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Saving Money Through Jar Money System


Learning how to manage your money can lead to financial freedom. There are different ways to save money, but using the jar system is quite interesting.

Saving money is for everyone both young and adults. In fact, it’s important to teach your kids to start saving even at their young age. This is the best way to save for the so called “rainy days”.


It does not necessarily mean saving in the bank because you can save money even at home. This money saving system will help you learn to make more money, manage and budget your money to enjoy a balanced lifestyle. You’ll also learn how to spend your money wisely.

The Jar Money System was conceptualized by T Harv Eker that aims to teach people about the effective yet simple way to manage money.

How the Jar System Works?

Proper money management can be rewarding in the future. To reap success, you should start implementing the system and make it as a habit.

Here’s how you implement the jar system:

Jar #1 – Necessity account or NEC (55%)

The money you’ll put in this jar is for your daily expenses and paying your bills including utilities, mortgage, rent, food, clothes and other necessities to live.

Jar #2 – Financial freedom account or FFA (10%)

You can use the money in this jar for investment or creating passive income streams. Make sure not to use this money unless you become financially free. But, you should spend only the ROI and not the principal amount.

Jar #3 – Education account or EDU (10%)

This money jar is for education expenses and personal growth. Investing for education is a perfect way to utilize your money. You can use the money for your school expenses and buying things having educational value.

Jar #4 – Long-term saving for spending account or LTSS (10%)

If you’re planning bigger purchases, you can use the money accumulated in this jar. It can also be used for travel expenses.

Jar #5 – Play account or PLAY (10%)

The purpose of saving in this jar is for nurturing or pampering yourself. You can spend the money when making extra purchases, getting a massage or a weekend getaway.

Jar #6 – Give account or GIVE (5%)

As the name of the account implies, you can spend the money in this jar for giving away in charities or foundations. You can also use the money for special occasions of your family and friends.

Read also: Importance of Saving for Emergency Funds

Using the JAR money system can help to make the most of your money. You won’t only achieve financial freedom but also peace of mind.