The Mason Jar Money Method: How A Jar Can Help You Save

The physical power of real money can be incredibly motivating. Holding bills in your hand just makes you want to keep them. For some, trying out a cash-only budgeting system can help break habits that they’ve fallen into with credit cards. For others, paying for small purchases with cash instead of a card can be a way to discourage minor spending throughout the day. In this article, we’ll walk you through one of the many budgeting hacks that takes advantage of the charisma of cash: the mason jar money method.

Setting up automated transfers into a savings account or using apps like Acorn can be incredibly effective. Still, automated transfers can be emptied out; if you don’t feel motivated to save, no amount of convenience can keep you pinching those pennies.

With the mason jar money method, you’ll set a savings goal, make a deposit plan and commit to adding a predetermined amount of cash to a mason jar each month. You can use that money to jump-start debt repayment or an emergency fund, or to cover a luxury purchase.

Step 1: Acquire Your Mason Jar

One of the most important traps to avoid is shelling out for materials that will help you save, failing to follow through on the project, and as a result, ending up spending money instead of saving it.

We recommend that you spend no more than $7 in your preparations before diving into the mason jar money method. Ideally, you’ll be able to reuse a pickle or tomato sauce jar that you already have.

You’ll want to make sure you have a large jar that will keep your money safe. Make sure you will not need it for anything else. You’ll also want to make sure that your quest for the perfect jar doesn’t derail your plans and prevent you from getting started.

Prioritize getting started quickly, but don’t pick anything that won’t be fully functional. Don’t use the only vase you own, or that big bowl you use for your signature pasta salad.

Key Takeaways:

• Don’t spend more than $7 on your jar.
• Don’t put off getting started while looking for the perfect jar.
• Don’t use an inadequate substitute, like a bowl you’ll need for something else.

Step 2: Set Your Goal

Ideally, your financial goal will fall in the range of $1,500 – $6,000. These amounts can actually fit in one or two jars, and most people can save them in a manageable amount of time with determination and discipline. The mason jar money method can be used for serious financial goals, such as setting up an emergency fund or paying off a single, mid-sized loan in full to start your debt repayment snowball rolling. However, it’s also great for allowing you to have fun with your money. Maybe you want to save up for a vacation. Or how about a luxury purchase, like a top-of-the-line gaming PC, a deluxe turntable or a Peloton bike? You could also consider saving for an expensive hobby that might end up paying off down the line as a side gig, like photography or sewing.

Keep in mind that saving in order to splurge can be a financially responsible choice. Pinching pennies and then spending a predetermined, carefully budgeted amount on something that will bring you joy and add value to your life can be part of a financially savvy lifestyle. What you definitely want to avoid is letting your money trickle away through small purchases that don’t get you much benefit.

Be as exact as possible in figuring out how much you need to save to meet your goal, so that when you fill your jar(s), you’ll have enough to cover the purchase. If you’re saving for an emergency fund, take advantage of the ample guidance available for calculating the amount you’ll need. If you’re planning a vacation, you might want to consider asking a friend for their opinion on whether your numbers seem realistic. If you’re planning a luxury purchase, research your options in advance.

Key Takeaways:

• Set a goal in advance, and research the cost.
• Saving carefully for a big luxury purchase can be financially responsible.

Step 3: Make A Plan For Filling Your Money Mason Jar

One popular strategy for filling your jar is to increase the amount of money you put in by a dollar each week. If that sounds like it will cause your saving process to be too slow, or that it will end up ramping up to too high of a weekly payment near the end of your project, there are alternatives. You could set a fixed amount to deposit and stick to it. For example, $25 or $50. Or, you could decide to double what you put in each week, but reset every month or every 2 months. For example, $1 in week 1, $2 in week 2, $4 in week 3, $8 in week 4, $16 in week 5, $32 in week 6 and so on.

If your purchase is on the higher end of the price range, you may find that a steady flow of midsized payments makes the most sense. Be sure, though, to take a careful look at your personal budget and remain realistic regarding what you can afford to take out of your paycheck each month.

You can tentatively choose a method, calculate how long that method will take and then modify your plan if it will take too long to reach your goal or won’t fit your budget.

For example, increasing your payments by a dollar each week will result in $1,300 saved in a year, while with the doubling method suggested above (assuming a reset every 2 months), you’ll save $3,315 in a year. For a $5,000 goal, the second option might make much more sense, but $128 in a week might simply be too much for many.

There are also some practicalities to consider when it comes to acquiring the physical cash to put in your jar. If you aren’t getting paid in cash, and you don’t want to head to a brick-and-mortar bank on a weekly basis in order to withdraw money, you should probably choose amounts that can be easily withdrawn from most ATMS (for example, $20, $50, $100). Note that there is often a transaction fee for ATM withdrawals.

If you’re going to use an ATM for this project, you’ll want to find a good bank that will let you avoid these fees. If you do get paid in cash, but tend not to receive certain bills – for example, $1 bills – you’ll also want to factor that into your plan. Putting an amount like $64 into the jar might be a major inconvenience. 

Key Takeaways:

• Play with the math for a few different deposit plans before deciding on one.
• Choose how much you will deposit each week based on both your budget and your goal.
• Be aware of ATM transaction fees and find a bank that waives them.

Take into account your access to cash and to certain bill denominations when making your plan.

Step 4: Execute Your Plan

Always keep your goal (and your jar) in sight. For many deposit plans, some weeks will be lighter than others when it comes to what you put in your jar. If you’ve chosen one of those plans, it’s a good idea to save toward the heavier weeks in advance.

Even a large jar may become full. At this point, you can either deposit what you’ve saved or start a second jar. It depends what you’ll find more motivating, and whether you’ll be too tempted to spend the money you deposit. If you do decide to keep your full jar and wait to deposit it, be sure you’re keeping it in a safe place.

Key Takeaways:

• You can save up for big deposit weeks during smaller deposit weeks.
• Be careful with your jar, as it will likely contain a lot of money!

The Bottom Line

A money mason jar can be a great way to shake things up and motivate yourself to save a considerable sum. It’s not as much of a no-brainer as an automatic deposit, but a small amount of effort can be worth. If you do decide to try the mason jar money method, keep your eye on the prize and your mind focused on savings strategies and you’ll meet your goal before you know it!