Jars of 6 for Millionaire Mind - cont

Every income that we are getting, we have to segregate to all these jars. There are rules to saved in it. I want to make it clear here. So, no one gonna feel this method burden them. This is the rules to follow.

• NEC - Necessities - 55%
  
• PLAY - Play - 10%
  
• LTSS - Long Term Saving Spending - 10%
  
• EDU - Education - 10%
  
• FFA - Financial Freedom Account - 10%
  
• GIVE - Give - 5%
  

NEC - The highest percentage of all that includes your utility bills, hire-purchase loan, housing loan and foods. This is the commitment, compulsory commitment. Reducing the utility usage can save a lot. 55%

PLAY - The money that can spend to ease your stress you earned. 10%

LTSS - The money you saved here could be your Hajj saving, dream home deposit, retirement rich plan and traveling around the world. For the card credit users, you can use this jars up to 50% to pay your card debts. 10%

EDU - For those who plan to continue their studies too a higher level this is the jars they need. For others, this jars is still relevan because you can use it to attend the course or seminar for your mind dietry. 10%

FFA - The key of passive income is in this jars. No matter what happen, don't withdraw from this jar. This jar is strictly for deposit only such as takaful. It will be use when you're at golden age. 10%

GIVE - What you gives, you get back - Scorpion. In this jars, i suggest the usage is for zakat, humanity and charity. Zakat or "alms for the poor" or tithe it is an obligation on Muslims to pay 1/40 (2.5%) of the wealth which they have had for a full lunar year,1/40 (2.5%) of goods used for trade, and 5% or 10% of certain type of harvests depending on irrigation. Exempt from Zakat are a person's house and personal transportation. Zakat is not mandatory on harvest if the total did not reach the minimum limit of about 653 kilograms, nor on gold amounts if the owner has less than 85 grams of gold or less than 595 grams of silver. 5%

You may wonder, why there is no emergency jar in this method. Please be informed with these method you'll not need the emergency jars anymore. You just form 3 jars for the investment (EDU, FFA, GIVE) and 3 jars for the daily usage (NEC, PLAY, LTSS). I hope for those parents please educate your children with this kind of saving money. Make it a habit, a habit with a good return.

Last and not lease, don't just leave your saving in the jars. Please save it in according places, you know what I mean ;P

Jars of 6 for Millionaire Mind

The most simple money management and very systematic is called 6 Jars Millionaire Mind, by T harv Eker. Last year in May 2008 he's conducting Millionaire Mind Intensive Seminar.

More than ever before, having the right mindset and tools is key to financial success. While the markets continue to be volatile, many people are rubbing their hands together with anticipation and excitement at the opportunities available to them.

If you're prepared for difficult economic times, and have the right tools, there is no reason to worry about your financial future. You can create your own micro-economy, and a thriving economy.

So, to execute his famous technique you have to prepared

• 6 transparent jars
• 6 labels
  • NEC - Necessities
  • PLAY - Play
  • LTSS - Long Term Saving Spending
  • EDU - Education
  • FFA - Financial Freedom Account
  • GIVE - Give

Why transparent jar? Must I label it?
We use transparent jar with label because we could see through how much money we just saved in every jars to mind set our weak mind to do a proper money management.

There is a rules to saved in it. Check out my blog next week for the rules to saved with this method.

Oil Trades With A Soft Tone, Decouples With Stocks' Rally

European morning shows that oil price continues to trade with a soft tone below $45/bbl as investors were disappointed by the OPEC's decision given further deterioration in oil demand. However, many analysts were happy as rise in oil price will have negative impact on economy recovery.

According to Francisco Blanch, commodity analyst at Merrill Lynch, OPEC should focus on strict adherence to production quota before announced further reduction. Moreover, spike in oil price is not good for global economy.

OPEC's decision did not change our view that oil price has been stabilizing. Both WTI and Brent crude forwards have shown strengthening in timespreads, indicating OPEC's previous cuts have tightened oil market. Oil price has traded with great volatility since 2H08 and dived by more than 70%. However, the collapse appeared to have ended at 32/33 in Jan 09 and price has been staying roughly above 40 over the past few weeks.

If OPEC could achieve 100% compliance, 0.8M bpd more will be removed from the market. This, together with non-OPEC's decline in production should tighten market further. In February, oil production in Russia dropped 70K bpd yoy to 9.72M bpd.

The stock market rallied today as G-20 committed to revive economic growth as clean up the toxic assets in the financial system. In Asia, the MSCI Asia Pacific Index gained 2%, Japan's Nikkei 225 Stock Average added 1.8% and Hong Kong's Hang Seng Index climbed 3.6% as driven by gains in financial stocks and automakers. Airline shares also soared as OPEC refrained from cutting outputs.

In Europe, UK's FTSE 100 climbed for a 3rd day as Barclays said it has a strong start in 2009. The lender rose 14% in the morning. Germany's DAX Index rose 2% as led by Deutsche Bank;s 5% rally.

Gold price edges lower as the equity markets gain. Currently trading at 923.8, we expect buying interest for the precious metal will resume soon after consolidation as investors eventually realize there's no such 'risk-free' safe-haven as gold. In the past, investors tended to park their money in Swiss Franc during times of economic uncertainty. After the SNB's announcement of intervention last week, funds have been driven from Swiss Franc to other places.

The Bank of Japan will meet tomorrow and the market expects it will increase purchase of long-term government securities. Moreover, the FED policy makers will start a 2-day meeting tomorrow to discuss the economy. Economists anticipate more details to be released for the purchase of long term Treasury securities. The FED's policy has been inflationary as it reduced its target rate for overnight loans to 0-0.2% and more than doubled its balance sheet. We believe these actions would lead to weaker dollar and this would help gold's rally.