Managing your Money - Key to Financial Freedom

Jars, yes that’s all it could take you to become financially free. I attended a 3-day seminar recently by best selling author T.Harve Eker. Within the first few hours I discovered what I feel is a most effective method of managing my money.

Jars! Prepare 6 jars (the Chinese New Year cookie jars, with the red covers, will do nicely). Label them as follows:

1. LTSS – Long term Savings for Spending
2. FFA – Financial Freedom Account (whatever you do DO NOT touch this account; it’s key to your Financial Freedom)
3. Give – For Charity
4. Play – For money to party and have fun with
5. Nec – For spending on daily necessities
6. Edc – For money you use to attend seminars, buy books etc, for your personal education

Now, with a dose of self discipline (you must want financial freedom bad enough), on a daily basis, split your daily budget into these 6 jars as follows:

• LTSS – 10%


• FFA – 10%


• Give – 5%


• Play – 10%


• Nec – 55%


• Edc – 10%

The benefit of doing this is that once you’ve split up your dollars this way, you can spend all the money set aside for Necessities and Play, look forward to buying a big ticket item from money saved in the LTSS jar, do your part for charity, increase your knowledge and personal development, AND still have enough money to save and invest for your Financial Freedom.

Once every week or two take the money from the FFA jar and deposit it into an account set up specially for it. DO NOT attach any ATM card or checking account to this. Once the money is inside, keep it there. The only time you do anything with it is when you’ve decided how you’re going to grow it by investing.

I learnt over that weekend that, “The Habit is more important than the Amount.” Because once the habit is instilled, almost like magic, the amount will tend to increase too.

If you would like to receive a set of beautiful mind maps of the whole 3-day seminar, write to vasuisnow@gmail.com. It consist 6 mind maps, 2 for each day. You will have to send me a check for SGD25 first, to help me cover the cost of copying and courier costs (for Singapore).