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    • MrsLWW
    • By MrsLWW 17th Mar 17, 2:12 PM
    • 66Posts
    • 217Thanks
    MrsLWW
    Jam Jar Accounting
    • #1
    • 17th Mar 17, 2:12 PM
    Jam Jar Accounting 17th Mar 17 at 2:12 PM
    Hi,

    Just wondering if anyone else does jam jar accounting (i.e. a bank account for each category of spending). If so, what are your categories and how much do you budget into each account?

    Currently, DH and I have the following:

    1 x each - current accounts (IN: wages (approx £1600 each: OUT: mobile phone bill and SO's to the following: )

    - 1 x joint - bills account (currently santander 123 (£750 each), gives us cash back and approx £300 left after bills - £250 of which is going towards early repayment of debt)
    - 1 x joint - fuel/shopping/birthdays/socialising (currently Clydesdale £300 each - however spending is a little messy so I proposed jam jarring this down further)
    - 1 x each spending accounts, RBS,DH uses £150, I use £100.

    I also have another account for a rental property, but that takes care of itself with a little profit each month, so I don't touch that, incase of emergency, repair, tax, vacancy etc.)

    I was planning on opening another 3 joint accounts so that the fuel/shopping/birthdays and christmas/socialising each have their own spend amounts. (Obviously not all at once don't want the credit rating damaged).

    So I would have:

    1 x joint - fuel account - £80 each
    1 x joint - shopping account - £115 each
    1 x joint - christmas/birthday - £75 each
    1 x joint - socialising - £40 each

    Once we have paid off out debts we might open up another for holidays and use our savings account for saving up for big purchases such as cars (determined once we are debt free, it will mean debt free for everything except the mortgage).

    Does anyone else do the same? Or do you have any other methods?

    Cheers
    Debt peak approx £30,000
    Total debt Jan2017: £21,249 Feb2017: £20,953 March17:£19,223 April 17: £18,463.89
    My parents always said "If you can't afford it cash, you can't afford it!" so true!
    .... mind you, turns out we can't afford much lol
Page 1
    • MrsLWW
    • By MrsLWW 17th Mar 17, 2:29 PM
    • 66 Posts
    • 217 Thanks
    MrsLWW
    • #2
    • 17th Mar 17, 2:29 PM
    • #2
    • 17th Mar 17, 2:29 PM
    I should also add that most cards for these accounts are kept hidden in the safe so that we can't just spend willy nilly. If we want to use the money from the accounts then we have to physically retrieve the cards which means it takes the impulse spending (something both DH and I are guilty of, particularly DH) out of the picture.
    Debt peak approx £30,000
    Total debt Jan2017: £21,249 Feb2017: £20,953 March17:£19,223 April 17: £18,463.89
    My parents always said "If you can't afford it cash, you can't afford it!" so true!
    .... mind you, turns out we can't afford much lol
    • loey93
    • By loey93 17th Mar 17, 3:12 PM
    • 24 Posts
    • 7 Thanks
    loey93
    • #3
    • 17th Mar 17, 3:12 PM
    • #3
    • 17th Mar 17, 3:12 PM
    Yes I do this as well!

    I currently have 2 bank saving accounts - One is for holidays and the other is for a house deposit. Then I have two jam jar savings at home with cash in, one is for weekends away or a shopping spree.. and the other is one that I intend on keeping for as long as possible until I smash it open lol !

    Each month I put in as follows,
    ISA (house deposit) £100.00
    Holiday Fund £100.00
    Weekends away £50.00
    Random savings (Any £5.00 notes or £2.00 coins) So probably equates to around £20.00
    Aiming to pay debts & save!
    • MrsLWW
    • By MrsLWW 17th Mar 17, 3:17 PM
    • 66 Posts
    • 217 Thanks
    MrsLWW
    • #4
    • 17th Mar 17, 3:17 PM
    • #4
    • 17th Mar 17, 3:17 PM
    Thank god other people do this too, I was begining to wonder if I was a mad woman lol!

    I wish we had the ability to have cash in the house, we previously did have physical jars that we kept money in but my husband was forever siphoning off of one account into the other and I couldn't keep track of what we were spending and where!

    Well done you, hope you're close to your deposit soon!

    Thanks again!
    Debt peak approx £30,000
    Total debt Jan2017: £21,249 Feb2017: £20,953 March17:£19,223 April 17: £18,463.89
    My parents always said "If you can't afford it cash, you can't afford it!" so true!
    .... mind you, turns out we can't afford much lol
    • loey93
    • By loey93 17th Mar 17, 3:39 PM
    • 24 Posts
    • 7 Thanks
    loey93
    • #5
    • 17th Mar 17, 3:39 PM
    • #5
    • 17th Mar 17, 3:39 PM
    Haha I'm glad someone else does this as well!

    Yeah sometimes I find it quite difficult having cash in the house as I am always so tempted .. but so far so good! (mind you I have been doing it for about 3 months)..

