2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44
Today we want to tell you about an effective budgeting system - the pitcher method. Its meaning is that every month you distribute money into six jugs, each of which is intended for a specific spending. This method will help you spend your money wisely and only on what you really need.
Pitcher 1: spending on essentials (55% of your budget)
The money in this jug is for daily expenses and bills. This includes the following: rent, mortgage, utilities, food, transportation, clothing, medical expenses, taxes, and so on.
Pitcher 2: spending on entertainment (10% of your budget)
The money from this jug can be spent to pamper yourself. You can buy an expensive bottle of wine, get a massage, or buy tickets to the cinema, theater, and so on. You can use this money as you wish.
Pitcher 3: Savings (10% of your budget)
This is your personal "gold reserve", the key to financial independence. The money in this jug should be used for investment, it provides you with passive income. You should not spend this money until you have made a profit on your investment. But even in this case, you are not spending the "gold reserve" itself, but the money that it brings you.
Pitcher 4: spending on education (10% of your budget)
The money from this jug should be spent on tuition fees, as well as on self-education. Invest in your development. You yourself are your most valuable asset, never forget this.
You can spend this money on books, paying for courses - in short, on anything that will help you develop your skills and abilities.
Pitcher 5: Reserve Fund (10% of your budget)
In this jug, you save up for large expenses, for example, for equipment, a car, recreation, and so on. It is necessary to replenish this jug on a monthly basis, as it is a guarantee of your financial stability and confidence in the future.
Pitcher 6: Gifts and Charity Expenses (5% of your budget)
Use the money from this jug for gifts to loved ones or for charity. You can donate money to an orphanage, an animal shelter, or simply to help those in need.
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