Last Updated on 2020-10-05 by Kassandra
Are you looking for an easy financial management system you can implement TODAY?
When it comes to saving money, it can be difficult without one. In this article, I’ll share with you the steps to implement a super simple & easy financial management system that I have successfully used for years.
The video below is short and to the point. If you would like more in depth explanation of this easy financial management system, I’ve shared a link at the bottom of this article.
Want to know where the post is I made reference to in the video below?
It’s right here.
Your Easy Financial Management System
(The Money Jar System)
STEP 1: Every time money comes into your life, split it up between these jars.
This can be your income from your job, birthday gifts, etc. Even money you pick up off the street. It doesn’t matter how small – just stay consistent.
STEP 2: Split up the money into the 6 different jars.
- Necessities (bills)
- Education
- Giving
- Financial Freedom Account (stocks, IRA, etc)
- Fun (must be spent every month)
- Long Term Savings For Spending (vacation, house, etc)
The base percentage is as follows:
- Bills – 50%
- Education – 10%
- Giving – 10%
- FFA – 10%
- Fun – 10%
- LTSS – 10%
Depending on your spending style and what your monthly required spending looks like, this can change. And if your bills are more than 50% of your income – you might consider seeing if there is any way to minimize your current spending.
For example – maybe you tend to spend a lot when you don’t need to nor intend to. Then you might have less in your fun fund and more in your bills or LTSS.
And that’s it! I use this system personally, and I thank T Harv Eker every time.
Still unsure? Got more questions? You can check out the full details here.
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