Save Big With a Savings Jar

canstockphoto26074840Can a savings jar easily get you in the path of saving a lot of money? Those coins that you find under your sofa can grow significantly over time. The purpose of having a savings jar is for you to stay motivated and stick with your savings plan.

Keeping a savings jar will can help you to set short-term and long-term goals. This is an easy way to put money aside for a family vacation, home renovation projects, or to build your savings.

Here are some methods you can use to reach your financial goals:

 

1. The $5 bill savings plan. This strategy involves saving a $5 bill by placing the money in the jar each time you receive it as change from your purchases. This savings plan can easily be modified to a $10 or $20 bill.

Instead of spending your $5 bill, you should save it and allow it to slowly build up the contents of the savings jar.

If you’re unable to save even a dollar right now, you can always start out by saving your loose change.

 

2. The 52-Week Money Challenge. This method is quite popular among people that are looking for ways to reach their financial goals. This will gradually increase your savings each week of the year. Here’s how to do it:

Get started by putting $1 in your jar the first week of the month. Then add $2 the second week, $3 the third week and so on. Once you add $52 the last week of the year you’ll save $1,378 by using this simple strategy.

Keeping a print or an online calender can help you stay on track of your savings plan. Each week can be labeled at the beginning with the amount of money that you need to add in your savings jar.

 

It may be easy for you to save $1 or $2 at the beginning of the plan, but can be a challenge to save $52 at the end of the year. This savings method will encourage you to think ahead and find ways to save money.

 

3. The traditional change method. Saving your pocket change by automatically placing it in the jar is the most popular strategy among savers. This may seem like it won’t make much of a difference, but this can actually create big results!

Simply add all of your loose change in the savings jar every time you make a purchase.

 

4. The Payday Savings Plan. Consider adding a specific amount of money to your savings jar after cashing your paycheck.

The payday savings plan will also work for couples. You can add a certain amount of money along with your partner each pay period and add it to the savings jar. This always works best if you have a financial goal set in place.

Whether you are trying to save up for a family vacation or a new electronic gadget, figure out how much money you will need to save each month from your paycheck and remember to always pay cash instead of accumulating credit card debt.

 

5. The Inspirational Savings Plan. It works best if you keep a photograph of the item or a specific goal that want to achieve. It can be placed somewhere near the savings jar on the lid so you’ll see it every day. Place the savings jar in the living room or the kitchen counter so it is visible. Including the entire family will produce the best results.

You can add the inspiration photo of a new Smart TV or a romantic cruise to a frame. Simply writing the goal down on a sheet of paper can also be helpful.

 

The photo will serve as a constant reminder of why it’s important for you to stick with your savings plan.

 

6. Start a $20 Weekly Savings Plan. The $20 weekly plan is an excellent alternative to the 52 Week money plan. You can place a $20 bill in the savings jar instead of slowly building your savings throughout the year.

 

Alike the 52 Week Money Challenge, you can track your savings on a calender or chart. This will allow you to save $1,040 at the end of the year.

 

A savings jar is a great way to help you to help you reach your financial goals. Make a commitment today and watch your money grow!

canstockphoto9157930According to the 2014 Financial Literacy Survey, conducted by the Harris Poll, 61% of Americans don’t use a budget. If you’re in this category, you will be glad to discover that creating a budget is a lot easier than you think. It’s also a good way to take more control over your finances.

Creating a budget has many benefits. You can make solid plans to achieve your financial goals and live the best life that you deserve by adopting a budget. A good budget is easy to follow, create sound financial habits and it will also leave a bit of room to have fun instead of feeling deprived of the things you enjoy.

 

Follow these simple steps to begin your journey of creating a budget that best works for you:

 

1. Identify your source of income. You’ll need to know the amount of your total income before you make a decision on how to save and spend your money. Get started by creating a list of all of your income and calculate the total amount. Also include how frequently you’re paid off.

The most common sources of income include the paycheck from your regular job and monthly alimony payments. If you’re making additional income such as a yard sale or a side hustle such as dog walking, make sure this information is also included.

 

2. List and categorize all of the expenses. When you’re creating your budget, make sure to carefully categorize all of your expenses. Consider what portion of your income you’re going to use for various types of expenses.

Many budgeting templates classify expenses in two categories: fixed and variable. Fixed expenses are those that regularly occur for a set amount. Insurance premiums, monthly rent/mortgage costs and car payments are examples of different types of fixed payments. Variable expenses take place at different times or for irregular amounts of money. It is really important for you to estimate the amount and timing of your variable expenses.

If you’re having difficulty setting aside a portion of your money for emergency savings or  achieving other financial goals, categorizing your expenses in terms of wants and needs can be very helpful.

A great way to save more of your money is to consider whether each expense is a true want or need. For instance, do you really need to have cable services, a cell phone or perhaps a pedicure? After you  make a decision on things that you can do without, reduce spending on the items that are only “wants.” This is a bit tougher than it sounds. For example, most of us know that food is a necessity in our everyday lives, but the type of food that we choose to purchase may reflect a want compared to an actual need.

 

3. Leave room in your budget to enjoy a lot of freedom. Staying on top of your budget will help you achieve a balance between your spending and saving habits. It also allows you to do things that you enjoy while taking better control of your finances.

 

4. Boost your income. Just as you are tracking your expenses and setting short and long-term financial goals, look for ways to make some extra money.

 

Getting a second job, using your skills to start a home-based business or selling items around the house that you’re no longer using are excellent ways to increase your income.

 

 5. Use budgeting tools. Writing out a budget can be a tedious or boring task. Using budgeting software programs can make it easier for you to automatically record and track all of your financial transactions.

 

6. Keep a close watch your budget. It’s common to experience changes in your finances over time. For this reason, it’s really important for you to review and adjust your budget on a regular basis.

Whenever you create a budget, keep in mind that the price of food, gas and household bills are constantly fluctuating and there may be changes in your financial goals such as buying a new home or car.
Creating a budget is very important to stay on top of your finances. Use these tips to build a realistic budget that will help you to reach your financial goals while enjoying your the things you love to do guilt free.