The Money Jars – An Overview of T. Harv Eker’s Money Jar Strategy

Have you ever been broke? Have you ever wondered how to save money easily? Have you ever been afraid of what you’ll have saved when you retire? Money Jars to the rescue!

I first learned about the money jars at the Peak Potentials Millionaire Mind Intensive. The jars are a deceptively simple way to encourage pain-free savings without imposing rigid budget rules on your life. Pain free saving sounded great to me, but I like to save. What about the people who don’t like to save and instead like to spend? Good news, the jars still work!

Here’s how the jars break down into categories:
1. Long Term Savings
2. Financial Freedom Account
3. Necessities
4. Play
5. Giving
6. Education
**Independent contractors will want to have an extra jar set aside for taxes.

The beauty of the jars is that you are not restricted to making adjustments as necessary, but that it also forces you to be aware of your money on a daily basis. Plus, it allows the freedom of some guilt free PLAY which is highly recommended in The Now Habit for overcoming procrastination. The money jars focus you on creating good money management habits. Once you're in the habit of responsibly managing your money you'll find out how much easier it is to get ahead in your life.

As an initial recommendation each jar should be stocked as follows:
10% LTSS
10% FFA
50% NEC
10% PLAY
10% GIVE
10% EDUC

Imagine never having to worry about emergencies again. Imagine having money to enjoy guilt free fun. Imagine having enough for retirement. Even if you have to change the percentages in your jars, you could still accomplish all of the above. The only real rule is that you MUST keep track of your spending.

I started my money jars in January and after a couple of months dealing with the cash, have transferred everything into a series of fee-free bank accounts. I track my spending weekly in an excel spreadsheet and reconcile my bank accounts monthly. 30 minutes a week is all it takes. Happily, I’m seeing a real increase in the amount I’ve been able to save for my retirement. There’s lots of ways you can use the money jars effectively in your life. For a complete brief, check out The Millionaire Mind Intensive or Secrets of the Millionaire Mind by T. Harv Ecker.