Transcript for:
Financial Discipline and the 5-Jar Method by Sesia

hello everyone welcome back to my channel this is sesia I'm so thrilled to have you for another exciting video but before we dive into today's content I want to take a moment to share my heartful gratitude to the incredible support you shown towards my last video your comments shares and likes mean the world to me and I'm humbled by the Fantastic Community we building together thank you for the ongoing support now let's jump into today's video how well we manage our money is more important for our financial discipline than the size of our income Financial discipline is in the financial action world with an attitude of consistency self-restraint stewardship and Rel rication successful people have mastered the art of disciplining their health finances daily routine and spiritual health managing money versus mismanaging it there is a huge difference well the truth of the matter is that most people have never learned how to manage their finances properly and this causes a lot of stress many people have habit of spending everything they earn and some even treat spending as their priority when it should be and whether this is 100% you or not most of must have some very poor financial management skills and even bigger issue is this mentality or lack of financial Prudence is taught to us from the time yet if we learn better of financial stewardship it can help relieve much of the stress we are forced to deal with concerning money and thus would have profound impacts on our health in this video you will discover a simple money management system with profound implications and results called the F Char no matter where you're coming from this video is short to share some Financial golden nuggets to implement and practice right away and to help you start earning the Leger into your favor the fer method is not the only money management system that could work for you however if you do not have any money management with Amazon today then why not start by trying this one the majority of people tend to dump all of their money into one job that means they pull all of their money into one spot say a bank account and use that single pool of money to pay their bills groceries rent pay for clothes and any other expenses that has to be paid then if there is anything left they resort to spending and then some will put with what little they have left into savings usually to be quickly spent later on and worst St some result to spending first and then trying to pay their bills and fall into even more debt and never get up in short these people spend 100% of what they Le it is advised to split your money into five different pools or five different jars each with a different purpose jar one responsibilities and managing other people's money it's extremely important that you be responsible with the money that doesn't belong this includes debts that you owe such as your credit card bills they say the first step to financial success is to get out of debt take this jar and use it for that purpose as well as for any other ongoing Financial Obligations if you have debts first thing to do when you receive your income to clear this by paying back more than the premium so you can start knocking off your debt you might also allocate your repayment amount plus 10% of your each month salary for this jar account jar two giving and generosity giving and being generous is important not only to our personal lives but also to our communities and the World At Large think about setting aside 5 to 10% of your income each month for the purpose of helping someone so giving is free healthy and brings about positive change as it turns out when you stop holding on so tightly to every penny you earn more seems to find its way to you make jar to as part of your life jar three savings for a rainy day in Job 3 we suggest putting in 10% of your money each month this money is meant to accumulate until a day and you need it perhaps you have a large purchase in mind put that money in here and buy it with cash if there's even an emergency hopefully not you have money set aside to pay it off instead of falling into further debt if you want to have a jar for that big purchase and a jar for emergency savings then that's fine just keep in mind the percentages and be consistent also keep in mind if this is split into two they will grow slower but you'll have two separate funds let's say for example you had $1,000 coming in each month now that's only $100 each month can you survive without spending that extra $100 each month that's only 10% off your $1,000 income I challenge you try again consistency if you don't you likely spend it on lot of little things you don't really need it that's still on temporary want but if you do you could actually purchase that larger thing sooner for cheaper with no credit interest or save yourself from falling into debt or from cutting into your other finances from an unexpected expense the earlier you start the the longer you go those financial numbers will grow as they will with the other jars as well consistency and sticking to it is important don't be crossing your jars no there are different ways to save besides with Straight Cash the point of this jar is that so simply start a saving F of some sort however you find fit do your research which really fits for your best investing in the hope of return investing comes with its risk but it also comes with growing rewards as we all know investing could start to earn you an extra stream of income or even multiple streams down the road I would recommend not setting aside over 20% of your income for this job make sure this money has a very good chance of returns even especially immediate returns I would also suggest that you're not using all on the same investment at the same time have some diversity in your Investments and use it over time making sure that it is giving you returns that way you won't risk losing everything with one bad deal which is very very important and when you do make money on your investment you can use some of that to reinvest or put aside for future investing along with your continued investment Fund in jfor I know many of the financially when they say that you need a mentor now that is something worth looking into j five party time I mean spending time spending is important but it should come last not first if you save your spending as your last Financial priority instead of first then you'll have the relief of knowing you taken care of all of the above principles and can spend with ease of mind you you have taken a bite of your debts taken care of your responsibilities have money set aside specifically for being generous have money saved up which can be used for a number of different purposes and have money for investing now you have some very simple but very practical tools for getting ahead and not lagging behind the five jar method but remember the key once you have established these and Polished them for your own personal situation is consistency if you aren't consistent and discipline then these not any other system will be able to help you I would say this to you get out of your debt first and stay out of it unless you know how to use it as your investment tool thank you so much for watching do not forget to subscribe the channel and do drop your comments for more such videos or any suggestions