Those keen about their money are often taught by many financial advisors that to break from lack we need to save atleast 20% of our income and build from there, what we are not told is that it is hard if you don’t successfully develop the habit of managing as little as $1 ((KES.100).
True Power is in cultivating the Habit. Habit maketh Man’s Habitat is one of my favorite personal quotes in my trainings. The Chinese proverb says that habits are cobwebs at first but cables later. It is not what comes into your life that makes you wealthy but how and what comes from your life, this is applicable not only to general life but to money matters to be precise.
Having grown up in a family where my parents fought openly over nothing else but money and its management, I sought to find practical financial experts who could shed light on this matter that proved a dark tunnel for me and my lineage. I knew I needed serious financial literacy otherwise the seed in my loins is doomed in lack.
From George Clason, author of ‘The Richest Man In Babylon’ to many others, no one appealed to me on a personal and practical level like T Harv Eker author of ‘Secrets Of The Millionaire Mind.’ His 6 Jars (Account) Management System proved too easy that I would be dumb not to create a Habit around it. In his system he insists that the amount is not the main concern, habit is. Harv actually sort of guarantees that the system gives two things that assures sure supply to the degree of calling it miraculous; enough focus and ‘vacuum effect’ on your finances and two universal principles comes to effect, Whatever you focus on expands and Nature abhors a Vaccum and seeks to fill it.
Personally, it took me from being KES. 67,000 in net worth deficit (my liabilities exceeded my asset worth) in 2012 to freedom & control over my finances in using the system. It was not easy, cable tough habits are hard to break, so true that religious nut-heads coined a term for them to ignorant folks; generational curses.
So how does this system work? They can be literal jars (Nescafe 200g coffee glass jars are ideal) or simply bank or mobile money accounts (I preferred banks accounts), this is the breakdown;
- Expenses Account (50-55%): Money put here meets your essentials (I have been working with 50%). Calls for faithfulness. Faithfulness begets Abundance.
- Financial Freedom Account (10%): Money put here is for active investments, life insurance, mutual funds etc
- Long Term Saving (for Spending) Account (10%): This serves to bail you out within the year, rainy day scenerios. It is your umbrella in case of emergencies or when shit hits the fan.
- Play Account (10%): This is a Spoil yourself & family kind of money. Blow it on a full treat at the spa if you want, all leisurely activities apply. This can be your vacation account.
- Education Account (10%): This is for personal development tools, get that business tutorial, pay for that business webinar etc. It will be catastrophic for your income to grow and you don’t as well.
- Give Account (5-10%): This account is to be used for acts of charity, identify an orphan and sponsor their education, even if its as low as KES.5,000 per term. Some schools have even lower fees and some students have struggling parents or guardians. Be a blessing to the underpriviledged. If you ascribe to church, this account makes your place to keep your offering/tithe.
Friends, the practicality of the system is so orderly that I finally believed that Money has a soul to itself and it is not attracted to chaos but to an organized system.
Financial miracles will follow and your Baba shuka na usitumane (Come Lord by Yourself) crisis prayers will be simplified by more than half. Remember, its all in the habit level whether supportive to your wealth of want. I have seen results and people who have interacted with the book have been remarkably positive.
In the wise words of Benjamin Franklin; Wine, Women, Game and Deceit, make Wealth small and Wants great. All these four can alter habits but cultivate a habit that is immune to them. Get the book if you have to.
To your increase.