How to properly manage your money: "Six Money Jars"

I have been doing the "Six Money Jars" for a year now and it has created wonders in my financial life. I learned about it when I attended the "Wealth Course: Module 1" at Starbucks, Pearl Drive. 


They call it the simplest and most effective way of money management and I agree for the following reasons:


1.It is so easy children can do it too. 


2.Your money is segregated by accounts, specifically six. You have the FFA for business and investments, LTSS for long term expenses or luxuries, EDUC for workshops, seminars and books, NEC for daily expenses, PLAY for once a month or quarterly splurging and GIVE for donations, tights, loans.


3. All you need it to create a habit first before increasing the amount. I started the money jars by segregating P20 per week, then it grew to P100, up to 500, so on and so forth.


4. It's very flexible because it can be used for business. FFA for Business Improvements, LTSS for expansion needs, EDUC for employee developement, NEC for overhead cost, PLAY for company outings and gatherings and GIVE for Community Programs, Charity Donations, Feeding programs.


5. It create awareness of your Financial Status. The percentage of each account is so small that if you have a salary of P10,000 you can only invest P1,000.


If you want to learn more about the Money Jars log-on to http//www.ca2020.net(If it is your first time viewing the site put Coach Armand Cruz as the person who introduced you to it.)

The 5 simplest tips to manage your money

#1 Erase the concept of saving. Putting your savings in the bank gets you somewhere but it can’t get you far enough. Instead of saving your money in the bank and letting it sleep stagnantly, start learning about investing and business, find your investment of 50% and above interest in year and invest all your money there. Put in mind that if you put money in the bank, they really love you the most. Money +Bank= More money for Lending or More money for Stocks, in short you are the loser.

#2 Assign a set Structure. Have you heard about the “6 money jars”? 10% Business and Investments, 10% Long term Savings for Spending, 10% for Business, Investing , Success, Leadership and Personal Development Books/Workshops/ Seminars/Training, 50% for Necessities, 10% for your doodads and 10%`for giving without expecting anything back at all. Use this or Modify your own.

#3 Do it every day. Do the money jars every day, even if it would take a single peso a day. The habit is more important the amount. Amount of Money Manage=Short term, Habits you learn from Managing Money=Long Term

#4 Spend only Once or every Four months. These are the things that you spend for but are not really useful at all like vacations, movies, spas, video games, facial, massages etc. Unless you start practicing once a month or quarterly spending, you will always end up poor a few days after you receive your salary. This is in form of the 10% Play account.

#5 Give. It’s easier to give money than keep it. If you were earning money and you are earning around P1M every month flowing in your bank account or P12M, which is easier for you to do, manage the whole P12M or give a part of it away to make managing money easier?

Connect with you soon,

Armand Cruz

www.ca2020.net

“Empowering and inspiring people to take action for there dreams.”