The brutal truth of why your money management sucks and how the 6-JARS System can rescue you from the financial abyss.
I sat at my office desk wearing a crisp white shirt, shaking my left leg under the table as I always did, chewing on the cap of a Bic ball point pen and staring at the email notifications pinging up on my computer screen. The year was 2017, and as a 20 something year old professional, I was taking huge strides up the corporate ladder in the small but steadily growing software company I was head-hunted by.
I’d just received news that I had achieved my biggest dream; a promotion to Group Marketing Director.
As I rushed my eyes over the email, flicking from left to right, and my leg shaking under the table at an increased rate, my heart pounded in my chest with excitement as I unveiled the new responsibilities I’d undertake.
Just as I was about to share the news with my team, I was stopped dead in my tracks.
The numbers three, nine, zero, zero, zero stood out to me inside the email.
£39,000 per annum….
This was only a £2,000 per annum salary increase for me.
The excitement drained from my body, this is didn’t make sense…
How could I only be worth a £2000 increase in salary? How was this going to help me clear my debts? How was this supposed to change my life?
This wasn’t how I envisioned it being when achieved this goal!
But it was at this moment that I realised THREE important life lessons:
1. The corporate ladder is not going to transform my life, I need control of what I earn and where I spend my time
2. Relying on earning more money is not the way to get out of debt, managing my money is
3. Problems need to be tackled NOW, not ‘when I get to X’
Discovering these 3 lessons pushed me onto a journey of self-development, growth and entrepreneurship, with my first ever move being attending the Millionaire Mind Intensive by Success Resources.
This is where I uncovered the secret to stop money slipping through my fingers and how to take control of my financial chaos. This was the wake-up call that I needed!
I want to share with you the incredible money management method that I was taught that can help you achieve financial freedom. It’s known as the 6-JARS System.
Step 1: Understand the 6-JARS System
The 6-JARS System is all about splitting your income into six different accounts.
Here’s a breakdown of the ‘jars’ and the percentage of your income that should go into each:
- BILLS/NECESSITIES (55%): This jar covers your essential expenses like rent or mortgage, utilities, groceries, and transportation.
- FINANCIAL FREEDOM ACCOUNT (FFA) (10%): This jar is your ticket to financial freedom. Save 10% of your income here.
- LONG-TERM SAVINGS FOR SPENDING (LTSS) (10%): Save for larger expenses or investments in this jar.
- EDUCATION (10%): Invest in your personal and professional growth with this jar.
- PLAY (10%): Fun money! Treat yourself with 10% of your income here.
- GIVE (5%): Contribute to charitable causes and make a positive impact on the world.
Step 2: Start the Habit, Regardless of Your Income
Now, you might be wondering, “What if I don’t earn a lot of money?” or “My expenses are too high.” The beauty of the 6-JARS System is that it’s about developing the habit rather than focusing on the amount. It’s not about depositing $1,000 daily. No matter your income, this system can work for you. Even if you’re earning just $1 a week, you can get started.
Step 3: Why Manage Your Money Well
Managing your money well is a key factor in achieving financial success. The universe responds to your financial management skills. If you prove you can handle a small amount, you’ll receive more. Miracles can happen when you start showing the universe you know how to manage your money.
Step 4: Take Action Now
Decide today: Are you ready to implement the 6-JARS System and start managing your money effectively? Declare your intentions to the universe and let us know how it goes.
Frequently Asked Questions (FAQ)
1. What if my NECESSITIES exceed 55% of my income?
This is common when starting with the 6-JARS System. Remember, the percentages are guidelines, not strict rules. Focus on building the habit, even if you can’t follow the percentages precisely. Start with an amount you can manage, and gradually increase it over time. The habit is more important than the amount.
2. What do I do if I have a lot of debt to repay?
You should still manage your money using the 6-JARS System. Use your LTSS jar to pay down your debt while always paying the minimum. Managing your money is a habit, and it’s crucial to establish this habit before completely paying off your debt to avoid repeating the cycle.
3. If I earn passive income, where should I be putting that?
To accelerate your path to financial freedom, keep your passive income in your FFA jar until you reach your financial freedom number. Calculate your financial freedom number to determine when you can live off passive income.
4. What about credit cards?
Credit cards can be helpful after you’ve developed the habit of managing your money. If you have a history of credit card debt, avoid using credit cards. Only use them if you pay the balance in full each month. Categorise your credit card expenses into the appropriate jars, and make payments accordingly.
Are you ready to take control of your financial future? Start using the 6-JARS System today and watch the magic happen.
It’s not about the amount; it’s about the habit!
If you have any more questions, feel free to drop a comment or message me using the form on this website.
And if you want to set serious goals in your life and business and begin living your dream schedule today, before you achieve your goals, make sure you check out the SHOP on this website where you can get access to 2 ebook that will change your life, as they have for hundreds of other entrepreneurs around the world.