    Thank you it seems like an impossible dream of owning a house at the minute.. I have £1,000 in my ISA so far and I'm aiming for £10,000
    Aiming to pay debts & save!
    • trailingspouse
    • By trailingspouse 17th Mar 17, 5:30 PM
    • 1,866 Posts
    • 2,535 Thanks
    trailingspouse
    • #6
    • 17th Mar 17, 5:30 PM
    • #6
    • 17th Mar 17, 5:30 PM
    No, I don't - I have it all in a Santander account (originally having it all in the same place meant I could achieve the 3% interest rate).

    However, I do this with our business accounts - we have a current account that everything goes into and comes out of, but I have three other accounts - VAT, Corporation Tax, and sub-contractors. Whenever we receive money with a VAT element, the VAT goes straight into the VAT account, whenever we pay ourselves a dividend 20% goes in to the Corporation Tax account, and whenever we take on a sub-contractor their first month's money goes in to the sub-contractor account. These accounts earn a (very) small amount of interest, and it also means that money that doesn't actually belong to us (ie it belongs to the Revenue, or to the sub-contractor) doesn't get spent by accident.
    • polymaff
    • By polymaff 17th Mar 17, 5:40 PM
    • 1,526 Posts
    • 656 Thanks
    polymaff
    • #7
    • 17th Mar 17, 5:40 PM
    • #7
    • 17th Mar 17, 5:40 PM
    No, I don't - I have it all in a Santander account (originally having it all in the same place meant I could achieve the 3% interest rate).

    However, I do this with our business accounts - we have a current account that everything goes into and comes out of, but I have three other accounts - VAT, Corporation Tax, and sub-contractors. ...
    Originally posted by trailingspouse
    And all these accounts are real BUSINESS accounts - or are you using personal accounts against their Terms and Conditions?
    • jamie_02
    • By jamie_02 17th Mar 17, 6:15 PM
    • 58 Posts
    • 33 Thanks
    jamie_02
    • #8
    • 17th Mar 17, 6:15 PM
    • #8
    • 17th Mar 17, 6:15 PM
    Yeah I do this:

    1 Barclays Bank Account, salary in and two cheap DDs for cash back
    1 firstdirect 1st Account, personal loan and other misc DDs out (those which won't earn cash back at NatWest). This siphons down again to a Regular saver, for big holiday, and Savings Account which is currently holding the money from scrapping my car, intended to buy a bike soon.
    1 Nationwide Flexaccount for DDs paying out to my Nationwide mortgage and credit card. This then siphons down to Flexclusive Regular Saver for annual bills (e.g. Home insurance) and other savings account which hold money for credit card payment every month and other bits and bobs.
    1 joint Nationwide Flexplus for joint spending and to split two-ways on account benefits, making them essentially half price each.
    1 Lloyds Classic Account for DD paying off balance transfer credit card. Whilst the APR is currently 0%, I'm saving the balance in Lloyds Regular Saver.
    1 NatWest Reward account for cash back on DDs to council tax, water, TV, phone, broadband, gas and electricity.
    1 TSB current account for cash back on travel contactless spending.
    1 Halifax current account for buy-to-let which includes rent in and bills out, and takes care of itself.
    Finally 1 Monzo account for day-to-day spending.

    I find it helps my budgeting and ultimately means I spend less.
    Last edited by jamie_02; 17-03-2017 at 6:19 PM.
    • TheShape
    • By TheShape 17th Mar 17, 6:57 PM
    • 820 Posts
    • 567 Thanks
    TheShape
    • #9
    • 17th Mar 17, 6:57 PM
    • #9
    • 17th Mar 17, 6:57 PM
    I run my finances completely differently to this. I have multiple current account and regular savers, always aiming for the highest rates. I fill the highest paying accounts to their maximum and do the majority of spending on a 0% purchase credit card. The only Debit Card spending is £100 p/m for the TSB Classic Plus Cashback. If I need cash, it is withdrawn from the lowest paying account as are any bank transfers.

    If a better paying account becomes available, I empty as much as I can from lower paying accounts into it.

    However, my Nationwide FlexDirect (%5) is my main account with all my regular bills paid from it. As soon as a bill is paid though, I top it up to £2500 (the highest interest bearing balance) from whichever of my accounts is currently paying the lowest rate of interest.

    I never specifically budget for anything, I just buy what I need and what I want but always keeping track of how much money I have overall.
    • DBX
    • By DBX 17th Mar 17, 11:28 PM
    • 3 Posts
    • 14 Thanks
    DBX
    At present, I have one current account at Nationwide giving 5% interest, I also have a link Savings account there giving 5% interest. One of my investment account is maturing next month. I would have about £5,000 to re-invest. Since savings account don't pay much interest, I am considering opening two more current accounts in other banks to earn more interest.

