T. Harv Eker’s JARS Money Management System

昨天了解了jar system后，花了1小时把自己的金额整理了。

多的夜孩子的告知，让我了解自己不足的地方和需要进步。

从这个月的余额开始吧。

明年3月汽车就付完了NEC方面就可以降低了，加油吧。

During the 1st Millionaire Mind Intensive seminar in Singapore, Harv Eker introduced to people from all over Asia about the world’s simplest, easiest and most effective money management system.

Harv suggested that everyone can use the JARS system to better manage one’s money. The key between rich and poor or middle class people is their ability to manage their money. Rich people are excellent money managers and poor or middle class people are less-savvy when it comes to managing their money. And of course, there are many other distinctions that set the rich, poor and middle class people apart. I will go into that on my later blog post as I intend to discuss more about the JARS money management system in this post.

The most important part of money managing is separating your income into different accounts for specific purposes. I will outline the various accounts for the JARS system as well as their % breakdown of how one should divide their money to manage below:

Financial Freedom Account (FFA) = 10%

Long Term Savings For Spending (LTSS) = 10%

Education (EDUC) = 10%

Necessities (NEC) =55%

Play = 10%

Give = 5%



Anyone can start using this JARS method of managing their money even though if you think you do not have a lot of money to manage. The key is to develop a habit of managing your money, but not how much money you have available for you to manage. One must get into the habit of managing their own money, and you can start with as low as $1 to begin using this system.

Here are how the JARS system works:

Financial Freedom Account (10%) - Put 10% into your FFA whenever you receive money, such as your salary. You must NEVER, NEVER spend the money that you put inside your FFA account. Any money inside the FFA account can only be used to purchase or acquire passive income streams to grow your money. You may spend the interest acquired from the FFA if you choose to, although it is recommended that you do not. Keep the interest inside the FFA to grow your capital and interest faster. Think of your FFA as the golden mother goose that lays you golden eggs, if you spend the money inside the FFA, it is akin to killing your mother goose that will bring you golden eggs (your riches). Instead, keep the baby geese (FFA’s interest) that the mother goose is giving you, and you can grow more baby geese (your wealth) even faster. As you may already get it, the idea is to create a golden goose! You may prefer to think of the FFA as a legacy that you can leave behind for your future generations. If you are one who believes in the law of attraction, this FFA is actually your money magnet. Keep putting more money into your FFA and attract more $$$ into your life! Put $$$ into your FFA account everyday if you can, even if it is just a penny.

In summary, the time to spend your FFA capital is NEVER! When you stop working, you get to spend the eggs but never the goose!

Long Term Savings For Spending (10%) - Put 10% into your LTSS whenever you receive money, such as your salary. The money inside LTSS can be used for major expenditure such as savings for your children’s education, buying a house for yourself, keeping aside contingency funds.

Education (10%) - Put 10% into your EDUC whenever you receive money, such as your salary. You can use the EDUC funds for your self-education, for examples, books, seminars and events etc. Everyone needs to learn, especially in this changing world. Grow your comfort zone through learning and doing. If you are not growing, you are dying!

Take this quote from Ben Franklin:

“If you think education is expensive, try ignorance!”

Necessities (55%) - Put 55% into your NEC whenever you receive money, such as your salary. You should use the funds inside your Necessities account to settle all your essential bills such as phone bills, electricity, clothings, eating, driving, travelling, hair etc. If you cannot survive on 55%, simplify your lifestyle. Instead of driving a car, perhaps you can take public transport, or drive a Honda instead of a BMW. Buy Converse jeans instead of Armani. There are people who cannot live on 55% NEC when they started the JARS system but over time, these same group of people are able to simplify their lives and live on 50% or lesser!

When your usual needs for instant gratification kicks in, think this:

“Wealthy people think Long term. Poor people think Short term.”

Play (10%) - Put 10% into your Play account whenever you receive money, such as your salary. You are supposed to spend this money every month to pamper yourself. The key is to BLOW this Play money away every month so that you will feel good about having money and spending it! You should feel guilt-free when you spend this money every single month. Maybe you go for massages once every month, now you can use this money to really pamper yourself by going twice, thrice or as much as you want. Or you can try ordering champagne during dinner at a restaurant if you do not usually do. Or buy yourself a new gadget. Anything outrageous that you can do to pamper yourself and makes you feel really good. You are recommended to BLOW this money every month. However, if you need to save up for things such as short trips getaways that require a little more money, you can accumulate them up to a few months, say a quarter, before you use them.

Give (5%) - Put 5% into your Give account whenever you receive money, such as your salary. You can use the money for donations to charities, use it to help someone in need. Giving is important. If you choose to give 10%, take the extra 5% from your NEC and change the % allocated for NEC from 55% to 50%.

In my opinion, this is really a great Money Management System as it covers most aspects, if not all, on how one usually spend their money. It is so amazing simple, yet profound, method of better managing your money, regardless of how much money you already have! It can work for people who never save their $, or for people who needs to give to feel a sense of contribution to others/society, for those that need to learn and grow through learning, for anyone who just needs a little more help in managing their money.

