**Let’s be honest — one of the toughest challenges regarding finances is figuring out how to manage it effectively.**
In the video above, I will reveal the precise techniques I, along with thousands of my students, employed to gain control over their finances and achieve financial independence. If you’re interested in learning more, keep reading.
## Your Financial Accomplishment Is Primarily Dependent On How You Handle Your Finances
The most crucial factor distinguishing financial success from financial failure is your money management skills. Mastering how to manage money empowers you to attain financial freedom — and with that freedom comes the opportunity to spend your time as you wish, rather than being compelled to work merely to make ends meet.
Most people aspire to reach [financial freedom](https://www.harveker.com/blog/biggest-financial-misconception) — that point where we no longer stress about bill payments or rent, where all our fundamental needs are met. However, financial freedom is only achievable when there’s sufficient money available to allocate toward our wishes, whether that entails eliminating debt, leisure activities, or an extensive vacation. Ultimately, that’s the goal we are all pursuing.
Everyone I’ve spoken to desires to attain financial freedom. I’ve yet to encounter anyone who doesn’t aspire to that. But achieving financial freedom is unattainable without mastering [effective money management](https://www.harveker.com/blog/6-step-money-managing-system) through essential strategies that lead you toward financial independence and long-lasting wealth.
**To genuinely manage our finances well, continue reading to uncover several crucial principles to remember…**
## 1. If You Can Handle A Small Amount Of Money, You Can Handle A Large Amount
Wherever I find myself globally, when discussing finances, the same question always arises: “Harv, I don’t possess much money, in fact, I don’t have any surplus, so how can I manage it?”
To address this inquiry, I provide a very straightforward analogy:
Envision that you have a set sum of money and you visit the grocery store once a week. Suppose you spend $200 at the grocery store to purchase your weekly groceries. Upon returning home at noon, you decide to have lunch. Will you consume all of the food? Obviously, you won’t eat all the food in one go — it’s meant to last the entire week! Instead, you will manage it so it *sustains* you throughout the week. Yes or yes?
The same concept applies to your finances:
**You must manage your money wisely to ensure it lasts.**
Here’s the reality: irrespective of your income, you must manage it. And here’s why:
### We are creatures of habit.
So if you haven’t developed the habit of managing your finances, when you start receiving MORE income, guess what will happen? You still won’t manage your money. It will all vanish, and you’ll find yourself wondering why financial success eludes you — let alone becoming wealthy!
Therefore, even if you earn $1, you need to learn how to manage that dollar. And if you can accomplish that, you will reinforce the habit of managing money.
During my *Millionaire Mind Intensive* course, and in my book, “[Secrets of the Millionaire Mind](https://www.amazon.com/Secrets-Millionaire-Mind-Mastering-Wealth/dp/0060763280),” I introduce a very effective money management strategy— specifically intended to guide you to financial freedom.
It’s called the [JARS money management system](https://www.harveker.com/blog/6-step-money-managing-system/).
Essentially, with this system, you divide your money into **six distinct accounts**, allocating percentages of your income to each account. You can use bank accounts or physical jars and distribute any income you receive into the jars (or accounts) [following these percentages as a reference.](https://www.harveker.com/blog/6-step-money-managing-system/)
### [Here’s a FREE worksheet that will assist you in calculating how much of your income to allocate to the 6 jars.](https://harvekeronline.com/6-jars-exercise/?utm_campaign=limitingbeliefs_lm_content&utm_medium=post&utm_source=blog&utm_content=blog-money-management&utm_term=cta)
#### In summary:
### As you strive towards financial independence, mastering money management habits is imperative.
Money management serves as the foundational pillar of financial success, whether you’re commencing your journey or are already a millionaire, because