Hey, it's Jesse Eker! and I'm excited for you to watch this video right now. Now, when I was young, my dad, T. Harv Eker, taught me this really important lesson. My dad came up with the 6 Jars System. It has worked wonders for thousands upon thousands upon thousands of people to not only get more in control of their finances, but also help them actually become financially free. Now, we've created this worksheet for you You can fill it in online, or you can print it out. It's gonna actually take you through the 6 Jars System so that you can personalize it for yourself and see how it works. Now, the Jar System is just a money management system which is six different jars. And the jars are a metaphor, okay? We like to use jars because you can actually see them. You can see the money pile up. But now that online banking is so big and there's lots of different advancements, you can always open different bank accounts, and that's what I personally have.
When you make your money, 100% of your money, you divvy up into the different accounts. What that does is Your things that you need to survive. Things that you just wanna blow money on. Where you are giving back to charity and contributing. Where you can pay for investing in yourself and in educating yourself to a higher level. This account is geared to help you become financially free. And so you have these different accounts that you use all the time. When you get the money, you then divvy it up through the different jars. In Harv's system, he has specific percentages that you put into each jar. One of the most common questions that we get is, What I need to at least express to you is Once you get in the habit of managing your money, once you started making more of it, you continue to stay in that habit.
There's a really great example of someone named Michelle. Michelle came to Millionaire Mind when she was dead broke. She had basically no money. And so, she learned the Jar System, and what she decided to do was, she decided to manage $1. She took $1, and she split it up into the different jars. Then the next week, she took $2. Then the following week, she did $5.
Then the following month, she did $10. Then the following week, she did $20. It continued to escalate. And she did every month or week, but she kept doubling it. By the time, by the end of the year, she was managing a thousand dollars. And now, guess what? She's a multi-multi-multi-millionaire because she was able to not only manage her money, but she was able to invest her money really, really well. The ways that we taught her. And she continued to make a lot of money. Then you don't run out of money. Then everything that you do has a designated place for it. Holidays come up. You have a designated place where that money is stored. You want to buy something for yourself. Well, is it something that's impulsive? Use your play account. Rent's coming up or your mortgage is coming up. You have money set aside for that. You never have to dig into any other area. This is where you wanna go with managing your money. I gotta say, when I finished college and started to self-fund myself... when my dad cut me off and said, "It's time for you to get a job and time for you to make your own income," and stuff like that, I said, "Okay, that's totally cool.
I'm ready to get going." That's when I started heavily managing my money. I can't tell you how much of a blessing it is to have that money managed. It's not only a control thing, where I feel so much more secure with our finances, but it feels good to know that I could go on a 21-day vacation and I have that money already set aside, and it doesn't affect anything else in my life. That's because the way we manage our money. We have done extremely well with our finances because we manage our money.
For the last couple years, about eight years, we've been taking almost 35% of our income and investing that money into different income streams and different investments. Last year, we looked at our net worth, and it was over a million dollars. That's because we managed our money. If we didn't take that money, if we didn't take that percentage, then we would not be able to have that net worth. That money could be gone. It could be blown in different areas. So, managing your money is so, so important, and is really the biggest difference between successful and unsuccessful people. So right now, I want to encourage you to download the 6 Jar worksheet to fill in your own personal Jar System and create it for yourself.
Right now, I'm gonna answer a couple quick, common questions that we get and hopefully help you through some of your questions that you have. So, the first question that we get all the time is, what if I don't have... one of the guidelines for the necessities is 55% of your income should go to your necessities. which is very common by the way, so don't feel bad, especially when you're starting this. I really want you to really understand I'd rather you manage $1 than stress about the percentages. The percentages are there as a guideline for you to look at and for you to work towards, but it doesn't mean that you can't manage your money without starting that, right? Think of it, the habit is more important than the amount, and you can get there as well.
Now, another common one is debt. So, what if you have a ton of debt? Again, it's managing your money is the habit more than the amount. If you have debt, what I would do is you take one of the jars, which is your long-term savings, and I would probably split that up into two different jars. One goes for your debt, and one goes for your actual savings. So, instead of putting $50 into your long-term savings, you're putting $25 towards your debt and $25 towards your savings. Now, why not pay off your debt first before you manage your money, right? Well, that is a mistake because what happens when you pay it off? Well, you're not in the habit of managing your money. But Jesse, I will manage your money. Yeah, right. How is it working so far? Have you done it up to this point? Managing your money is probably not new to you.
