Thursday, June 11, 2009

How To Manage Your Finances (Money Jars)

I've found out this article in NST on June 9,2009 that I think really good and helpful for a such person like me who loves to shop,shop, shop till I drop (haih!).

Hopefully this article will help me to manage my money.........here are THE MONEY JARS:

1.Financial Freedom Account (FFA - 10%):
This is your financial freedom jar where the money is not spent, but used for savings and investments to generate more income.

2.Long Term Savings For Spending (LTSS-10%):
The purpose of this jar is to prevent impulsive buying and encourage one to save for an expensive item like going for a holiday.

3.Necessities Account (NEC-55%):
This jar is for all your daily expenses. If it exceeds 55%you have to simplify your lifestyle or find ways to earn more.

3.Education (EDUC-10%):

You must keep investing in your own education as anything that is not growing is dying.

4.Give Account (GIVE-5%):
Contributing to others is one of the most fulfilling goals in life, and one the impetus of earning more is so you can give more.

5.Play Account (PLAY-10%):
This is one of the most important jars. By celebrating your success each month, will boost your spirit and confidence to achieve more.