The "6 Jars" Secret to Effective Financial Management

The Jars money management method, using only six jars, is a world-renowned formula that has been applied by successful people for centuries. They have even passed on this special method to educate future generations on millionaire mindset. If you follow this formula, your financial future will undoubtedly improve.

It's very simple, just prepare six jars (they could be safes or bank accounts) - let's call them 6 financial funds. 

Each jar has a specific name and function.

Whenever you receive money (salary, bonus, sales profit, or any other source of income), immediately divide that amount into 6 jars.

This needs to be done immediately, to make it a habit.

The NEC fund helps you ensure your daily essential needs are met. You can use the NEC fund for food, living expenses, entertainment, shopping, and other costs.

Please note: If your current NEC fund balance is above 80% of your income, you need to increase your income streams or cut expenses to achieve financial freedom.

You need an LTS fund because it's not about how much you earn, but how much you keep. You use the fund for long-term goals, to fulfill your dreams.

Please note: This fund is not meant to be a savings account for times of hardship.

You need the EDUC fund to develop yourself every day. The best investment is in learning; the greater your "stature," the more you attract great things, whether it's wealth, fame, or happiness. Use the EDUC fund to buy books, read self-development books every day; participate in courses, training, and lectures; or meet and network to learn from successful people.

The PLAY fund is for you to nurture your self-indulgent ego. This fund helps you express self-love; enjoy the feeling of success; do things like the rich; and enhance your capacity for acceptance. You use the PLAY fund to do things that make you feel rich: go to places you've never been, eat foods you've never eaten. Each month, on the last day of the month, you must spend all the money in this fund.

The GIVE fund helps you express gratitude for life. Life is also about sharing; you give to receive more in return. You can use the GIVE fund for charity; to help relatives, family, and friends.

Financial freedom is living the life you want without necessarily working or being financially dependent on others. You need to set up a Financial Freedom Fund (FFA) to have money working for you. This way, you create a "golden goose" that lays golden eggs for you to use when you are no longer working. You can only use this fund to invest and generate passive income. The more money works for you, the less you will have to work.

– Take some time to sit down and reassess your personal finances.

– First, write down how much money you will have each month, then divide it equally among the accounts according to the ratio mentioned above.

-It doesn't matter how much money you transfer, what matters is the daily habit. Habits are more important than money. Even 1000 VND a day is fine. If you don't have any money at all, you must still follow this principle. When you have no money to share, you will feel the suffering and you will be more motivated to earn money.

The issue of putting money into these jars needs to be addressed. DAILY.

If you work every day but your salary only increases at the end of each month, then you are essentially just an employee, receiving a salary.

Look for additional sources of passive income to supplement your daily earnings.

The PLAY Enjoyment Fund needs to be spent continuously; it must be depleted by the end of each month.

If you have extra money, you need to balance your life by thinking about taking care of yourself; if you don't have enough, you need to focus on earning money.

Remember that enjoyment should be of high quality and make you feel happy.,

For example: If you have 2,000,000 VND in your PLAY fund, instead of buying 10 items of clothing each costing only 200,000 VND, you should buy one designer outfit worth around 2 million VND. This way, you'll feel truly happy, unlike when you buy those cheap clothes.

With the Financial Freedom Fund (FFA), you should never spend the money in this fund; only use it for investing to generate passive income.

According to asoft.com.vn