Money Jar Savings Method

Hey everyone! Hope you guys had a great week and that you are ready for an awesome weekend. Today’s topic is all about money. Ok so tell me if this sounds like you, payday comes along and you budget out all your needs and wants. All is going well, you are able to put a little into savings maybe, BUT, there is something that you either want or will need coming up on the horizon that you aren’t sure how to save for. It could be an upcoming trip, a large bill, a wardrobe revamp, you get it. You want to do whatever this thing is but you just can’t figure out how to make sure you have it all in time. Well never fear, I’m here to help. For situations like this, my favorite method has got to be the jar method. Curious? Just keep reading, I’ll explain.

  1. Pick your goal

An easy first step I would say, you probably already had something in mind before you finished the first paragraph. My suggestion is to start kind of small. Don’t go too big too fast until you get the hang of things you know? So for our little example today we are going to say that we want to save up for a dear friend’s birthday present. Now, something to keep in mind with the amount you want to save is that you need to be realistic. Look up the prices and if you can, save a little more than that. So the present we want to get our friend is a pair of concert tickets. You look it up and they are going to be $100 for both. So let’s save $130 so we have tax covered and we have a few dollars left over.

  1. Pick your Timeline

Ok, so when do you want the money by? This is going to have a lot to do with what it is you have chosen to save for. For the sake of our example, we’ll say our friend’s birthday is two and a half months away. Now our more important piece of info is how many paychecks are between now and then? What I want you to do is pull out a calendar, whether physical or on your phone and count them all up. For us, there are 10 paydays between now and our friend’s birthday. So we take our total ($130) divide by our 10 paydays. We get $13.

  1. Get a Jar and get started

When I say get a jar, it doesn’t have to be a real jar if that’s not what you want. Your jar can also be a separate savings account or really anything. As long as you can keep everything straight then it’s all good. For me, I use an actual jar because that’s what works best for me. You can decorate it if you like or keep it plain. The real thing to focus on is taking out that $13 every week or two weeks (however you get paid) and put it away in that “jar”. If you stick to it and leave the money in that jar alone, you will have the money you need in time for whatever it is. I have used this method countless times and although it is simple, it is effective.

I hope you enjoyed and that this helps you in getting to your money goals. Let me know if there are any other topics you would like me to cover on either money or something else.

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