JARS System of Money Management

Today I will write about JARS System of Money Management. I first knew about this concept from my friend about a year ago. He attended an event which was T. Harv Eker's "Millionaire Mind Intensive" course. Initially I applied what he said exactly but I feel it is not suitable for me and so I tweaked the percentage allocated to suit my personal lifestyle and goals. In Singapore, we have to contribute to our CPF account and thus the percentage of income I use will be based on Net Income or the money I take-home.

Necessity Account (65%)
This account is for everyday expenses and bills. For me, it also includes parents' support. Hence, I am allocating 65% to it. This is a huge chunck of my income but I will aim to keep this constant even when my income increases in future.

Play (Shopping) Account (2%)
This money is spent every month on purchases you wouldn't normally make. To me, this is a 'shopping' account because most items that I have purchases are usually wants and not needs. I am also using this account to make sure I do not overspend.

Financial Freedom Account (10%)
This is my golden goose. I am using this money for investment and building my passive income steams. For now, I am spending them on Nikko AM Singapore STI ETF.

Long-term saving (Contingency) Account (10%)
The money I put into this account is actually for contingency use. In case I am out of job or require money urgently, I will tap into the money in this account. Otherwise, it will just be sitting in my bank account and earning the low interest rate from banks. After I have accumulated a larger sum, I will place them into fixed deposit for a slightly higher interest rate.

Spouse's Joint Account (13%)
This account is used to pay off everything for the house such as utilities, household items and also travelling. My fiance and I will contribute an amount we are comfortable with into this account. 

Education Account (0%)
Money in this jar is meant to further my education and personal growth. I have completed my studies and so this money would be spent mainly on books and attending courses or seminars. I love to read and in Singapore, we are lucky to have libraries where we can borrow books for free. As such, there is actually no need for me to spend money on books. I do buy books when I am unable to find them in the libraries or online. When there is a need for me to buy books, I will use the money allocated in my Play (Shopping) Account.

The above are my 6 jars and the percentage I am allocating to them. I hope you find this useful.