7 Jars of MoneyThe Secret of Success in Managing Finances

This is the 7 Jars of Money

according to T. Harv Eker's Secrets of the Millionaire's Mind

1. Freedom Fund (approx 10-20% of your income)

• This is the money you invest today so you can have financial freedom in the future.

• You may use this fund in business, stocks, bonds or mutual funds

• Never spend this fund or you'll get broke when you get older and just rely on other people for your expenses. You don't want to be like that.

2. Emergency Fund (5-10% of your income)

• This is the money you keep to be used in case of an emergency -you need to suddenly repair your roof, a house member gets sick, or an unexpected expense comes in.

• The amount should be 3-6 months of your monthly income

3. Everyday Fund (50-70% of your income)

• This is where your bulk of money goes - in your everyday expenses

• This might include your food, clothing, travel, utilities expense,

• This is the fund you need to live and survive

Dream Fund (approx 1-5% of your income)

• This is the amount of money you keep for a specific dream - you want to take a family vacation, buy a new TV, or a new car

• Be specific with your dreams so you know what is your target amount for that dream

Fun Fund (approx 1-5% of your income)

• This is your reward to yourself for managing your finances well.

• Spend it every month to relax and restore your energy - go to Salon, have a date with your kids, spouse or parents

• You deserve it so treat yourself in something special - anything that can make you happy and relaxed.

Education Fund (approx 3-5% of your income)

• Don't be complacent with what you know already, keep growing by investing in books, seminars or mentoring programs

• This would give you wisdom that you need to reach success

• Grow yourself, grow your wealth

• Be an eternal student

Give Fund (approx 5 - 10% of your income)

• This is the money you give away to charities, unprivileged families, or tithes to church

• You can tithe or donate every month, or accumulate the funds throughout the year so you can throw parties to your favorite institutions or give them food and toys on Christmas season.

Please take note that:

• Percentages are not important, you decide on your percentages for each fund depends in your current state of income

• What's most important is you develop a habit of planning where to put your hard earned money

If you don't plan for your finances, others will do that for you

and you might not like the result.

So may I ask you...

Who took your hard earned money?

Where did your hard earned money go?

Start Managing Your Finances Today

Maya Reyes Your Online Life Coach

www.pinaylifelessons.blogspot.com