To master money I must manage money

T Harv Eker is my religion teachers favorite millionaire. She gave us a whole packet on him and I am now going to give you the key to being a millionaire. First you must think like a millionaire. To master money I must manage money. In our society we are always taught how to spend money but how exactly do you manage money? With 6 jars. There are two types of income: Working and Passive. With both of those incomes, you use will split it up into 6 different jars. FFA, LTSS, NEC, PLAY, GIVE, and EDU. Lets start with the FFA Jar. This is your Financial Freedom Account or FFA. 10% will go into this jar. This is the jar where you think, Never get rid of the Goose, only the Golden Eggs. Heres the story. A man and his wife had the good fortune to posses a goose which laid a golden egg everyday. Lucky though they were, they soon began to think they were not getting rich fast enough, and, imagining the bird must be made of gold inside, they decided to kill it in order to secure the whole store of precious metal and thus, they neither got rich all at once as they hoped, nor enjoyed any longer the daily addition to their wealth because unlike they hoped, the bird was not made of gold and they lost the only thing giving them their extra wealth. So the point is to wait patiently. Seriously. Don't get rid of the goose, but instead keep it forever and pass it down. My teacher gave us the example from her life. The first house her and her husband bought, they never sold it. They are now renting it. And now the people they are renting it too are paying for their mortgage. That is a passive income. And instead of selling their house back when the market was great, the kept it. The kept the "golden goose" instead of "killing it." Get it? Lets move on. Some examples of FFA are:

Stocks

Bonds

Saving Accounts

Passive Income: Making money in a business when I'm not working (Examples: Real Estate, Vending Machines, Parking Lots...)

Our goal is to become financially free as soon as possible (living off of my FFA Account)

Our next jar is the LTSS Jar or our Long Term Saving for Spending Jar. That is another 10% of your income. Don't worry. I will explain percentages later.

Examples of LTSS are:

A New Car

College

Down Payment on something

Debt

Contingency Fund (Don't call it an emergency fund...then everything becomes an "emergency")

Now for every different thing your saving for you need a different jar...BUT you can not exceed over 10%. Get it? Moving on.

The next jar is your Education Jar. This jar contains another 10% (wondering where your money for food and stuff is by now right...be patient with me.)

Now this education money is not for your kids or siblings. Its for yourself. Everyone is like a plant. You are either growing or dying. And if you are not growing, you are dying. And in order to grow, you need to learn. Be a learner your whole life. Find your passion and learn everything you can about it. You can never know too much of your passion.

Here is the answer to all your question. Your Necessity Jar. This is 50% of your money. Here is the key to your success in being a millionaire. Live simply. Financially free individuals believe in delayed gratification. Examples of Necessities are:

Clothes

Rent

Mortgage

Utilities

Food

Your last two jars are your Play Jar and your Give Jar which are both 10% each. Your play jar is for you. Millionaires spend their play money BIG. You must spend this jar every 1 to 3 months though. And spend it on what you want a lot, not just a spur of the moment thing. Millionaires play big...so play big. And your give jar is to give. Goodwill, Catholic Charities, whatever you want. Everyone needs money and if your a millionaire you have money to spend. So save some for that yea?

Now the percentages. I understand that a lot of people can't live off of 50% of their income. So you can change your percentages to whatever percentage you need, as long as every jar doesn't have zero and you can't exceed 100%. 

Have a millionaire mind. It's exciting.

Questions, comments, concerns. Comment. I'm excited.