The pitcher method is effective home bookkeeping without much hassle.
Planning a home budget is not only a very important question, but also a very interesting one. Today in the article we will try to figure out what the jugs method is, what are its features and advantages. Why is home bookkeeping with it easy and efficient?
How to distribute income and expenses
The total household budget consists of the total income and expenses of the spouses. And the standard of living depends on their level. There are a considerable number of cost optimization methods, among which an important place is occupied by family budget planning.
Home bookkeeping is just as important here as the money you earn. You can lead it in a notebook (in the old fashioned way) or use your chosen gadget: a smartphone, tablet, desktop computer or ultrabook. You will keep records of all financial flows, both incoming and outgoing (what you spend on different family goals).
The method of jugs: the subtleties of use
The jug method is suitable only for those families who have a common household budget, or those who live separately and independently. Because such home bookkeeping does not accept disagreements and different sources of budget management. So you only get confused.
The general scheme of the method is that all family incomes are divided into 6 unequal parts (jugs):
- Necessary costs.
- Dear purchases.
- Gifts, help to others.
Yes, yes, do not be surprised - squandering is also included in this bright unusual "price." Because a person should indulge in the main thing, for example, not to save on health and entertainment. And home accounting allows you to restrain other items of expenditure - food, clothing, and so on.
At the same time, adding or removing funds from one to another jug is strictly prohibited. What can be used instead of jugs? These can be ordinary banks or envelopes. But a more rational option is a bank account or a plastic card.
What are goodjugsin home accounting
Let's take a closer look at the features of each of the pitchers.
1. Required costs
This includes 55% of all revenues.And this is exactly the means for which you will live for a month (utilities, food, travel, mobile communications and much more).
This “jug” is the most expensive (55%). But it may seem to many people that this is unrealistic, because 100% is often not enough for all needs. But it should be understood that if you spend all your income on everyday needs, you can never save for more global goals.
2. Expensive purchases
Usually this amount reaches 10% of total revenues. These funds are deposited on large and expensive purchases (car, equipment, etc.).
It can be beautiful furniture, for example, a complete renovation of the living room or bedroom. Such expenses home accounting combines with the noble goals of collection and hoarding. You won’t buy a chic kitchen set for the last money, and then deny yourself food and travel.
3. Savings - or financial cushion
This "jug" is monthly deposited funds that can never be spent. This is the contribution of your family to a comfortable future, ensuring old age. It is more expedient to place these deposits where they will increase (bank deposits, deposits, etc.)
Development and progress is impossible without self-education and learning. Therefore, in the home budget should be part of the cost of this 10% of total revenues must be deferred in 4 "pitcher" for their development. You can also add the cost of health.
Vitamins, drugs to improve immunity - that will not let you get sick and is a must-have. Reducing after the cost of drugs. By the way, the medical item of expenditure can be excellently reduced if you use the sites-couponers, discounts. Then you can whiten your teeth or pass expensive tests for 50-70% of the real cost.
Despite global goals, a person should not completely limit himself in everything.
Indeed, in the pursuit of a bright future, you can lose the taste for life, all the while saving and denying yourself everything. To avoid this, it is necessary to spend a certain part of the budget for their own pleasure or unnecessary, but pleasant purchases. You can spend 10% of total revenues.
6. Gifts, help
In 6 pitchers (5% of total revenues) it is necessary to save funds for the purchase of gifts and pleasant trifles for family and friends.If extra funds remain in it, they can be spent on helping the needy.
Remember that it is not necessary to spend all the money in jars. They can accumulate, and it will be a nice bonus and addition to your home budget.
So, in a general way, the jugs method and effective home accounting is presented. It may have its drawbacks (for example, there is no “debt payment”), but its creators note that with proper use of this method, you should not have debts.
You can use the jugs method at your discretion, modify them. But at the same time, one thing must be the same: to spend less than to earn and achieve your financial goals.