Monday Morning Fix (MMF)

Money, Money, Money

Isn’t it amazing, that most of us can recall a time when our earnings were low, however still managing to save a little. Then when earnings were high just about managing to saving, if at all. Does the term More Month Than Money resonate with you?

 If so you’re not on your own. More and more of everyday hard-working people are finding themselves caught in this trap of financial despair. With frozen salaries and the rising cost of living, it’s not surprising to find those who struggle with financial stewardship, utilising credit cards and overdrafts to manage the financial conundrum that life throws at them. Such as redundancy, failing health, divorce, and other sudden changes in circumstance.

It has been said “If you fail to plan, you plan to fail.” What’s your plan? For anyone struggling to get back on track I would suggest taking a look at the 6 Jars Money Management System.

Jar 1: The essentials (55% of your budget) covering daily expenses, bills, travel, rent/mortgage and food.

Jar 2: Entertainment (10% of your budget) You spend this part of your budget on what entertains you.

Jar 3: Savings (10% of your budget) Used for investing and the creation of passive income. Spending here is made from profit and not actual savings.  

Jar 4: Education (10% of your budget) Money held here will be utilised future education, personal development and resources such as books and courses.

Jar 5: Individual funds (10% of your budget) Money held here will be utilised for purchases such as TV, car, vacation.

Jar 6: Charity (5% of your budget) Give to worthy causes.

Nothing is set in stone, utilise the 6 Jars to transition to a better place.