Why the Money Jar System Works (and Maybe It'll Also Work for You)

For someone who tried several methods to budget her money effectively, the Money Jar System was the one that worked the best for me. I was blessed to still have my job on a work from home set-up so I figured that it might be a good thing to talk things through with myself.

The Money Jar System was introduced by T. Harv Eker, author of Secrets of The Millionaire Mind. The main idea is to divide their money and allocate it accordingly to different categories. In my recent post, I mentioned about the different categories one should have ideally.

I started this method August 2020 and for some reason, budgeting now doesn't feel like a chore. Shifting to this method wasn't easy. I had lots of negotiation with myself. I was feeling resistant to change since I was slowly trying to overcome an old habit. But acknowledging these feelings are valid and are all part of the process. (Namaste.)

I figured out what were my REAL priorities. Since I was also trying to experience a change in my mindset, I figured what my priorities really were since that is where my money is being allotted to. I was saving for myself, saving for me and my boyfriend's future, allotting skincare for my parents (check on your parents, they might also like that eye cream ;) ); things I believed were my priorities but my budgeting before says otherwise.

It helped me save consistently. Looking at the percentage I was supposed to save, I noticed how little 10% was. I harshly told myself "O, 10% na lang yan ha. Jusme ka, baka di mo pa makayanan 'yan." "E 'yun nga ba't kasi ang liit lang ng itatabi mo?"Lots of debating with myself (Madalas talaga kami mag-meeting) but I still tried it. The result? I was able to save at the end of 2020 an amount that I NEVER got to save since I started working. It was effective since it was a "small amount" that I still set aside CONSISTENTLY that it managed to become a habit. That was the key point of it— making it a habit that it just comes naturally.

I wasn't depriving myself. Reward yourself, too! Since I was also having allotment of my budget for stuff I wanted to check out and not just add to cart, I get to enjoy the best of both worlds. If it was beyond my budget, I'll just have to wait a bit until the next pay day. Nothing's wrong with having allotment for simple things you'd get to enjoy most especially of you worked for it.

Changing habits doesn't happen overnight; negotiations will arise and that's okay. It wasn't easy to give up my old routine—it really isn't and that's okay. Acknowledging these feelings as they arise helped me know where and on what to focus so I can finally develop a healthier financial planning habit for me.