Just recently, I stumbled by the most amazing financial tool ever.

I wished I had learned about it sooner.

It’s only been about four and a half months, but I’ve never felt so in control yet so free at the same time, when it came to how much money I had and how much I could spend on anything I needed or wanted.

Now I don’t mean that this money tool made me realise I was rich.

It just released me from so much.

For starters, while I was good at saving, I still did not have a clear idea of whether I was saving smart, how much I really had, and how I could manage what I had to grow it and secure it for my future.

What I want is to retire as soon as I can, knowing that I had passive income that was coming in and enough to pay the bills, so that I could play with my days doing what I love. If what I loved made more money, then great. If it didn’t, then so be it.

I wanted to be as abundant as I needed so I could travel, see the world, spend as much time with my family, indulge my loved ones in wonderful experiences and help anyone at any time if needed.

But I didn’t know exactly how to do this or how much was needed to achieve it.

Until I actually took a real look at everything that I had, and applied the methods of T. Harv Eker.

If you haven’t heard of Harv, I suggest you start now. Especially if you want to learn how to manage your money better.

And I think everyone should. Money can, in so many ways, be the root of all our stress, that when suppressed to the point that it’s subconsciously boiling over, leads to a lot of actions that do not make us any happier with our lives.

Managing our money better can alleviate that stress, and allow us to use our new mental space to then begin the next phase in our quest for happiness, a journey into discovering who we really are.

So let’s do just that — sort our money issues out.

At first, it will be difficult. It could even be painful. I remember a time when I was barely making enough to make ends meat and was also sinking into some credit card debt. The last thing I wanted to do what look at my bank statement.

Even when I began to make enough that I didn’t think twice about my bank balance, I still somehow avoided looking through the numbers thoroughly and accurately knowing what was going in and out.

It was all a muddled mess.

Until I learned about Harv’s Money Management System.

It’s so simple yet so brilliant. And here we go. Let me share it with you!

Harv basically says that everyone should have six different bank accounts, or “six jars” as he calls them.

Yes, six.

Anyone who is wise with their money would not put all their eggs in one basket.

By having six accounts (or literally jars, if you want), you can clearly identify what money you can’t touch and what you can invest, spend and give away. You can have all these accounts with the same bank, or you can open them in different banks.

And if you want to get rich, with this system in place, you then have to stick to three simple things when it comes to money:

You gotta earn it, save it, grow it.

Once you can see where your money is and know clearly what you can and can’t afford, you feel so free because you know your decision is based on real numbers.

So let’s say you’ve found a way to earn money, however much that is (it could be $100, it could be $100,000. It’s not about how much you earn, it’s how you manage your money.). After all the deductions like tax etc., you will be left with your nett amount. This is basically your “take home salary”.

It is this amount that is divided into the six different jars.

The six jars/accounts are:

1. Financial Freedom Account or FFA (10% of nett salary)

The money in this jar can NEVER be touched. Not ever. The only time you’re allowed to take money out of this jar is once you’ve retired. There are NO exceptions to this rule. Remember that when you’re younger you have more years to save, but the older you get, the less time you also have. So be strict about this. Your older self will love you for it.

Okay I lied. There is one exception to this rule. And that is the only time you’re allowed to do something with the money in this jar, is if you’re going to invest it in something that has guaranteed fixed returns, like fixed deposits or bonds.

Since the money will be sitting there anyway, it might as well grow faster in something that has a maturity plan.

2. Long Term Savings For Spending or LTSFS (10% of nett salary)

This is the jar you dip into when you have to buy a home, a car, a fridge, or anything that you need that is quite expensive. You can also use some of this money for investments, and for these investments, you can dabble outside the guaranteed returns zones. Meaning, something that comes with some risk.

To some extent, the LTSFS is money you can “afford” to lose. Unlike your FFA.

But of course, be smart with your LTSFS still, and if you want to invest in something that requires a leap of faith, don’t forget to also be practical and fact driven, coupled with a good dose of intuition.

In the instance that you have to spend big from your LTSFS and it depletes significantly, start from scratch and again, NEVER take any money out of our FFA.


3. Necessities (55% of nett salary)

This is the account that hosts all your necessary spending on a monthly basis. Your rent, mortgage, bills, credit cards and loans, groceries, daily expenses… That’s it. Super simple.

If you have additional left over, meaning you spend less than that 55%, then feel free to reallocate that into any of the other five existing accounts as you please. Personally, whatever balance I have I like to split into my FFA and LTSFS.

I’ve been enjoying watching those grow.

4. Education (10% of nett salary)

Never underestimate the power of education.

About eight years ago someone told me that people who read non-fiction books were seven times more successful than those who only read fictional literature.

Now I’m not sure if “seven times more” is accurate here, but I’m sure that statement has some truth to it.

After all, if you were reading a non-fictional book, that means it was based on facts, and that means, there’s something to learn and apply.

And when you apply, you see results. Sometimes you fail, but then you learn and apply again, and if you don’t give up, you will see results.

At the time that I learned this non-fictional vs. fictional theory, I realised, I was only reading fictional books. I didn’t read non-fiction. Those were boring.

But I was itching for success, so I tried it.

And I haven’t read a non-fictional book since. Growing up I always had my nose in a book, and so it was time to change the story.

True enough, my life took a turn. I felt smarter, more confident, I was learning and applying, and it was paying off. While I was at it, I also read about personal development, in order to develop the best coping skills I need to live a happy and stress-free life.

So yes, the point I’m getting to, is education is important. If you want to grow and be successful, then start educating yourself.

Buy books, home study courses, attend seminars, whatever you feel is offering what you want to learn and how you want to learn it.

If you don’t spend all of your Education Fund it in a given month, that’s okay. That means it will add up, and you can then spend on higher ticket items that involve learning, like an elite mastermind group which has a high annual membership.

If you feel you can learn everything you need for free on the Internet, then take this 10% and put it in another account you deem fit.

5. Play (10% of nett salary)

Yay! Best fund ever. This is for pampering and spoiling yourself.

Want to have a bottle of champagne at dinner? Want that spa treatment? Oh that handbag and/or shoes… I love play.

No guilt. You know what you can afford from the get go and you spend it accordingly. And yes, it adds up if you didn’t spend it, so you can really indulge when that goes up.

Five-star hotel on your next holiday? No problem.

6. Give (5% of nett salary)

Last but not least, everything is energy. So, if you want to make some, you gotta lose or give away some. And you can lose some the hard way, or you can give it away freely and from your heart.

This account you empty every month. There is nothing to save here. This is energy that has to flow out so make sure it flows.

If you’re in a situation where you have to help a family member or someone close, always look to this account. That way you will also avoid resentment if you have to give them money you “can’t afford”.

Anything here has to be given away, so offer that and practically say, “This is all I have to give”.

And that’s it! The six accounts. I hope these can help you as much as it’s helped me. Now go earn, save and grow!

Like this article? Then check out Harv’s free training for Passion, Purpose, And Profits.

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