The 6 Jars Philosophy is a money management system designed to help individuals allocate their income efficiently. It was introduced by T. Harv Eker in his book Secrets of the Millionaire Mind. The system divides your income into six different jars (or accounts), each with a specific purpose:
1. Necessities (55%)
- Used for essential living expenses such as rent, groceries, utilities, transportation, and bills.
- Covers everything needed for day-to-day survival.
2. Financial Freedom (10%)
- This money is invested to generate passive income (stocks, real estate, businesses, etc.).
- You should never spend this money—only use the returns to reinvest and grow wealth.
3. Education (10%)
- Invest in self-improvement, courses, books, seminars, or anything that increases knowledge and skills.
- Continuous learning helps you grow financially and personally.
4. Play (10%)
- Fun money for guilt-free spending on entertainment, vacations, dining out, or hobbies.
- Keeps you motivated and prevents burnout.
5. Long-Term Savings for Spending (10%)
- Set aside money for big purchases like a house, car, emergency fund, or special projects.
- You can also use it for unexpected expenses.
6. Giving (5%)
- Donations, charity, or helping family and friends in need.
- Encourages gratitude and generosity, creating positive energy around money.
Why Use the 6 Jars System?
✅ Helps you control your spending.
✅ Ensures financial growth and stability.
✅ Encourages learning and self-development.
✅ Balances fun and responsibility.
Even if you don’t have a large income, you can start by allocating small amounts and build the habit over time.
I have used this template and it has helped me manage my money and have peace of mind and better control.