6 JARS MONEY ALLOCATION
The best way to predict the future is to create it. Being smart managing resources you earn can be beneficial more or less. We would like to start with the basic principles managing money. This principle is formed by T Harv Eker, the author of ‘Secrets of the Millionaire Mind.’ It is pretty easy. Following this principle makes every pocket left for everything you want to do in life. Everyone can do. Let’s start.
Let’s star with the first GOLD rule: separate your savings account away from your normal expenses bank account. Otherwise your expenses and savings will mixed up and you cannot control it.
Jar 1 Necessity
This portion of money is to be paid in everyday life e.g. food, rent, instalments, fuel, electricity bill and so on. 55% of income is to be allocated for everyday spending–normal expenditures.
Jar 2 Play
Make sure that you play happily after working. Allocate 10 % of your overall income to this account or jar or a purse to pay for whatever you want. This is a reward for you.