Saving money can be difficult at the best of times, life is expensive and in turn I find myself spending overly large sums of money on things and services I don’t really need. The reason I do this, is because I have money available in my account or wallet.
To combat this, today I will be discussing things that I have started to do in order to save more money and make my money less available, in a sense; forcing myself into savings mode.
1. Limiting the amount of cash in my wallet
When I have money in my wallet, I spend it. How many times have you had $150 or so in your wallet only to find by the end of the week it is gone, yet you still brought your lunch to work everyday? I find myself in this position all the time. What do I spend it on? Taxis, Wine, Industry magazines for work, chewing gum, mints, train tickets, parking, a few diet cokes – the list goes on and my wallet gets thinner.
So from now on, I will be limiting my wallet to only have $40 per week in it – hopefully that way this is all I will spend out of my cash reserves.
2. Leaving your credit cards and ATM cards at home
Such a simple money saving tip, yet one of the most productive. If you leave your cards at home, you will significantly decrease how much you will spend when out and about. I figure there should be no real reason to need to have access to my savings if I have a solid $40 in my wallet, my own lunch at work and my weekly train ticket already purchased. If you have ever used this method and found significant problems with using it – drop a comment at the end of this article to let us know why.
3. Ensure that your pay cheque is direct deposited into your account
Many Australians are still getting their pay cheque issued to them in cash or cheque that is redeemable for cash. If you are like me, I used to cash the cheque or pocket the cash and quite quickly I would find myself with an overly heavy wallet with a couple of hundred dollars in it.
Organise that the money gets direct deposited into your nominated everyday account and if possible, organise for a direct debit of a certain amount of money to be transferred into your savings accounts that you can’t touch. I try and do about 20% of each pay cheque; that way my savings account quickly grows and I get excited about seeing the number increase (gives me motivation to see my nest egg building).
4. Change jars or coin tins
Every day I come home, I find myself with a small handful of coins. When I was younger and my father would come home, I loved this – he would ask me if I had been good and if so, I was given a handful of silver coins (occasionally a few gold ones, which were extra exciting). So why not try and save these coins by putting them into a change jar or coin tin? They will eventually add up and give you a significant figure to bank or if you are kind hearted and generous, start a tradition with your kids.
5. Over saving techniques
Another way of forcing yourself to save money is by over saving techniques (i think I just made that term up, but I think it is rather self explanatory). The idea is that whenever you do transfer money into your savings account or perhaps your tax account if you work for yourself – why not over deposit into it so that after a year or your tax return you find yourself with an extra large sum of money to put towards your savings goals?
How do you force yourself to save money?
Tell us how you force yourself to save money, any new tips or tricks for other readers? We would love to hear them, so drop a comment below if you have a spare 5seconds.