-END-


有做过的人。。。自然会明白到背后的用意和魔术。

能让人成功改变的，不是因为这些数字和比率有些什么魔术，
单靠维持着现有的低收入状况（假设我们目前是穷人），跟着这些比率去储蓄和理财，
就期待能在5年10年时间里达到目标的话。。。那就真的是在做梦了。

主要重点。。。不是在这些数字的 %，而是背后的涵义。
～夜孩子


不过，初期的时候，其实最重要的还是开始行动。

不行动的话，再怎么思考，怎么计算，都是多余的。

～夜孩子

不少人开始都会很正常地出现一种普遍的问题。。。
他们都会尝试问。。。
“儿女的大学/学校开支可以算进 EDUC 吗？”
“出席朋友的婚礼/庆祝会可以算 PLAY 吗？”
“每月供保险和自住的房子可以当 FFA 吗？”
“每月供车可以当 LTSS 吗？”

其实。。。这是因为出现了根源的问题，
既是他们无法办到 NEC 55%。
因为算来算去，一般新鲜受薪族的那每月 RM2k-3k+ 的薪金，
在市区生活几乎都不大可能做到 55%，
还要包括给家用，供车，供屋子，保险等。

所以潜意识的间接反应，会把部分 NEC 的开支，
分配到别的 Jars 来用，然后骗自己当作自己也有在投资，
自己也有 PLAY，自己也有花钱 EDUC，等等，
过着一种 ignorance 的生活。

相信有 80-90% 的人，
每月的收入，NEC 是占了 80-90% 以上的。
如果以受薪族为例的话，多数甚至还是 90-100% 的。
糟糕点的话，还会 NEC 超过 100% 的，
既是欠卡债，personal loan 等等。

对这群人而言，每月可以用剩 10% 来当“投资”和其他规划（可能只是 FD)，
也已经是很高兴，很令人满意，认为是合理的规划。
NEC 用去 80-90%，在大部分人的 belief 里，是合理的，正常的，可以接受的。
如果和他说 NEC 80-90% 是不理想的，不平衡的，需要改善的，
他反而是不能接受的。他们在 ignore 着，在收入不高，生活不理想的情况下，
NEC 用去 80-90%，有固定储蓄 10%，还会叫作有问题的。

个人的体会是。。。
初期做这个 jar system 时，
第一个有如被雷劈到的惊讶，culture shock，其中一个就是在做 NEC 55% 的时候。
也是在实行他之后，我们才发现到自己不足（当然，首先你必须肯接受使用这个 system，
即使还不明白当中的含义。如果是一味抗拒的话，那自然会继续认为自己目前没有不好）。
当为了符合 NEC 55% 的时候，才会让自己发现到，原来自己每月 NEC 就已经花掉了
90% 的收入，多年来并没有别方面的规划和分配。
生活也过得很乏味，似乎每天都是做着同样的事情。

同时，这也会让自己觉醒。。。如果有些什么突发事件，需要到额外的花费，急用，
自己又到底剩下多少余力去应付？想到都会开始怕了。
当我们肯接受 NEC 应该只占 55% 或以下的时候，
我们才会发现到自己目前做得不足，才会担心，才会怕，才会肯积极改变。
如果我们一味坚持自己每月薪金 80-90%，甚至 100% 花完在 NEC 上是对的，没有问题的，
那我们多数是不会承认自己的不足，自己的过失，也不会感到害怕，更加不会去改变现况。

也有很多人一开始就会觉得 NEC 55% 是笑话，或许是因为认为办不到，不可能办到，
所以也就索性不要去做了，不肯去 practice 了。
很多人就因为发觉自己已开始的时候连 NEC 55% 的门栏都过不了，就干脆不要做了。
毕竟要承认自己的错误和不足之处，是件痛苦的事情。
他们也可能会和自己说。。。等到我薪金提高了，收入提高了，符合 55% 了，才来做。
但是，之后多数的结果是。。。每当薪金提升后，他们就不断地换大间点的屋子，
换辆新车，大辆点的车，花红拿完去出国旅行，等等。。。
结果，薪金收入是提高了，但是依然还是做不到 55%，而且多年来资产也不见得累积得起来。

其实，关键在于肯去做，肯去开始改变，肯开始规划。。。
哪怕是开始时 NEC 90%，FFA 2%，EDUC 2%，LTSS 2%，PLAY 2%，GIVE 2% 呢？
肯开始，肯改变，自然就会慢慢的设法开源节流，同时懂得慰劳自己，不对自己太过刻薄。

也会有人认为，既然目前钱不够用，又无法节流，那就得拼命开源。
如果 NEC 60%，那么就 40% 全部 FFA；如果 NEC 90%，那更加应该 10% 全部 FFA 才对。
其他的什么都不需要。。。直到自己富有为止。
数学上，他们认为这是较快的方式。。。
可是，积年累月地重复算。。。即使每月不断的储蓄 50% 全部在 FFA 上，
目标还是很遥远，5年不到，10年不到，甚至可能 15年也还是不到。
即使提高收入 50-100% 了，开支压住，没有增加消费，每月 FFA 高达 40-50% 了，
还是觉得。。。资金依然有限，储蓄依然不够，达标的时间依然还是很长。

相反。。。懂得平衡分配后，多数人得到的结果都是路反而似乎走得比较快，而且人也没那么苦。
这数学上是解释不到的。。。这。。。该怎么说才好呢？
呵呵。。。做了后自然就懂。

～夜孩子

夜孩子为某大马论坛红人。因为太过高人，所以不能告诉大家出处。