Money Jar Financial Services Dublin 2, County Dublin 271 followers Money Jar is your digital current account which allows you to take control of your finances.

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Is Money Jar Evaluation Service For Real

Jars Money Management System is introduced by T. Harv Eker. He suggested to separate your income into different accounts for specific purposes. The most important part of managing money is to develop a HABIT of managing your money. It doesn`t matter how much you could put in the jars. You must learn how to manage your money before you get rich.
Kai Hock has great explanations on his site. Let’s go through each jar in detail.

FFA (FINANCIAL FREEDOM ACCOUNT) JAR

“Have fun, make money and help us improve customer service on a Global level,” the letter says. This is, of course, a scam currently making the rounds of households nationwide.
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When income comes in, Poor people settle the mortgage loan, pay the credit card bills, utility bills, insurance, etc first. Then whatever that is left behind is known as savings. And usually, there is nothing or not much left. Rich people follow the “pay yourself first” financial principle before spending the rest of the money. So, the Financial Freedom Account (FFA) jar is 10% of your total income. The idea is to grow this money so that it becomes a golden goose that lays golden eggs called Passive Income. This is done by investing this money into

Real estate
Business acquisition
Stock investing (not trading)

The FFA jar is your ticket to Financial Freedom. So, if you find that you do not have the discipline to save, open up a saving account in a different bank and make it really inconvenient to withdraw money. So, refuse to accept a ATM card or link it to any other bank accounts that you have. The only way you can withdraw from this account is to walk into a bank and queue up at the counter. And on top of the FFA bank account, create a FFA physical jar at home too. Each day when you come home, deposit some money into it. It could be $10, $1 or any loose change. Then at the end of each month, deposit this money into the FFA bank account. The amount does not matter, the habit does.

The purpose of the FFA physical jar is to place daily attention on your goal of becoming financially free. And when you do so, you attract opportunities and events to help you towards that. Basically, this simple jar becomes your “money magnet.” Don’t believe it? Do it and see it for yourself! Also, have you heard that we should have a “Security Net” amount that is equivalent to 6 months’ worth of expenses? This is important in case of unforeseen events that do not allow us to have working income coming into our life. These include

Retrenchment
Being fired
Personal medical conditions
Family incidents that require our full attention.

So, I would use the FFA jar to hold this Security Net amount too. For me, I split up every $1 into $0.50 for Security Net and $0.50 for future investments vehicle until I build up this Security Net amount. Then, I put this money into a fixed deposit or low-risk investment vehicle which gives you immediate access to the money whenever you need it.

FFA JAR RULES

You never spend this money. You can only invest this money in investment vehicles that have potential capital gains OR passive income streams. For any returns of your investment, re-invest everything back into FFA. Continue to do so until you are financially free. Then, you can spend the returns on your investment but NEVER spend the principal, which has a potential of more income returns.

PLAY JAR

If you are a SAVER, chances are you would be satisfied seeing the money accumulating in your life. However, you would also feel that there is not much fun out there. So, while the logical and responsible self is fulfilled, the inner self is not. And what’s worse, whenever you spend, you feel guilty that you should be saving it instead. Sound familiar? As a result, many SAVERS end up saying, “Enough is enough,” and they take out all the money and spend it, thus completely sabotaging their results.

What about SPENDERS? When you keep spending, not only will you never become rich but you will eventually feel guilty spending too.

So, that is where the PLAY jar comes in handy for both SAVERS and SPENDERS. It’s another 10% of your income for you to enjoy your life and to indulge yourself. Many financial gurus talk about saving 10% of your income to invest. However, it was through Harv that I realised I must have an equal and opposite account specifically designed for me to spend my money and have fun with it! So, that’s the role of the PLAY jar.

So, for SAVERS (and I am one), the PLAY jar motivates you to continue to follow the plan and makes managing money a heck of a lot more fun! And for SPENDERS, the PLAY jar ensures that you have lots of fun but within your means! In fact, when you stick to the plan, you will never have the guilty feeling of overspending any more! Your PLAY jar is primarily used to nurture yourself. So, use it to do things that you would not normally do. Examples include

Order a bottle of the restaurant’s finest champagne
Rent a luxurious yacht for 3 hours
Drive a Ferrari or Lamborghini for 1 hour
Stay in a high-class hotel for an extravagant night of fun
Take a ride in a limo
Sit in the front row for a concert of your idol singer
Have a luxury spa pamper you from top to toe
Buy the top-of-the-range golf set you have been eyeing
Go on a VIP Tour of Universal Studios or Disney

Or just enjoy the form of luxury that nurtures your soul the most!

PLAY JAR RULES

You MUST blow all the money in this jar every month in a way that makes you feel rich. If there is a particular spending whereby one month of PLAY money is not enough, you can accumulate up to 3 months to blow jar. If it is a big item requires more than 3 months of PLAY money, use LTSS jar (discussed next) instead.

LTSS (LONG-TERM SAVINGS FOR SPENDING) JAR

Poor people go for instant pleasures. So, the moment they see the new Mac computer or Louis Vuitton bag, they simply swipe their credit cards and worry about the bills later. On the other hand, Rich people learn how to delay gratification. They save up before they spend. Even when they go for installment payments, they already know that the money will be allocated each month to pay the credit card bills. So, the third jar is called Long-Term Savings for Spending Account (LTSS). This is another 10% of your income.

As the name implies, it is a jar for you to spend. However, unlike the PLAY jar, it is not meant to be spent every month. It is meant to be accumulated so that you can spend it later on big items such as the new car, the latest LED TV, the dream holiday trip. As the saying goes, “A small monthly contribution can go a long way.” Here are a few more ways you can use LTSS jar

Christmas gifts fund – I have a private coaching client who would spend close to $2000 each Christmas to buy gifts for family members and friends. So, December became a really tight budget month for him. When he implemented the Money Jar System and saved $200 each month into the LTSS jar as a Christmas gift fund, he had the best Christmas the following year.
Childrens’ university fund – Save a fixed amount each month into the LTSS jar as their university fund. For every $10,000 saved, we put it into some fixed deposit or very low-risk investment vehicles to have a slightly better returns compared to bank deposits.
Payable tax – In some countries, taxes are immediately deducted on payday. However, in some countries, taxes are only deducted after one year of income. While it means more disposable income every month, it creates a lot of stress during income tax filing period! To ease that, you can estimate the amount of tax payable and start saving it up in the LTSS jar (similar to the Christmas gift fund)
Emergency fund – This is a fund that you tap only in case of dire, unplanned events such as replacing your washing machine, water heater, air conditioner, dishwasher, and the leaking roof on your house. With this fund, you would not have to resort to credit-card debts. Note that this is different from the Security Fund under FFA jar.
Paying off your debt – If you currently have debts, use at most 50% of the

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