Money Jar System is basically a system to categorize our monthly income to different needs. Different money jar system uses different number of jars and allocation each jars should have. We at MyFinanceX have analyzed several money jar methods, and we think the best one is to allocate our money or income to 6 different jars. Those jars are:
1) Necessities: Money here should be used to settle all of your daily necessities such as food, clothing, bills, taxes, home loans or anything you think should fit in this category.2) Fun & Leisure: Money here should be used to spend on things that you consider as wants or leisure and meant to treat yourself with your hard earned money, such as buying game console, expensive dinner, mountain bike or anything else that will make you feel happy! If there is any jar that should be totally spent (or emptied) every month, this is it!
3) Investment: Money here is never spent; it's only to be used for investments such as buying unit trusts, fixed deposits, stocks, as a capital to start your business, or any other thing you consider as an investment.
4) Education: Money here should only be used for self-improvement such as buying books, go to seminars, or perhaps pay your study loans.
5) Saving: This is basically your savings jar. Money here should be saved and accumulated to be use for major expenditures such as saving to buy a house or car, your child's education, or so on, or just to keep aside as contingency funds.
6) Give: Money here should be for donations to charities or anyone in need.
You are given the flexibility to define yourselves how much percentage each of your 6 jars should have, and you may change it over time as you see suit your needs. And we believe by creating an online version of the jars are actually much more practical as nowadays for many reasons, people don't keep all their money with them at all time.
MyFinanceX positions itself as a compliment, rather than a competitor, to the other existing online financial management tools that are available out there. Having said that, as per our current observation, MyFinanceX is the only online financial planning tool that fully integrates with a proven method of personal financial management, and in this case, the Money Jar system, while other systems only provides charts and graphs for its users. While charts and graphs are effective tools for users to see their spending habits and so on, we believe by integrating a trusted and critically acclaimed money management method is most crucial in helping our users to really be able plan and manage their current and future finances.
MyFinanceX is also fundamentally flexible, in the sense that it doesn't need any bank accounts to be able to work. While this may seems like a drawback for some, but in our opinion it is the most ideal online financial planning tool, since zero integration with any banks or any financial institutions made MyFinanceX works perfectly well in any countries and for everyone who desires to have a better financial life.
This is also our main aspiration for developing MyFinanceX - an independent online financial planning tool which is fully integrated with the best personal money managing method available.