Money Jar Management System

A lot of us wants to save but only a few can really do it, though some tried to start saving but end up with spending everything. I have a question, if you are going to SPEND your P100.00 pesos today, is it a big amount or small amount? Let's say you want to buy Starbucks to treat yourself, is it enough? But what if you are going to SAVE your P100.00 pesos just for today, is it a big amount or small amount?

I bet most of you answered that P100.00 is a small amount to spend today, you can hardly buy a Starbucks or it wouldn't be enough to treat yourself for the day. But P100.00 to save for 1 day is quite a big amount, isn't it? Why is that so? It's because our formula of savings is 

INCOME - EXPENSES = SAVINGS

That is why your P100.00 is a big amount to save because you still have a lot of expenses in mind. The correct formula is

INCOME - SAVINGS = EXPENSES

Remember to always pay yourself first. Not by spending your money paying Jollibee, SM Department Store, Samsung, and Krispy Kreme, but you need to invest in yourself for your future. Learn to apply the saying "Sacrifice now, enjoy later". I know it's easier said than done especially to those who are not used to setting aside money, but I tell you it's better to start now or regret later. 

Here is a simple way to start saving by applying the Money Jar Management System, it's really simple and doable but the hard part is you have to discipline yourself. It's not the amount of money you save that matters, it's how you consistently save money because saving is a habit.

For starters, you can use empty jars or bottles at home and label them accordingly. Once you are able to build the habit of saving then you can open a bank account for each of the following:

*Note: Percentage inputted is applicable for starters, you can change the percentage according to your preference. You can choose which account you want to prioritize first, it doesn't have to be all of them you can start with 3-5 jars.

1. I Always Have Money Account - Set aside 1% of your income and you will not withdraw the money you put here for the rest of your life. When you feel broke or when you are broke, you cannot say "I don't have any money!" so you won't attract the negatives because you have this account. Simply applying the Law of Attraction. 

2. Financial Liberation Account - Set aside 5% of your income and invest it in an instrument that will give you passive income. (i.e. Mutual Funds, Stocks, Business Passive Income such as Royalty Income) This implies that you start investing your income where it can grow without you doing anything.

3. Abundant Spending Account - Set aside 3% of your income. Decide on the level or amount of money that when reached, you will spend all the money in this account for only ONE day. I call this my 'Reward Jar' and this is my favorite jar too, you won't feel guilty spending this because that's the purpose of it. 

4. Yearly Income Account -  Compute what amount of money you need to last yourself for a year. Put 3% of your income in this amount with the intention of reaching that total yearly income you targeted. This is also called "Emergency Fund Jar" if you have not started with your emergency fund then you can apply this.

5. Tithing Account - Always set aside 10% (fixed) of your income and donate it to the organization or person from where you derive spiritual guidance from. Thank God for everything that He has given us and return to Him a portion of what we received. 

6. Giving Account - Set Aside 3% of your income for giving to others. I always believe that whatever you give will come back to you a thousand folds. 

OTHER ACCOUNTS

7. Dream Car/House/Business - Set aside a portion of your income for your dream car, house or future business.

8. Wisdom Account - Set aside a portion of your income that you will use for improving yourself. If you want to learn or buy a book to increase your knowledge (i.e Education).

9. Peace of Mind Account - Set aside a portion of your income to wipe out your debts. If you have overdue balance in your credit card account and can't seem to pay it all at once then you can use this account.

10. I'm Always in Love Account - Set aside a portion of your income for love pursuits. If you are in a relationship you can use this for your dates, gifts, anniversaries and whatever you two are planning for your future to grow your relationship. For single, you can use this to love yourself more - go out and explore, who says being single is boring?