The single biggest difference between financial success and financial failure is how well you manage your money.  It’s simple: to master money, you must manage money”. T. Harv Eker2

In daily life, individuals often encounter an array of financial decisions encompassing savings, investments, and borrowing needed to be taken. This conveys the critical need to improve financial literacy, particularly among Nepal’s ambitious and young people, to enable them to make wise and effective financial decisions. Within Nepal’s ever-changing financial landscape, the younger generation frequently faces a variety of issues, including rising inflation, rising living expenditures, and a notable lack of financial budgeting. As a result, it is essential for Nepalese youth to exert control over their financial obligations.

The “5 Jars System” emerges as a meticulously developed and realistic approach to financial planning, showing significant potential in this pursuit of financial freedom. This strategy not only provides young individuals with the necessary skills for navigating complex financial problems, but it also plots a road toward the achievement of their goals and the assurance of a more secure financial future. The article explores the transforming impacts of the “5 Jars System” on Nepal’s growing generation, emphasizing how it works as a catalyst for achieving financial security and independence in the face of our world’s current difficulties.

The “5 Jars System” is a systematic financial technique that divides one’s income into five distinct categories, each with its own set of financial goals. It offers a clear and organized framework for allocating and managing finances ensuring that money is allocated efficiently for necessities, long-term savings, spending on pleasures, investments, and Self-development.  This methodical strategy allows individuals to manage their finances proactively, prioritize their goals, and confidently traverse the complicated environment of finances.

Today, every youth has a dream of owning a home, buying a new vehicle, paying off debts, going on a world tour, or starting a dream business. However, without proper financial planning, these dreams remain a dream for many of us. The multitude of benefits of the “5 Jars System” will act as a shield against any financial problems faced or any emergency with the help of funds allocated for future needs. This method will play a vital role in people (especially middle and low-income) in achieving the small to big goals and dreams they imagined. 

Currently, for most people from Europe to Asia, this method has helped them to overcome their poor financial planning and effectively take steps towards their goals. Many students have been able to pay off their school debts to people owning their homes or sensibly handling the emergency in terms of finance. These tales show the potential of structured financial planning and give us strong support to the commitments for the youths residing in Kathmandu studying, and working to successfully manage the financial crisis they face.

A lot of people say, ”I would love to have this money management habit, but I cannot do it!  I don’t have enough money coming in to split it“, or statements like ” My expenses are too high, there is no way I can afford to split my money into different accounts“.

Harv would get infuriated!  I usually say to these people: “Shut it!“.  You tried your system for years.  Did it work?  If you are broke, then it did not work!

So, you have to switch your old money management software to a better one

While implementing the “5 Jar System” in our life might seem daunting initially, it is important for us to acknowledge possible challenges such as early resistance to change or difficulties defining realistic financial objectives. To solve these difficulties, we should start with small steps and gradually increase while seeking help from financial experts as this has been a crucial aspect of our life. 

In conclusion,  the “5 Jars System” is a revolutionary method for Nepalese youth, providing a systematic road to financial stability and independence. It is now time for Nepalese youth to embrace this method.


By- Risham Sah (Executive Intern, Finlit Nepal)

Leave a Reply