Be A Seven-Jar Person: The Budget Jar Method

4/15/2018

Saving money is the best gift you can give to your future self.

Saving is not an option, but a priority. You must start today rather than tomorrow. Remember that time is precious as money. If you waste time, you waste money.

A lot of people who are a One-Jar Person. Are you one of them? And a lot of people use only one-jar for their finances, and that is The Spending Jar.

If you want to achieve financial abundance and bless more people. You need to be a Seven-Jar Person. What is a Seven-Jar Person?

Let's go through the Seven Jars!

Jar 7: Everyday Fund (50%)

This is your regular monthly expense (Food, Water, Electricity, etc.). Live simply so that you can live within this range. Stick to your standard of living.

Jar 6: Emancipation Fund (20%)

Your Emancipation Fund is for your retirement. Others call this the Freedom fund, because if you're faithful in building this fund, you'll become financially free.

When do you know that you're financially free?

Simple: Can you stop working today and live the same lifestyle? If you can, you're financially free.

You can invest your 20% in paper assets like stocks, bonds, etc. Invest consistently!

The Bible says, "Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it" (Proverbs 21:20).

Jar 5: Emergency Fund (5%)

Emergencies will happen, so be prepared so they don't derail your financial plan.The main purpose of emergency fund is not an investment, it's a protection with one purpose - to protect you and your family just in case there's an emergency situation. You should set aside 3-6 months income to help cope with emergencies and unexpected changes.

Jar 4: Empower Fund (5%)

This is for short-term savings for specific dreams. You can use this fund for down payment for a new house or a new car.

Jar 3: Enjoyment Fund (5%)

God wants you to enjoy life. The Bible says, God "richly provides us with everything for our enjoyment" (1 Timothy 6:17). This fund is for your wants. It could be eating in a favorite restaurant or going on a vacation.

Rewarding yourself regularly is fantastic motivation to earn more.

Jar 2: Education Fund (5%)

Grow your wealth by growing yourself. Invest in yourself! Attend seminars, read books and watch webinars.

Jar 1: Eternity Fund (10%)

The one who blesses others is abundantly blessed; those who help others are helped.

Give Generously