STEP 2 - Mason Jars

Now that we have identified our passions and what makes us truly happy, we need an organized way to save and invest so we can live them out and cover all our other expenses.

Criteria for a Mason Jar:

• It has to have a specific passion or goal tied into a financial objective.
• The financial objective needs to be tied into an investment strategy unique to that mason jar.
• Address the most important mason jars first (take care of yourself before trying help others).
• Jars are funded with current assets and future savings.

Here are some examples of mason jars for a younger investor:

Retirement Account Funding - Determine how much to put into retirement accounts (IRA, 401(k), Roth, etc.) for age 59.5+

College Savings - If you have kids or will have kids how much should we save for their college

House - Purchasing a primary residence or rental property

Business - If you own a business and need capital purchases or if you are looking to start a business down the road

Pay Off Debt - Instead of paying off debt or a mortgage you may want to fund an account to pay it off at a future date

Mini Retirement - Funding travel & experiences now instead of waiting to do everything down the road

Some examples of mason jars for investors approaching or living in the later stages of life:

Income Replacement - Determine how much income is needed to be pulled from investment accounts to cover spending

Safety Net - Fund up to three years of your annual budget

Long-Term Care - Self funding potential long-term care needs

Family - Fund needs for other family members (grandchildren, children, etc.)

Charity - Plan for ongoing donations and/or future contributions

Extra Vacations/Spending - Fund extra trips, experiences or other expenses above and beyond core budget