Manage money with six jars

Many people not being able to manage money. Without good management, we could broke and become poor. Harv Eker, an author businessman and motivational speaker has introduced the ‘world’s simplest, easiest and most effective money management system’ using ‘Six Jars’ method.
Read this on how the system works :

Jar 1 : Necessities
– You need to put 55% of your income into jar 1. You need to use for necessities such as paying accounts, buying food and clothing. Simplify your lifestyle and target the 55%. Most suitable account for the Necessities jar is a current account. It is ideal if you are earning a monthly income and make regular payments, such as rent, a mortgage bond or repayments to finance a vehicle. Such an account allows you to transact and manage your finances using your bank’s branch, an ATM, the internet or cellphone banking.


Jar 2 : Play
– 10% for your Play jar. It is important to feel good about having money and spendint it.If you need to save up for things such as short getaways that require a little more money, you can accumulate the funds over few months.

The most suitable account for the Play jar, Eker says, is a transmission account. It has low transaction costs, but it does not offer you access to credit or cheque-book facilities.

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Jar 3 : Long-term savings for spending
– Put 10% into this jar. The money in can be used for major expenses, such as your children’s education and buying a house, and for building up a contingency fund.

The most suitable account for your long-term savings jar is a notice account, Eker says. In this account, money cannot be withdrawn immediately – instead, notice of usually between 30 and 180 days has to be given to the bank. The interest rate is normally higher than for other savings accounts.

Jar 4 : Financial Freeedom Account
– Put 10% into your Financial Freedom jar. This is your golden goose, Eker says. You must never spend the money that you put in your financial freedom account. This is to provide an income in retirement. (This 10% should be over and above what is coming off your salary to go into a retirement fund. If you are not contributing to an employer’s retirement fund, you should be saving at least 15% of your income for retirement – Editor.)

The most suitable savings vehicle for this jar is a collective investment scheme such as a unit trust or exchange traded fund where you receive above-inflation returns over the long term. To enjoy tax deductibility on your contributions, you can save into a unit trust retirement annuity, in which you cannot withdraw savings until you are 55 years of age.

Jar 5 : Education
Put 10% into your Education jar. The funds in this account are for your education, such as books, online courses and seminars.

– The most suitable account for this jar is a notice account.

Jar 6: Give
– Put 5% into your Give jar. Use this money for donations to charities, or to help someone in need. If you are financially stressed and feel that giving money away is not in your best interest, you can give of your time for a worthy cause, Eker says. A transmission account is best for your Give jar.

Eker says the percentages for each jar can be adjusted to suit your preferences and affordability, but each jar should be used for its purpose.

Source :-


At the end of every month, you check your bank account balance, and your heart
Going shopping in supermarket will slash money than your budgetting if you not properly plan.

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