc.
A small monthly contribution can go a long
way. You may have more than one LTS jar.
If you have more than one LTS, divide
the 10% between the jars according to
your priorities.
|
Give Account (GIV - 5%):
Money in this jar is for giving away.
Use the money for family and friends on
birthdays, special occasions and holidays.
You can also give away your time as opposed
to giving away money. You could house sit
for a neighbour, take a friend’s dog for a walk
or volunteer in your community or for your
favourite charity.
|
