Tuesday, 26 June 2012

I was at a seminar couple of months back and I was listening to a speaker presenting on T. Harv Eker's jar system for financial planning. A very interesting concept therefore I'm going to try and apply this and see if it works. Feel free to join me =)

The mentioned jars are as follows:

FFA - Financial Freedom Account  10% of your after tax income goes in here and is not taken out for anything other than investments to build your PASSIVE income. Put something in this account everyday...even if it's your pocket change.

NEC - Necessities - 50% of your after tax income goes in here and is used for uh...necessities...food, shelter, clothing, car etc.

EDU - Education - 10% of your after tax income goes in here to be used to improve yourself. Do you spend more at the coffee shop than you do on your education...books, tapes, seminars etc?

LTSS - Long Term Saving for Spending - 10% of your after tax income goes in here to be used for downpayments on houses or cars...big ticket purchases like furniture etc. You could have 2 of these
jars and put 5% in each.

GIVE - Giving - 10% of your after tax income goes in here to be used for charitable contributions.

PLAY  - 10% of your after tax income goes in here for fun! You spend this money every month or at the most every two months. He suggests using this money to do or buy something a wealthy person
would. A limo ride?...a massage?...fancy shoes?...a Rolex?...it's up to you but make sure it's something that really makes you happy and/or is fun!

Have fun applying it!!! =)

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