6 Jars Money Management System

Image from Propertwaltz

I first met the concept of the 6 Jars Money Management System after watching a local variety show on Sunday evening a few years ago. The show featured a local beauty queen turned actress who gave her pith advice on how to live life while saving for the long-term. At first I said to myself why should I be taking advice from her, when it doesn’t feel like I couldn’t come up with the idea myself, or so I smugly thought.  After all we should never underestimate the power of individual zeal. But no dear, I put on skeptical and cynical glasses and watched her explanation.

And so to cut to the chase, I gradually felt convinced with her experience that the 6 Jars Money Management System is a solid system of financial management. It’s a very good one that I actually put to the test. So here I smile and say Thank you Miss.

Now, those familiar with the 6 Jars Money Management System will so often refer to T. Harv Eker’s Secret’s of the Millionaire Mind. Those who have read this far will probably run straight to google with the keywords “6 Jars Money Management System” out of irritation. By all means, run a search and get educated.


Before I set out to explain my personal take on the 6 Jars, it is necessary that I explain the basic set-up of the JARs System(which I shorten for simplicity). There are basically 6 Jars, each following a purpose:

JAR 1: Necessity Jar (NEC – 55%)

This jar serves to cover all of one’s basic expenses: be they food, water, electricity, rent, bills, etc. Basically this describes your necessities that you live by daily. You learn to manage your money wisely with your necessities. This is the 1st important of the JARs system

JAR 2: Financial freedom Jar (FFA – 10%) 

This one is important but stands second only to NEC jar. Still it is not lesser in importance but should be kept in mind all the time. The amount you fund in the FFA jar is placed on investments with high returns and side-income or businesses that have a steady profit. 

JAR 3: Education Jar (EDU – 10%)

Your teacher in college will probably tell you that you will not stop learning, even after you leave college. In fact, most of us professionals will be taking up post-graduate degrees. So then, the EDU Jar is basically tailored just to that, education. But herein we do not limit our understanding of Education to college education, doctoral education, masters education, no! Anything that is worth our time to learn belongs to the EDU Jar. Learning to play guitar, joining a karate class or a swimming class, all these are covered by the EDU Jar. Now even going to the gym sounds like physical education.

JAR 4: Long-term saving for spending Jar (LTSS – 10%)

If at some point in life you tell yourself that you wanted to buy a house or real estate, or go travel abroad, then this jar is specifically made for that. The LTSS Jar is used for planned events in the future that you wish to enjoy, but unlike the PLAY Jar (which I will explain next), this jar has a long-term time-frame. In my opinion, the LTSS is the 3rd most important jar in the JARs System.

JAR 5: Play Jar (PLAY – 10%)

My favorite jar. Just because I am used to enjoyment more than anything in life. Money in the PLAY Jar is money used for short-term experiences. Say you want to go watch a movie, or you want to buy the latest gadget, video games or whatever it is to your heart’s desire, then spend it from here. But caution, spend wisely and moderately.

JAR 6: Charity Jar also called Give Jar (CHARITY – 5%)

My least favorite jar. No, I am joking. The charity jar’s sole purpose is to give to the less fortunate. There are various institutions out there that give out to the needy, we also include our understanding here the environment and animal welfare. Also, organizations and other institutions that serve a greater cause for society and the world at large are covered by the CHARITY Jar.

You will notice that there are percentages associated with each Jar. Basically salary or income is divided proportionately to each percentage. This way your resolve to immediately breakdown to each Jar’s objectives accordingly and systematically. 

There I’m done with the basic set-up. Now here is my personal take on the JARs System:

My Salary is 15,000.00 php less taxes and other deductions.

Thus I have:

NEC Jar       -- (8,000.00 php)
FFA Jar       -- (5,000.00 php)
EDU Jar       -- (500.00 php)
LTSS Jar       -- (1000.00 php)
PLAY Jar       -- (300.00 php)
CHARITY Jar       -- (200.00 php)

You will now notice that I am not following the percentages. That’s another beauty of the JARs System, you can choose to go per mil and/or by hundreds*. The trick to my set-up is to ascribe to a lifestyle that is well within means but gradually change as one’s financial make-up improves. Take note that the 3 most important of the 6 Jars(NEC, FFA, LTSS) are all anchored with different deposit accounts with different interest rates**, and each is faithfully deposited and nurtured over the course of one’s career and lifestyle. The remaining 3 (PLAY, CHARITY, EDU) are all lumped together in one deposit account only(or if you want, differently, just as the first three important Jars).

So you want to go out on weekends, check your PLAY Jar, is there enough money? Yes it’s good as go. Then by all means GO! So you want to go out of the country, you want to avail of that travel package to North Korea, I mean, South Korea. Check your LTSS Jar, are all expenses covered by it? Nope. Okay maybe sometime in the future, just keep on saving. Do you have enough to give out? Check CHARITY.

As you live out the JARs system, you gradually realize the importance of saving, investing and planning for short and long-term events over the course of a lifetime. You will then enjoy how to be frugal at certain instances as you deem it necessary to cut back, and you will also remove guilt when you plan to mindlessly spend for a certain moment in time. You know which Jar to consume and until when. 

You give yourself a pat on the back through a well thought-out and balanced budget. It is hassle free.


There’s not much left to explain as I’ve said all the things relative to my experience with the JARs System. But I will leave out one last advice as a wrap up to the JARs System: “to live freely, one must manage wisely and timely”.

* By budgeting in terms of thousands and/or hundreds.

** This is left to your own ingenuity on how you will and want to manage your money, you will owe it to your own knowledge of various financial instruments, insurance agencies, investment companies and the like.

(Written by Alex Anonymous)

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 10 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.