6 Jars that can help you on your way to be debt free

Here’s a common scenario that happens to every Pinoy…

The 15th of the month comes and everyone’s excited? Why not? It’s PAYDAY once more!

People claim their pay slips and the next scenes that go down lead to what we all call FINANCIAL DISASTER.

I am not an exemption. Everyone went through this story at least once in their life. For some others, it’s already a habit… It’s a cycle that they go through twice every month. 

And what’s this situation?

So, we get our pay slips from the HR office. We count the bills and see there’s enough to spend for the day. We go to the mall to pay our bills, get groceries for the next weeks, but we also lose our minds when we see all the Sale and New Releases. We think, “it’s okay to buy, it’s discounted anyway,” or “I’ll buy just one, I can’t miss the promo sale of the new release watch.”

These and more all lead us to unplanned expenses. Later, when we go home to check how much is left, we scratch our heads because there’s no more left for other necessities, let alone some emergency funds. What happens next to this?

We borrow money from friends or family members. Some others even have to take offers from loan sharks which cost them 20% interest of the amount they borrowed. 

Juan dela Cruz, it’s time to change your style and aim for financial freedom. Dump the materialistic desires and spend your money wisely.

So, today, to help you organize your accounts and be debt free, we present to you the JARS money management system.

Basically, using this system, you split your money up into six different accounts, and you have percentages of your money to put into each account. You can use bank accounts or actual jars.

So what are these jars and what percentage of your income goes into them?

For every peso you earn you sort it in the following six “jars” labeled as follows:


    This financial jar should contain 55 percent of your income.

    What’s it for?

    This represents all the fixed costs you pay every month like house rent/amortization, food, water, electricity, and other bills for internet, car mortgage, mobile plan, etc. All these items are important for your daily living, hence taking most of the percentage of your income.

  2. 2 FFA – Financial Freedom Account

    This financial jar should contain 10 percent of your income.

    This will serve as your investment to help you get additional income without working extra hours. We call this passive income. This includes investment on stocks, insurance, real estate, and other means of getting additional profit.

    Some pinoys allot money for their FFA to increase their pension upon retirement. Some others use these funds for huge emergencies like surgeries, illnesses, accidents, disasters.

  3. 3 PLAY

    This financial jar should contain 10 percent of your income.

    Of course, you deserve your own little rewards too for a job well done in the course of 15 or 30 days of working. This fund is where you can get your budget for some leisure time, new stuff and gadgets like phone or laptop, or a simple date night with your loved ones.

  4. 4 EDU - Education

    This financial jar should contain 10 percent of your income.

    Learning never ends. For a single adult, you also need to continue your education. Use this fund for taking seminars, buying books, enrolling to new courses or signing up to trainings. For parents, you use this for your children’s tuition and other school needs.

  5. 5 LTSS – Long-term Savings

    This financial jar should contain 10 percent of your income.

    “Everybody needs a little time away,” they say. We need to replenish all the lost energies from months of grueling work. If you allot 10 percent of your income for vacations, then by summer, you’ll have enough budget to go see your favorite resort in Siargao or El Nido.

    This fund also includes a budget for the rainy day season, big purchases like buying a new house, medical expenses, and other unexpected expenses.

  6. 6 Give – Charity

    This financial jar should contain 5 percent of your income.

    Let’s not forget to give back and share our blessings. Not everyone is blessed to get the opportunity to go to school and win a nice position in a company. Let’s help others survive too. We know how life-draining it is to miss a meal in a day. So just imagine those who only eat once a day. Some others even eat every other day.

    Pinoys are naturally empathic and helpful. Spend some money on donations too and it will come back to you a thousand folds.


You can change the percentage of the money you put on the 6 jars depending on your needs. Feel free to tweak it but be sure to fill every jar and later on enjoy true financial freedom.

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Introvert, wanderer, blogger, foodie, a hip-hop music writer, and one of the co-founders of a tech start-up company called GigsManila.