Millionaire Mind Lesson 1 – The Jar System

FadzuliWealth MethodsLeave a Comment

The first lesson to be rich is to learn to manage money well. If you have been reading Robert Kiyosaki’s book Rich Dad Poor Dad, the rich will be richer because of this. Money management and money set aside for their FInancial Freedom, Long Term Spending, Debts, Education, Necessities, Play & Give.

How many of us have never really gone out for Holidays? How many of us have intended to buy something but never really got it? And when you get it, you end up broke? 

Happen to you?

So how can we solve this problem?

The Jar System

What is exactly the Jar System? Well its just JARs that we need to fill up and divide accordingly when we receive income.

The first Jar…

Financial Freedom Account ( 10% )
– This is the money you cannot touch except for FUTURE investments and must be very sure that the money will grow from this account. It cannot be used for spending..
– It is also your savings account.
– I would love to call this a legacy account because this is our BIG GOOSE ( I will talk about it another time ). 
– This is the most IMPORTANT out of all the other JARs.
– Before you set aside for others,
YOU MUST set this aside.
– Set aside 10% every month for this.   

Debt Account ( 5% )

– At any point of time in our lives, we will have debts. Debts to families, credit card debts or anything else. – – This will help you pay back your debts consistently. You have to set aside a sum for it else you will find yourself always in debt.
– Set aside 5% every month for this.    

Long Term Account ( 5% )

– Want to buy your LCD TV? Buy your Dream Car? Buy your Dream House? Go for that Family Holiday? All this requires a certain form of capital right? 
– I would like to call this my Dream Account too..Without it its difficult to attain the things you want.
– I realise I tend to make excuses for not being able to travel because I’ve never really set aside money for it..So my target is to travel the world by January 2010. So I need this account up badly!!
– Set aside 5% every month for this. 


Are you still with me here? Now come the next MOST important Account!


Education Account ( 10% )
– Like it or not whether you are a kid or an adult, education is very important right? Times are changing and technology is evolving so fast. You need to learn and learn all the time, there is no end to that and this requires funds too!
– To buy books, attend classes, attend courses, attend seminars, to buy CDs. All this requires money. So let set aside for your own personal growth.
– A Person’s Capacity to learn is unlimited. If people tell you they can’t go back to school and learn. They are freaking lying to themselves because by doing so we are limiting our beliefs and limiting our potential. Just like the Hard drives today, its keeps growing in size…We too need to keep that storage open and go learn and learn…
– When you are stop learning you might as well be DEAD. SO DONT STOP LEARNING!
– Set aside 10% every month for this.      

Necessity Account ( 55% ) 

– This is where you use this money to buy or pay for what is necessary. Your Bills, your Food, your Transportation, Mortgage, Rentals, your Clothes and so on.

Play Account ( 10% )

– I make a mistake of not having this also.. I hardly enjoy the money I make because it comes and go and hardly there’s nothing left for pleasures. So let’s set aside for Cinemas, your Favorite DVDs, Flowers for your Partner or anything that will make you happy!!! Ooh yah your branded stuff comes from this category!!

Things that make you happy!!!
– Set aside  10% for this.

and Finally 


Its better to be in a position to Give then to RECEIVE

Give Account ( 5% )

– I believe that I mention this so many times before…When you give somehow GOD will show you more opportunities, reward you with more and more things. Abang Abu said this before, “When you invest in the All Mighty many rewards will come to you…Miracles will happen from time to time…Its Just MAGIC”. 

Believe it or not…that happened to me all the time. 

So now we know the THEORY! Let’s put it in practise…This is what I did yesterday after closing a deal and get paid for a past job…


My Own version of the Jar Calculator
Download the excel spread sheet. Click here to download the Excel Spreadsheet


In my case I have two sets of Jars. One for Business and one for Personal. Eh wait how come you have two?

Don’t MIX your Business Funds with your Personal Funds. That will be detrimental to your success because your BUSINESS is also an entity. It also require its FREEDOM account and the other components. For the business side, the only difference is the NECESSITY GROUP, I added sub division such as My SALARY, Marketing Funds and OTHERs ( Rentals, Transport… ).


I made that mistake and that shorten my growth! I could have grown much much faster if I have done this earlier…

So if you are doing a PART TIME BUSINESS or  YOUR OWN BUSINESS consider doing this. If you have two or more business. SEPARATE THEM ALL!
Punching the NUMBERS..

All the precalculations are already done. All you have to do is punch the numbers into the Yellow Boxes. So from there you can see how much needs to be allocated to each Account. 

Need to make more columns?

Just highlight the columns as shown above and copy it to the next column. All the calculations should be intact unless you did paste it at the wrong place. Just UNDO and do it all over again. :)

Click to enlarge above image… See how the salary from the Business Jar is transfered to the Personal Jar..

Well I hope after learning this today. You have a better idea on how to use this JAR SYSTEM to set you FREE from Financial and Unhappy moments…

This process require discipline and you need to practise this in REALITY. My suggestions is to use Jars. If you dont have Jars, use Tins boxes or you can be like me I use ENVELOPES to start with.

So let’s do this together and practise what we learn!! All the best to making millions and billions..

My Own version of the Jar Calculator
Download the excel spread sheet. Click here to download the Excel Spreadsheet


Do drop me any comments!

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