Last Updated on 2021-10-19
Hard to Spend Money with Actual 6 Jars?
Before I took the Millionaire Mind Intensive online course, I already read about the 6 Jars system in the book 《Secrets of the Millionaire Mind》. It is a brilliant system that allows you to always pay yourself first. But there is a catch. In modern society, we don’t always pay by cash. Sometimes we use credit cards, Apple pay, Paypal… etc. that aren’t in physical form. After a couple of months of experiments, I’ve found the easiest way to execute the 6 Jars system.
4 Steps to Execute 6 Jars System Easily
Plan your monthly income with previous post – MMI Online Course Review – 6 Jars System. There’s no specific % for each account. You can always adjust the real number/percentage based on your needs. Here’s the example :
Then use different bank accounts to control and separate FFA, LTSS, and NEC accounts. This also means that I didn’t separate GIVE, EDU, and FUN account from the NEC account.
A account : Financial Freedom Account
B account : Long Term Saving for Spending
C account : Necessity Account
Of course, you could open exactly 6 bank accounts for precise purposes. The thing is that you find your own way of managing your money and be aware of what you spent on.
Every month, when I received my monthly salary in the C(Necessity) account, 2 transactions will happen automatically.
1. The FFA number 15,000 goes to A account. ( Remember to invest with the strategy of Asset Allocation )
2. The LTSS number 5,000 goes to B account.
The spirit here is to pay yourself first.
Let’s put it in formula ▶ Monthly wage – Saving(FFA) – LTSS(if any) = What’s left is your Disposable Income
Only use the money in your C account and RECORD every single expense on the google sheet 6 Jar Budget Template I prepared for you guys. You will find out that you can always pay yourself first and still know where did all your spending go.
It is very crucial that you find a bank account that can set up a recurring routine to make those 2 transactions (step 3) happen automatically every month. The concept was also mentioned in the book 《The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich》. If we didn’t even notice the transactions is happening, then it’s way easier for us to keep this effort-free habit. After all, it’s human nature.
6 Jars in Google Sheet Template
Google sheet (Excel file) is down below. Remember you have to make a copy in your own google drive so that you can edit.
Enjoy and leave a comment to let me know you like it or ask a question. = )