Have you ever wonder why you don’t have any savings or any investment? Even though you had worked in your company for a long time, you still not contented with what you have. It doesn’t matter how big or how small is your monthly salary; it’s how you manage it. You can start managing your money with the help of Money Jar. This concept is a very old-fashioned way of storing some extra cash or coins in our pocket which we usually ignore, but with the help of Money Jar; you will notice the importance of that coin in your pocket. Money Jar is popularized by T Harv Eker’s author of the book, “Secrets of the Millionaire Mind.” If you haven’t read it, you should grab one and understand it.
How to Make a Money Jar?
Having a Money Jar doesn’t require you to buy it, remember every penny count. All you have to do is to look around at your house and look for some empty cans, empty candy jars or Plastic container. I usually used a plastic container, in this way you can also help our environment to lessen those plastic materials that usually blocks the sewerage and flood ways that causes water pollution. We are hitting two birds at the same time; we help our environment and save money. Cut an entry point in any part of the container, but I usually cut at the bottom and make sure that the coin fits on it. For final touches, put a Money Jar label on it or design it as you like; as long that it motivates you to place something on it every day or every time you got home and you have some coins in your pocket. Why? When you place money in your Money Jar daily, you will keep your attention on growing your money. It also practices yourself to learn the new Habit of Managing your Money.
What is the Purpose of Money jar?
Now, ask yourself what is your purpose in having a Money Jar. Saving money is not enough if you don’t know where to use it. It is like having a bow and arrow without a target or goal. So, set some goals!
Here are the Basic Purposes of Money Jar:
1. Necessity Account This account is for managing your daily 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.
2. Financial Freedom Account This is for your investment. 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. 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 or else you’ll get bankrupt!
3. Education Account Money in this jar is intended to further your education and personal growth. An investment in yourself is a fantastic way to use your money. You are your most important asset. Never forget this. I have used education money to buy books, CD’s, attending courses or anything else that has educational value.
4. Long Term Saving for Spending Account The money in this jar is for the bigger nice to have purchases. This is for your long term spending like car maintenance, laptop, furniture and gadgets.
5. Play Account This is my most wanted account. Play money is spent every month on purchases you wouldn’t normally make. The purpose of this jar is to cherish you. You could buy a high-priced bottle of wine at dinner, get a massage in a health spa or go on a weekend getaway. Play can be anything your heart wishes.
6. Give Account The money in this account is for charity. You can use this account to help other people or to give to family and friends on birthdays, special occasions and holidays. Money is not everything you can also give away your time instead of giving money. Help your family, friends or neighbors in their household chores or volunteer in your community. I remember the movie “Pay it Forward” if you help other people don’t let them pay you back; teach them to pay it forward.