Maybe this system is, but you're probably not new to managing your money. What I say is get in a habit first, pay off your debt a little bit later. Who cares? At least you're in the habit. Then when you've paid off your debt, you're in the habit of managing your money in a very structured, systemized way that's going to help you in your future. Another question that we get all the time is You don't manage your money with your business with the Jar System. In business, you pay yourself a salary or you pay yourself a profit distribution. However you do it. So, the business is very different than what you do in the Jar System, all right? Personal finance is different than your business. Another one that we get all the time is, Every relationship is different. Every person is different. But here's how me and my wife, Jen, do it. We share our money. Some people don't, which is totally fine, but we share our money. Our main jars are all together, so we have all of our main jars. The one jar that we have different is called the play jar.
That play jar is basically where we have our own jars to play with. So, if Jen decides that she wants to go buy, let's just say, a purse, and it's ridiculous in price in my perspective, I can't say anything about it because that's her own play money. If I decide to go buy myself a nice watch because I wanna blow that. Or I want to take a trip on a private plane. If I really wanted to do something crazy like that, she can't say anything because that's my play money. What that does is it gives flexibility, it doesn't give any judgment, and it's fun. It's like you can use that play money for yourself, and there's no judgment together. Now, you can also set up a play account with your family, as well, for you guys to do together. But I really, strongly recommend that you at least set up two different play accounts so that you guys can not have any judgment on what each other are spending.
The way that we do it is we put everything on our credit card because we have great money management. If you don't have good money management, I wouldn't start with credit cards. But if you have good money management and you're disciplined, what we do is we put everything on one credit card that we get a ton of points with. We use the credit card to our advantage to get the points. Now, every couple weeks, we go through the credit card statements, and we write next to the statement what jar it comes out of. Is it necessities? Is it a long-term saving? Is it one of our plays? We write it down, we tally it up, and then we go ahead and take it out of that Jar System. We do that on a consistent basis. We never have any balance on our credit card left. It's always zero for us. Now, one other question that we get is the financial freedom account. Well, it kind of can go to your own discretion. It could come out of long-term savings, or it actually could come out of financial freedom because the business is gonna actually help you become free, right? I wanna just clear something up.
These are guidelines that you can follow. If you're having trouble figuring it out, just put it in a jar. Put it under there. Whatever feels good for you, as long as you know that you're managing your money, you're not taking advantage, and you're not trying to shortcut the system. Just be flexible with it. Don't be so rigid with it. If you're not really sure, pick one. You're not gonna get it wrong. Which then helps you when you're making more money to then invest your money and become financially free. Another question we get is your financial freedom account. We encourage you through our FreedomFirst Wealth Coaching program to invest in passive income vehicles, vehicles that are going to pay you on a consistent basis without you actually needing to spend time working in those vehicles or those investments.
So, what do you do with that money? Do you pay for your lifestyle or what happens with it? If you wanna become financially free quicker, then you wanna invest your money quicker. Like I said, over the last seven-plus years, we've been putting 30-35% of our income into investments. And we now have a net worth of over a million dollars because we continue to do it over and over again. We don't use that money ever. We use our business to make our money, and we use our investments to invest our money. We keep it and enroll it, and that's how you grow your wealth and how you continue to become free quicker. I recommend to at least put it back in there, compound, let it grow, become financially free, and then make that decision.
All right? So, all of this is coming from our FreedomFirst Wealth Coaching program, that is very unique into helping you get on the fastest track to creating financial freedom. In those pillars, there's lots of different elements. There's multiple different elements that we work on within that program. We're actually gonna be taking our next group of students in the next week or so through this eight-week coaching program. This coaching program's only open two times a year. You will be closer to reaching your financial freedom than you ever have - ever - in your whole life. We are going to be working on all the different elements that you need that are crucial to becoming financially free. We've had thousands of students go through this program and absolutely love it. If you are interested in that program, then go ahead, and there's going to be a link below the worksheet, as well. There's gonna be probably a button below the worksheet, and that is going to give you more information about the FreedomFirst Wealth Coaching program.
There are seven more that we work on with our students. By the end of this program, you will be on the fast track to freedom. Thanks for watching this video. I hope you enjoyed it. I hope it cleared up some information about the Jar System, but the most important thing is to start doing the jars now. You're never too early. You're never too late. I started my first one when I was, basically, born. I ended up stopping it when I was in college, when I was not really making any money, and I didn't really follow the system because I was "too cool." But really quickly learned again that I needed to do the system. We have lots of kids who...
parents who start it for their kids at a young age. We have lots of people in their 70s who started right then and there. The goal is to make sure that you become financially free by managing your money, because all the different ways of the system work to help you expedite that freedom. Thanks again for watching this. Hope you enjoyed it, and have a great rest of your day..
As found on YouTube