6 Jars money allocation

The best way to predict the future is to create it. Being smart managing resources you earn can be beneficial more or less. We would like to start with the basic principles managing money. This principle is formed by T Harv Eker, the author of ‘Secrets of the Millionaire Mind.’ It is pretty easy. Following this principle makes every pocket left for everything you want to do in life. Everyone can do. Let’s start.

Let’s star with the first GOLD rule: separate your savings account away from your normal expenses bank account. Otherwise your expenses and savings will mixed up and you cannot control it.

Jar 1 Necessity

This portion of money is to be paid in everyday life e.g. food, rent, instalments, fuel, electricity bill and so on. 55% of income is to be allocated for everyday spending–normal expenditures.

Jar 2 Play

Make sure that you play happily after working. Allocate 10 % of your overall income to this account or jar or a purse to pay for whatever you want. This is a reward for you.

Jar 3 Retirement

Make sure that you save 10% of your overall income for your retirement. There are many ways of investment e.g. mutual funds, stocks or a deposit book. For example, a life insurance plan with BGV is also interesting. BGV is an insurance company founded in the  German South West. BGV also has a branch on Offenburg. It is just opposite to Karstadt am Lindenplatz.

Jar 4 Education

Please also save 5% of your earnings for education. You might allocate it to buy books or an online course or any training that you can make your life better. We really believe in life-ling learning. Have you ever had a quote like ‘education is the best investment?’

Jar 5 GIVE

Also spare some 5% for donation. It means to tell yourself that you are a good person. Coz there are still many people waiting for you to help. You might find yourself useless after you heart is broken. The easiest way to help you recover from being heartbroken is to make a blood donation. You do not need to spend any cents on it. After giving out something to others, you will find yourselves useful and that really improves your self-esteem. Self-esteem is what you think about yourself, without other external judgements. So spare some funds for others.

Jar 6 long term plans

This amount is to be saved regularly in order that someday it can fulfil your dreams e.g. to buy your dream house, your dream car and etc.


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