How to save and budget with a money jar system
There are different methods for saving money with a jar, but they all share one common feature. The money jar.
This guide will walk you through a variety of various saving challenges that all require you to put a certain amount of money into one or more jars. All of the strategies in this article will help you to build a stronger connection with your dollars. As well as drive you to be more responsible with your spending and saving habits. Therefore, keep reading!
A simple glass jar can help you save hundreds of dollars over the course of a year. A money jar serves as a reminder to stick to a budget. It’s a simple method to save money for a vacation or home improvement project.
Any type of glass jar would serve. However, it is important to keep the jar transparent, as seeing the money rise will motivate you to continue. You have to understand that managing your money does not limit your freedom, instead, it enhances your financial freedom. Meanwhile, I’m quite sure this is definitely not your first time to hear this. Therefore, if you really want to gain extra financial abundance, you need to start managing your money well.
However, you can keep your money savings jar right in front of you to serve as a daily reminder of your goals. Moreover, they’re far more convenient to use than making currency or dollar deposits at the bank on regular basis.
One thing beautiful about a money jar, once you start managing your money. After the first year, even without any significant change in your income and all your expenditure remain equal, your net worth will increase by an astonishing 45% or more. Meanwhile, after you have understood the use of this strategy, you will discover that it’s quite simple and didn’t require a lot of your time. Compared going to the bank always to make a deposit and save to achieve each of your goals. You can buy few jars online, even on amazon.
Ways to Save Money With a Money Jar
Spend some time to learn about each of these challenges below, and choose which one attracts you the most. While you may be tempted to take in several jar challenges at a time to speed up your savings. However, it’s better to start with one first and stick to it. Then, if it’s going well, you can now consider adding more challenges later. Below, are the money jar savings challenges you should know and apply.
First, Start By Choosing Your Goal For Saving
Setting a clear savings goal is simply what a money-saving jar is for. Create or have a target figure in mind and then personalize your step-by-step challenge to accomplish this goal. However, you may wish to conduct some study into the cost of the thing you’re saving for, or choose a figure that will provide financial security in the event of an emergency.
The 52-week Money Challenge
This strategy gradually increases your savings each week until you reach your goal for the year. However, start by putting one dollar in your money jar during the first week of the new year. Then, each week, add an additional dollar. Savings continue to climb until they reach $52 in the final week of the year. When you try this simple method, it will save for you $1,378.
A printed or online calendar can be used to keep track of your finances. Each week can be labeled with the amount that has to be added to the savings jar at the beginning.
While it may be simple to save a dollar or $2 at the start of the plan. But, how will you come up with an additional $52 at the end of the year? This method of saving will help you to think and plan ahead of time. However, it will also motivate you to continue saving. And, by the time saving seems challenging, you will have saved a large sum of money in your money jar, which will encourage you to commit more.
The $5 Bill Plan
This step includes saving a $5 bill each time you receive one as change by putting it in your money jar. The idea may be changed to be a $10 bill, $20 bill, or even a quarter banknote, depending on your choice. Meanwhile, rather than squandering the $5 cash, you can save it and gradually fill your money jar.
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The Traditional Change Challenge
This is a very old or traditional method that requires you to immediately put any change you receive into your jar. Simply store your money-saving container in an easily accessible spot, such as your kitchen or hallway. So, when you return home and empty your wallet of coins, ensure you put the change in your money jar. However, the disadvantage is that you will be without change the next time you go out. But, you will less likely to waste money also if you need to visit an ATM to withdraw additional cash to spend on unnecessary things.
The Payday or Paycheque Plan
How regular are you paid? And how long does it take for your bank account to return to zero before payday?
The payday challenge is all about setting away a part of your earnings and depositing it directly into your jar, where it cannot be spent. Meanwhile, this will require you to have created a budget, which is usually a good idea when it comes to savings jar ideas.
Calculate how much money you require for necessities such as bills, groceries, and rent. Following that, determine how much money you desire to spend on non-essentials such as entertainment. Then, the remainder can go directly into your money savings jar each payday.
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However, this type of plan work also for couples. Each month, you can cash a specified amount of money from each of your paycheques and put it in the jar. Meanwhile, this method of money-saving in jars is most effective if you have a financial goal in mind. Are you saving for a vacation or a new electrical device? Calculate how much money you will need to save each month from your income to cover the cost.
In addition, always have this in mind, once you put any cash in the jar, it must remain in the jar. This will really help you in your savings using the money jar system.
The Inspiration Or Motivation Challenge
Do you have a clear picture of what you’re saving for? Is it a vacation, a car, or a marriage ring that you’re after? Whatever your goal is, it is really helpful to conduct an extensive study on the item. As well as print out a vivid photo or picture of it. The larger the better, so you won’t be able to ignore it.
Meanwhile, attach your photo to your money-saving jar and place it in a visible place in your home. Perhaps, each time you are inspired or motivated by the picture, you can add to your jar. However, to maximize your impact, print out many photos of the item you are saving for, to ensure that you never forget your goal.
Place the photos all around, starting from your bathroom mirror to your car. When you do this, you will be motivated to keep to your savings goal throughout the day. Furthermore, this is an excellent savings method to use in combination with another method. Such as the 52-week goal plan. Meanwhile, if it’s a family goal, get everyone in the family involved. You’ll have a joint feeling of accomplishment when you reach your goal as a family.
The $20 a Week Plan
Simple math indicates that $20 every week will earn you $1,040 over the period of a year. Is it enough to enable you in achieving your goal? Otherwise, the challenge might be increased to $30, $40, or even $50 a week. Or scaled down to $10 if your goal is more modest. The beautiful thing about money-saving jar ideas is that they’re really adaptable; it’s simply a matter of choosing the right numbers for your specific goals.
Maintaining the regular version of the plan at $20 each week, the idea is that you simply commit to setting this aside and depositing it in your jar. This may be pretty simple in the first week following payment, but if you anticipate that the second week will be more difficult, plan accordingly.
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However, you may need to commit to some frugal living strategies to help you remain on track, such as switching energy providers to save money on your bills or meal planning to save money on groceries. Moreover, there are many money-saving methods that you can apply, even if you’re on a shoestring budget.
Scaling Up Your Save Money Jar Challenge
The beautiful thing about using a jar to save money is that it can be started as early as childhood with a piggy bank to build good saving habits. As you grow up, the same principles apply when you use adult money savings jars instead.
The main strategy of learning how to save money and modifying your budget to match those goals may also be applied to digital savings. After completing your jar challenge successfully, why not try the same strategy with your digital banking apps as well? You may automate the process using standing orders, raising the chance to commit and earning interest on your banked savings.
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Staying SMART System
Using a money jar is an excellent strategy for financial success, but only if you have a financial goal in mind. To assist you in setting a goal, utilize the SMART technique, which stands for:
Specific (know precisely what you’re aiming for)
Measurable (how much money do you need to save?)
Achievable (Is this a reasonable goal for savings?)
Relevant (Is your goal pertinent to your circumstances?)
Time-bound (how long will it take you to accomplish your goal?)
Now that you understand the fundamentals of money saving in a jar, it’s time to get started. Decide what you want to do, calculate how much money you need to save, create a strategy, and select a jar. That is all.
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If you have recently tried to manage your money but failed, what do you have to lose by giving the money jar system a try? This will enable you in setting a real value and enabling you to live the life you have always desired. You can check out other of our blog savings strategies to help you more.