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The 6 Jars of Money Management

Updated: Mar 7, 2022

Here’s an easy way to think about your finances. Instead of trying to picture all sorts of complicated accounts and budget lines, just imagine you have 6 jars in front of you. By putting all your money into these jars each month—in the correct proportions—you’ll easily achieve financial security!

  1. Necessities Jar. Ideally, no more than 55% of your money should be used to cover necessities like rent, mortgage, utilities, taxes, food, clothing, etc.

  2. Savings Jar. 10% of your money should be set aside to help you save for expensive things you can’t currently afford. Instead of going into debt to buy a new car, vacation, home improvements or kids’ education, save the money, then pay cash.

  3. Future Jar. 10% of your money should be invested to help you eventually become financially secure. It’s for investments, retirement savings, building a down payment for a revenue property, etc. Remember, you never spend this money.

  4. Learning Jar. 10% of your money should support your education and personal growth. Basically, you’re investing in yourself. This can include courses, books, webinars, etc.

  5. Pleasure Jar. 10% of your may be set aside for luxuries and treats, like dinner out, a weekend getaway, new games, a massage, etc.

  6. Giving Jar. 5% of your money should be set aside for gifts. These may include birthday and holiday gifts, charitable donations, and acts of random kindness.

Of course, these percentages can be adjusted to suit your lifestyle. If you're interested in Financial Coaching, please feel free to call me at 416-427-4391.

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