Jug method that will save you

Jug method that will save you

The jug method is one of the most effective ways to manage your personal or family budget. All you have to do is to distribute the money you plan to spend on six jugs. Each pitcher is responsible for one sphere of life. This way you will not spend more than you have planned.

Jug 1: the most necessary (55% of your budget)

The money in this vessel is for everyday expenses and bill payments. They will also cover your rental, transportation, taxes and food costs.

Pitcher 2: Entertainment (10% of your budget)

You can spend this part of your budget on purchases that you don’t usually make. For example, you can buy a bottle of expensive wine or go somewhere for a weekend. Dispose of this money as your heart desires.

Jug 3: savings (10% of your budget)

This is the key to your future financial independence.The money in this bank will be used to invest and create passive sources of income. You do not have to spend these savings until you have complete financial freedom. And even in this case, it is worth spending only the money that you received from these savings, but not the savings themselves.

Pitcher 4: Education (10% of your budget)

The money in this vessel is intended for your further education and personal growth. Investing is a great way to invest money, and you are the most valuable asset. Never forget that. Spend these funds to buy books, CDs or courses. All this will pay off later.

Pitcher 5: Personal Supplies (10% of your budget)

You can use these savings for large purchases. Use them to buy a plasma TV, pay for subscriptions or car. This is the so-called your reserve fund, which must be constantly replenished.

Pitcher 6: Charity and Gifts
(5% of your budget)

Use this money for gifts for birthdays, weddings and other holidays. You can also donate them to help cancer patients, an animal shelter or simply help the poor.

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