The Pitcher Method That Can Help You Save Money
The pitcher method is one of the most effective ways to manage your personal or family budget. All you have to do is spread the money you plan to spend across six jugs. Each pitcher is responsible for one area of life. This way, you will not spend more than you planned.
Pitcher 1: Essentials (55% of your budget)
The money in this vessel is for daily expenses and bills. They will also cover your rent, transportation, taxes, and food costs.
Pitcher 2: Entertainment (10% of your budget)
This part of your budget can be spent on purchases that you usually don't. For example, you can purchase a bottle of expensive wine or go out for the weekend. Dispose of this money as your heart desires.
Pitcher 3: Savings (10% of your budget)
This is the guarantee of your future financial independence. The money in this bank will be used to invest and create passive sources of income. You should not spend these savings until you are completely financially free. And even in this case, it is worth spending only the money that you received from these savings, but not the savings themselves.
Pitcher 4: Education (10% of your budget)
The money in this vessel is intended for your further education and personal growth. Investing is a great way to invest money, and you are your most valuable asset. Don't ever forget this. Spend this money on buying books, CDs, or courses. All this will pay off later.
Pitcher 5: Personal Stocks (10% of your budget)
You can use these savings for large purchases. Use them to buy a plasma TV, pay for a subscription or a car. This is your so-called reserve fund, which needs to be constantly replenished.
Pitcher 6: charity and gifts
(5% of your budget)
Use this money for gifts for birthdays, weddings and other holidays. You can also donate them to cancer relief, an animal shelter, or simply helping the poor.