As we’ve discussed in previous articles, understanding how to save is a key stepping stone to achieving financial freedom. 

Here, we present “The Six Jar Method” to offer a way you could manage your finances effectively.

The concept of the 6 Jar Method is derived from T. Harv Eker’s “Secrets of a Millionaire Mind.” To put it simply, it is a systematic way of splitting your income into 6 different accounts or jars to encourage financial freedom.

Continue reading to uncover what these 6 jars are! And before you get started, just a note that you can set up multiple accounts at the same bank, meaning you don’t have to go and set up six different bank accounts at different banks to practise this method. 


The first jar should be allocated to the necessities; or things you need to survive on a daily basis. The suggestion is to allocate 55% of income into this jar for expenses such as  rent, utility bills, food, transportation, etc.  By making this jar the priority, it will be significant in ensuring you have enough month to month, and that you will spend wisely and within your means. By managing and tracking your essential expenses, you will be more responsible with your finances


Part of achieving financial freedom is to build a strong monthly cash flow. After the necessities are out of the way, it’s time to begin growing your money. Money saved into this jar is meant to be invested in investment vehicles such as stocks, mutual funds etc. Remember, a 6% interest rate may not seem like much right now, but when compounded, a RM100 monthly deposit into ASNB could mean RM15,816 in ten years


A small contribution can go a long way.

This jar allows you to accumulate money for any major purchases. As a result, you will learn to delay instant gratification and avoid impulse spending. Fun fact: Studies have shown that practising delayed gratification yields greater satisfaction. Besides, money in this jar can be used for emergencies or act as your rainy day fund.


No, you don’t need to invest all your money. Feel free to indulge yourselves with things that bring you joy! The money in this jar could be used to enjoy everything that your heart desires such as that long awaited beach getaway, or simply splurging on a nice meal.

Can money buy you happiness? 

Fun fact: A survey shows that out of 12,000 people, more than 80% claim that they have gained more happiness from spending on experiences such as trips, concerts, or special meals.


Giving inspires giving. On some level, if we are better off, there’s a social responsibility to help others who require it at a time of need.

According to the data from the World Bank’s Development Research Group, Malawi, a low income country with 70% of its population living under poverty has a median annual household per capita income of $480 USD.  Imagine earning an annual salary of $35,000 USD, it’s insufficient for you to purchase a new Tesla but by donating 10% of $35,000 USD you can bring impactful changes to the lives of the people in Malawi. 

The amount is not important; it is the act that matters. For every small contribution you make, you will bring smiles to new faces.


According to the U.S. Bureau of Labour Statistics, the Consumer Price Index for college tuition fees have increased by 63% and the prices of required textbooks have risen by 88%. This further illustrates the need to ensure one’s education fund is robust. However,  money in this fund isn’t solely for college only. Education and enlightenment can come in many forms, such as enrolling yourself in workshops or purchasing new books!

Remember, you are your greatest asset. It is essential for you to allocate a proportional amount of funds to invest in personal growth and knowledge.

Some benefits of the 6 Jar Method

The biggest step to financial success is how skilled you are in managing your finances. By adopting the 6 Jar Method, every individual can learn to manage their personal finance effectively. 

This method produces a high success rate because it trains you to develop consistency in your savings pattern and builds up financial discipline, allowing you to reach your savings goals earlier. 


ALAN AI VOICE LAB. 2022. The 6 Jars: Most Powerful Money Management Technique All Parents Should Know [online] Available at: <> [Accessed 11 April 2022].

Daniel Karim. 2017. How 6 Jars Can Make You Rich. [online] Available at: <> [Accessed 15 April 2022].

Dunn, E. and Courtney, C. (2020). Does More Money Really Make Us More Happy? [online] Harvard Business Review. Available at: <> [Accessed 24 April 2022]. 2022. Why should we donate money to charity?. [online] Available at: <> [Accessed 24 April 2022].

Money Lover. 2022. Manage your money with the 6 jars system. [online] Available at: <> [Accessed 11 April 2022].

Smart About My Money. N.d. How To Manage Your Money Using T Harv Eker’s Money Jar System.  [online] Available at: <> [Accessed 15 April 2022].

Smedra, J., 2022. Using the 6 Jars System to Reach Financial Independence – Budget and the Bees. [online] Budget and the Bees. Available at: <> [Accessed 11 April 2022].

Harv Eker. n.d. The 6 JARS Money Management System. [online] Available at: <> [Accessed 15 April 2022].

Researchers: Heng Kai En, Zoe Wong

Reviewers: Muhammad Bahari

Editors: Emelia Anne, Wee Marcus

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