At most times, I feel like I have the perfect day job.
Why?
I am not confined with a 9 to 5 job. Because of this, while I am at work and patiently waiting for doctors, that is already spare time for me. And as Robert Kiyosaki says, "Wealth is created by what you do on your spare time." During these times, I am able to do online marketing, read books and write blog posts about financial planning.
And right now, right here at the hospital, is writing time for me -- which I consider as work with purpose and meaning. And I love doing this every single time!!!
The 5-Jar Money System
I was reading an old newsletter from the Truly Rich Club about dividing your income and I thought of sharing it with you here. This is the same system that I used when I began my journey towards financial freedom back in 2013.
Browsing through Facebook earlier, I read a post by J. Randell Tiongson that says, "Budgets allow you to pay now, so you can play later."
There are those who do budgeting money very seriously -- complete with Excel files of their daily spending. Once upon a time, I tried doing that using an app wherein I enter my every expense. I lasted for only a couple of days and gave up. For me, it was pointless listing down my expenses and see where I can save from that list.
This 5-Jar Money System works better for me.
How?
Everytime money comes in, I would just divide it into the following jars. That simple.
So here are the 5 Money Jars:
1. Eternity Funds are your tithes to God. My mentor taught us to call it as such because we are investing into eternity. This is my very first expense -- giving to God the first and the best, and not the leftovers.
2. Everyday Funds are for your expected expenses -- food, gas, clothes, etc. If you run out of money in this jar, you stop spending, period.
3. Emergency Funds are for your unexpected expenses -- car repairs, house repairs, etc, -- which should be the sum of at least three months of your monthly salary deposited in the bank for easy withdrawal.
4. Enjoyment Funds are about 5 to 10 percent of your income for vacations, movies, restaurants, spa, and any fun thing you want to do -- because what is life without play, right? Plus we never want to feel deprived. As for me, I set aside 10 percent for this.
5. Emancipation Funds. This is where you invest at least 20 percent of your income into the stock market. That is how you become wealthy.
Choose Which System Works For You
You can do the complicated stuff, or this simple money jars system. See which works for you.
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Be very blessed!