    I would appreciate if anyone can give me some help with this.
    • Anthorn
    • By Anthorn 18th Mar 17, 5:00 AM
    • 2,973 Posts
    • 774 Thanks
    Anthorn
    There is in fact no need to open several accounts for the jam jar method. There is a variation on a pre-paid account, the "Change Account" which is dubbed a "transactional account". It comes in two parts, the Debit Mastercard pre-paid card and several wallets into which income is divided and paid out by DD, SO, transfer or indeed by debit card. Faster payments. Online and mobile app. Rewards program. Payment alerts. No overdraft. No credit check. Too comprehensive to list all the account features in this post.

    There is an account fee of £4.25 per month plus other fees for payments out and ATM but the convenience may be worth that to you.

    Issued by the well established U.K. bank R. Raphael & Sons plc.

    Home page: https://www.thechangeaccount.com/
    Costs and limits: https://www.thechangeaccount.com/costs/

    A similar alternative may be offered for free by your local Credit Union.
    http://www.abcul.coop/home
    Last edited by Anthorn; 18-03-2017 at 5:24 AM.
    I don't think and I know I don't think so therefore I am. At least I think so. But hold on I don't think ... er ...
    • datlex
    • By datlex 18th Mar 17, 11:35 AM
    • 1,184 Posts
    • 1,023 Thanks
    datlex
    I have been doing this for ages though I call it "Piggy Banking". A name however is just a name. I have found that my money lasts better doing so.
    I have spends accounts (including card covering account), bills accounts (all earn me rewards), savings accounts (longer term and presents), my presents fund is partially funded by rewards gained from my bills accounts.
    • Shakin Steve
    • By Shakin Steve 18th Mar 17, 12:04 PM
    • 684 Posts
    • 483 Thanks
    Shakin Steve
    I run my finances completely differently to this. I have multiple current account and regular savers, always aiming for the highest rates. I fill the highest paying accounts to their maximum and do the majority of spending on a 0% purchase credit card. The only Debit Card spending is £100 p/m for the TSB Classic Plus Cashback. If I need cash, it is withdrawn from the lowest paying account as are any bank transfers.

    If a better paying account becomes available, I empty as much as I can from lower paying accounts into it.

    However, my Nationwide FlexDirect (%5) is my main account with all my regular bills paid from it. As soon as a bill is paid though, I top it up to £2500 (the highest interest bearing balance) from whichever of my accounts is currently paying the lowest rate of interest.

    I never specifically budget for anything, I just buy what I need and what I want but always keeping track of how much money I have overall.
    Originally posted by TheShape
    This is pretty much the same as me. My outgoings are pretty much the same each month, so most of my dd's come out of my Barclays current account which pays nothing in interest. Any leftovers are put into one of our Tesco accounts at 3%. I spend on my 0% barclaycard, but as I pay in full each month, I'm not really getting any benefit from the 0%.

    To keep track of everything, I need nothing more than a google sheets spreadsheet.
    I came into this world with nothing and I've got most of it left.
    • badger09
    • By badger09 18th Mar 17, 12:37 PM
    • 4,700 Posts
    • 3,882 Thanks
    badger09
    At present, I have one current account at Nationwide giving 5% interest, I also have a link Savings account there giving 5% interest. One of my investment account is maturing next month. I would have about £5,000 to re-invest. Since savings account don't pay much interest, I am considering opening two more current accounts in other banks to earn more interest.

    I would appreciate if anyone can give me some help with this.
    Originally posted by DBX
    There are several threads about this, on this forum & also on Savings and Investments.

    Have you read this?

    http://www.moneysavingexpert.com/savings/which-saving-account

    As your question is off topic for this thread, perhaps you could start a new one if necessary, after doing some reading
    • trailingspouse
    • By trailingspouse 18th Mar 17, 10:03 PM
    • 1,866 Posts
    • 2,535 Thanks
    trailingspouse
    Polymaff - yes, these are all business accounts.

    I resent your suggestion that they might not be, on the basis of no evidence whatsoever.
    • polymaff
    • By polymaff 19th Mar 17, 9:54 AM
    • 1,526 Posts
    • 656 Thanks
    polymaff
    Polymaff - yes, these are all business accounts.

    I resent your suggestion that they might not be, on the basis of no evidence whatsoever.
    Originally posted by trailingspouse
    Not a suggestion, but a question. Here's another one: How much are the total account fees, say, per month?
    • trailingspouse
    • By trailingspouse 19th Mar 17, 7:05 PM
    • 1,866 Posts
    • 2,535 Thanks
    trailingspouse
    I resent it, whatever you want to call it.

    Since you ask - £6.50 per month on the current account (reduced to £5.52 by a 98p per month loyalty bonus). None on the savings accounts, but they attract a very small amount of interest. Do you have a question about that?
    • bigadaj
    • By bigadaj 19th Mar 17, 7:49 PM
    • 8,757 Posts
    • 5,544 Thanks
    bigadaj
    I resent it, whatever you want to call it.

    Since you ask - £6.50 per month on the current account (reduced to £5.52 by a 98p per month loyalty bonus). None on the savings accounts, but they attract a very small amount of interest. Do you have a question about that?
    Originally posted by trailingspouse
    How much interest?
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