6 Jars Money Management System

6 Jars Money Management System

If you’re interested in personal development, it’s quite possible that you’ve heard about 6 jars money management system. This method is based on one simple rule – you should divide your money into 6 groups, but you don’t have to and you shouldn’t divide it equally. This method should help you in managing your money the best possible way.

This is exemplary division of your monthly income:

  • 1. Necessity Jar (NEC – 55%) – phone bills, food, water, gas, electricity etc.
  • 2. Financial freedom Jar (FFA – 10%) – money you should invest in real estate, gold, funds, debentures etc.
  • 3. Education Jar (EDU – 10%) – money for books, courses, etc. You should educate yourself all the time and invest money in your development.
  • 4. Long-term saving for spending Jar (LTSS – 10%) – money for bigger, occasional spending – new house, TV, computer, holiday.
  • 5. Play Jar (PLAY – 10%) – you should spend this money every month for something interesting, funny and important for you – new watch, shirt, weekend in a 5-star hotel, short vacation.
  • 6. Charity Jar/Give Jar (CHARITY – 5%) – you should buy a gift for someone, give this money your family or give it to charity.


You can change the percentage of particular “jars”. Someone with really low salary will be forced to increase percentage in Necessity Jar. On the other hand – someone who earns 20-30 thousands dollars per month shouldn’t spend so much money for basic needs like food and bills.

As a “jar” you can use separate bank accounts (in the same bank or in another one). After logging into your bank account you should be able to open another account in the same bank without even going out.

There is only one question before the end of this article – what to do if you earn really little money and you spend them all for your bills, gas, food etc.? In this situation you can give only 1% for another accounts and spend 95% of your income. It isn’t huge difference, but it will help you to make and keep very important habit – habit of saving and proper management of money.