How To Self-Manage Your Own Money With A Six Accounts Strategy
Would you like to have better self-management of your money so that you have enough to save for retirement, invest, play & pamper, and at the same time doing your part to contribute to the charity on a regular basis?
If you do, you can actually make sure of this Six Account Strategy that I have learned from T. Harv Eker’s brilliant book called, The Secrets Of A Millionaire Mind.
Why Should You And I Make Use Of This Strategy?
My personal experience from what I learned from most people, who have just received their bring-home income and including my own, is that the money will be used to pay off most of outstanding bills and loans, settle and pay for any necessities and the rest is kept in the bank account (if any is left, of course).
All these are usually done on a irregular amount and inconsistent basis, do you agree as well?
– For Investment And Education Opportunities
For example, if there’s a good (as in really, really positive and good potential) investment or education opportunity that may just come up to you, you may keep asking yourself whether you should go for it and leave a slight cut on your bank account or use it for other personal uses… For most people after this much of pondering and thinking that using the money for other personal uses is better, this one chance may just slip away and never appear!
Such case did appear to me, in one particular case of stock investment where there’s a strong potential growth of at least 20 – 30% capital gain. I do have the money to invest but… I wanted to use that money to spend on some latest Tech Gadgets. So at the end of the day, I did not invest or spend on any Gadgets (because the better ones are coming up, again!). The stock grew and it was too late for me to go into it!
– For Retirement Planning And Charity Giving
Likewise for Retirement Planning, most people do not concentrate much on this particular section of planning and rather spend most of their money on other areas. They only plan and invest towards the last few years of their working life and hope that miracles will happen at the end of it! Usually, such things will never happen to the mass majority!
I am a believer of Charity Giving and I would try to donate to my charity choice once I have the spare cash. I would like to do it on a regular basis but I am, like any other normal person, that these donations should be spent on other uses. And to side-track, do you know that by giving away a bit of what you have to help others, you will get “rewarded” (not just in monetary sense) many times back? That’s why many millionaires are requesting people to step out and do their part in charity giving.
So if you did face such situations before (which I did) and you would like to have a way out, you should try on T. Harv Eker’s Six Jars System today!
How Does T. Harv Eker’s Six Jars System Work?
In general, you need to have so-called six accounts (i.e. actual bank savings accounts or some form of Excel Sheet tracking) to separate your bring-home income.
And under the Six Jars System, you should have these accounts and the percentage of your bring-home income in it:
1. Financial Freedom Account (10%) – This account is meant for your Investment Purposes. Making sure your money works hard for you! Please do not try to use this money to try on the lottery. The money in this account is meant to go into good investments like Stocks, Unit Trusts, Properties or any assets that will give you a significant rate of return as compared to the usual bank savings account rate. Any dividends can be re-invested or to go into your Long-Term Savings Account.
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