Eker’s Jars and the Millionaire Mind Philosophy

T Harv Eker’s Millionaire Mind Takeaways

T Harv Eker JarsAs I mentioned in my last post, there are many things that best-selling author and coach, T. Harv Eker (“Secrets of the Millionaire Mind”) suggests that differ from mainstream financial advisers that can I relate to. In the short time I’ve started to search, I’ve found that most advisers recommend reducing your debt as the number 1 best way to be financially well off. It’s not that I don’t want less debt, because I do.

But I tend to agree with Eker that its better to focus your energy on creating good financial habits, such as allocating amounts of your income regularly, rather than only focusing negative energy on paying off your debt.

Eker’s Concept of the 6 Investment Jars:

  • (FFA) Take 10% of your after tax dollars towards a financial freedom account (You can never, ever, ever touch the money that you invest, only the profits that come from it. Invest it in passive income opportunities)
  • (NEC) Take 50% towards paying for your necessary expenses
  • (EDU) Take 10% towards education savings (Courses, books, seminars, software, etc invest in your self)
  • (LTSS) Take 10% for long term savings funds (ie Travel, Contingency (instead of the negative term, Emergency), Kid’s College, Car expenses, etc)
  • (GIFT) Take 10% towards charity and gifts
  • (PLAY) Take 10% and put it towards an account that you can do whatever you want with, but you HAVE to spend it! Do something luxurious like rent a limo, order expensive champagne, etc

Note: If you are self employed, its highly recommended that you have another jar or ‘account’ that you put your tax dollars in before you separate it out into the above accounts.

There are other variations of this system out there, but for me, the concept of this one sounds worth a try. Eker’s theory is that you have to actually buy jars, as you will have a visual reminder of what you are saving and working towards.

My husband and I have implemented this system, with clear shoe boxes, and it reallly helps for us to remember what we need to work towards.

As a speaker, Eker has many quotes and pearls of wisdom. Here are just a few.

T Harv Eker Quotes

“You have to believe to see.”

“The number 1 reason most people don’t get what they want is that they don’t know what they want.”

“What you hear, you forget; what you see, you remember; what you do, you understand.”

Has anyone used the jar method successfully?

3 thoughts on “Eker’s Jars and the Millionaire Mind Philosophy

  1. I suppose I use a variation of the jar method… I have separate savings accounts that each deduct a certain amount from my check account shortly after pay day. The whole process is automated so by the time I really see my money it’s been put into the different ‘jars’ and without much time or energy on my part I have money in funds for things like travel, a down payment, emergency savings, christmas presents etc. I think I’m in a slightly different situation than you are right now, possibly with a little (though not much) more expendable income so this system works for me, but it could work with smaller amounts for you as well. I like it because after I set up the amount to be transfered each month I don’t really have to deal with it again until I’m ready to spend the money for that specific purpose. And, since the money is gone shortly after my paycheck clears, I don’t even miss the money, instead I enjoy watching my separate accounts grow.

  2. Thanks for sharing, Ariel! I love T Harv! and am starting to work with a new financial advisor. I am going to teach him about the Jars. I will keep you posted on the progress. 🙂

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