Sunday, March 28, 2010

Money JARS that I'm practicing

I been attending CA2020 its not the usual IT community I been attending like plug,ubuntu-ph,etc its a community of business minded people and they share how to become financially free I learn one cool stuff from them the money jar which I'm practicing. Below how it works

Short description of each one.

> Necessity Account (NEC - 55%): This account is for managing your everyday expenses and bills. This would include things like your rent, mortgage, utilities, bills, taxes, food, clothes, etc. Basically it includes anything that you need to live, the necessities.

> Financial Freedom Account (FFA - 10%):The money that you put into this jar is used for investments and building your passive income streams. You never spend this money. The only time you would spend this money is once you become financially free. Even then you would only spend the returns on your investment. Never spend the principal or else you’ll go broke!

> Education Account (EDU - 10%): Money in this jar is meant to further your education and personal growth. An investment in yourself is a great way to use your money.

>Long Term Saving for Spending Account (LTSS - 10%): The money in this jar is for the bigger nice to have purchases.

> Play Account (PLAY - 10%):PLAY money is spent every month on purchases you wouldn’t normally make. The purpose of this jar is to nurture yourself. You could purchase an expensive bottle of wine at dinner, get a massage or go on a weekend getaway. Play can be anything your heart desires.

> Give Account (GIVE - 5%): The money in this account is for giving away.When you give your money or time you’re sending a sign of abundance to the Universe. You’re telling the Universe that you have plenty of everything, you’re abundant. Giving signals abundance. This will magnetically attract more abundance to you.

How the JARS Work