Jam jar saving for January and other simple ways to save
January is often the month where good intentions meet depleted bank balances. December is often a big spending month, and everyday expenses and bills can make saving feel overwhelming.
Fret not. These January money saving tips are designed to help, whether you want to get back on track with your savings, or are starting from scratch.
The best January money saving tips are usually the simplest: the kind which are easy to weave into everyday life, without complex budgeting, extreme cutbacks or time-consuming money management.
Why is January a good time to start saving money?
Psychologically, a new year can feel like a natural financial reset. It’s a fresh start and a chance to build better habits.
Starting early gives your money time to work for you. Taking action, like opening an easy access savings account, can motivate you to keep going throughout the year.
- Bills and outgoings are front of mind
- Motivation is typically high
- Small habits formed now can last all year
- Even modest savings can grow quickly with consistency
What is jam jar saving and how does it work?
Jam jar saving is a simple way to organise your savings by goal, rather than keeping everything in one account.
Imagine physical jam jars, each labelled with a different purpose:
- Christmas savings
- Holiday fund
- Wedding pot
- House deposit
Instead of cash jars at home, modern savers use separate savings accounts or savings pots, often through online banking.
The jam jar method is especially useful if:
- You’re new to saving
- You struggle to stick to strict budgets
- You find ‘one big savings pot’ unmotivating
Jam jar saving removes a lot of the guesswork and gives a clear, motivated reason for what you’re saving for. It’s flexible, easy to manage and doesn’t require a perfect budget to begin, just a goal in mind and a decision to start.
How to set up jam jar savings:
- Decide what you’re saving for (your “jars”)
- Choose an account to use for each goal
- Set up monthly standing orders
- Review and adjust when needed
Choosing your jam jars:
You can set up different savings accounts and standing orders for each jam jar savings goal. Many people find it easiest to have the set amount automatically transferred out of their current account on the same day each month.
Easy access savings accounts are a simple way to do this, as they allow flexible deposits and withdrawals, so you control how much goes in and when you take it out.
Easy access savings accounts work particularly well for jam jar saving because:
- You can add money whenever you like
- Withdrawals are quick and flexible
- There’s no long-term commitment.
Another bonus of this method is it can give a clearer view of your spending pattern, making it easier to make more intentional financial choices.
Other easy ways to start saving each month
The beauty of saving is that you can let it work around your lifestyle. Saving doesn’t need to be rigid, time-consuming or involve large amounts. The real key is consistency.
Saving any amount regularly, however small, will not only get you into good financial habits, but also give future you a little helping hand when you need it.
The 50/30/20 budgeting rule
The 50/30/20 rule or budget divides your monthly income after tax into three simple categories.
50%
How the 50/30/20 rule works:
| Data | Percentage % |
|---|
Example monthly budgets:
| Income (after tax) | Needs (50%) | Wants (30%) | Savings (20%) |
| £1,000 | £500 | £300 | £200 |
| £2,000 | £1,000 | £600 | £400 |
| £3,000 | £1,500 | £900 | £600 |
| £5,000 | £2,500 | £1,500 | £1000 |
This method is popular because it is:
- Simple and balanced
- Suitable for any income level
- Easy to manage with just three categories.
The savings portion can be split across jam jar savings pots held in easy access savings accounts.
The £1 challenge
What is the £1 savings challenge and how can I start?
- Simply save £1 each day
- Total saved after one year will be £365
This challenge works well if:
- You’re new to saving
- You want to build a saving habit
- You prefer low-pressure goals
The ‘no spend’ challenge
The no spend challenge is all about cutting back on spending to increase savings. It can give a good insight into where your money goes and helps shift spending from habits to intention.
How to try it:
- Start with a no spend day, weekend or week
- Focus on non-essential purchases only
- Redirect money you save directly into a savings account.
Ideas for no spend swaps:
- Homemade coffees and lunches instead of takeaway
- Wearing what’s in your wardrobe
- Choosing free activities over paid ones.
Even small changes can form long-term habits and meaningful savings.
Simple January money saving tips
- Start saving early to build momentum
- Automate savings with monthly standing orders
- Use separate savings pots for each goal
- Set realistic targets and celebrate small wins
- Review progress regularly and adjust as needed
- Consider easy access savings accounts for flexible, no-strings-attached access
- Try simple budgeting methods like the 50/30/20 rule
- Build habits through consistency, however small the amount
- Choose savings habits that fit your lifestyle
Opening a savings account can be the first step. Setting up a small standing order and choosing one clear savings goal can help you start saving without feeling overwhelmed.
This depends on the individual, but jam jar saving is a popular alternative to detailed spreadsheets as it’s simpler, more visual and often easier to stick to.
An easy access savings account lets you save flexibly, with the ability to deposit or withdraw money when you need to. They’re often suitable for short- to medium-term savings goals.
Yes. Savings pots, or jam jar saving, are a simple and effective way to organise money, track progress and stay motivated when saving for multiple goals.
Jam jar saving, budgeting rules like the 50/30/20 rule, and savings challenges are all popular ways to save money. If you want to become a regular saver with minimal effort, consider opening an easy access savings account and setting up a monthly standing order.
Ways to save with Hodge
If you’re ready to make healthier financial choices and build a balanced money mindset, explore our personal savings accounts and work towards the future you deserve.
At Hodge, we offer a range of savings accounts to suit different goals. Our Easy Access savings account is designed for flexible savers who want to deposit and withdraw their money at times which work for them, while still growing their savings pot.
This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.