Saving the right way: 6 Jars Method

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The method of Jars is one of the most efficient means of running personal or family budget. All you need to do is to distribute the money you are planning to spend among the 6 jars. Each jar corresponds to one of the spheres of life. This way you will avoid spending more than you have planned.


jars_numder(1) Jar №1: the essentials (55% of your budget) Money that is placed in his jar is meant to be spent for daily expenses and paying the bills. They will also cover your rent and transportation fees, as well as taxes and food.
jars_numder(2) Jar №2: entertainment (10% of your budget) You may spend this part of your budget on the purchases you do not regularly have. An example of this is purchasing a bottle of expensive wine or making a weekend trip. Feel free to spend this money anyway you wish.
jars_numder(2) Jar №3: savings (10% of your budget) This is a guarantee of your financial independence. Money placed in this jar will be used for investing and creating of the passive sources of income. You should not spend these savings unless you gain full financial freedom. Even in such case, you should only spend the money you gained from the savings, but not the actual savings.
jars_numder(2) Jar №4: education (10% of your budget) Money that is placed in this jar is meant for the future education and personal development. Investments are a great way of depositing money while you are the most precious assets. Never forget about this. Spend these resources on purchasing books, CDs or paying for courses. You will eventually receive benefits from it.
jars_numder(2) Jar №5: individual funds (10% of your budget) You may use these savings for making big purchases. Use them for purchasing a plasma TV, subscriptions, or a vehicle. This is a so-called reserve fund that needs to be constantly replenished.
jars_numder(3) Jar №6: charity and gifts (5% of your budget) You may use this money for purchasing gifts for birthday, wedding, and other holidays. You may also donate it to the cancer patients, animal care centers, or simply give away to the poor.
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