In an ideal world, we’d all easily save money. We’d have it sitting in our bank account, and we’d never touch it, never forget that extra bill coming out that week, or get over-excited at the pub on Friday night and shout everyone a round.
Maybe you are this person, but I am certainly not. While conscious of personal finance, I tend to be a bit too relaxed when it come to spending money. I figure I can make some more next week, or I’ll save extra, or an additional meal out won’t matter all that much when of course it does. So I take measures to protect myself from myself. Here’s how to hide money from yourself in order to save it.
Redirect The Source
Find a no-fee bank account, and use it for all extra income you earn apart from your regular job. If you’re working a couple of nights a week at the local eatery, get the extra money deposited into your separate bank account. The same is true of freelance work, or depositing babysitting money. Don’t link it to a card, and try and forget it exists otherwise. You’ll find yourself saving a lot of money, without the usual effort.
Revise Your Internet Accessibility
Internet banking has revolutionized my life, but also made my money increasingly accessible. Which can be no good for a night out on the town. Think about going offline for your savings account, or at least not linking it to your standard bank account in order. The more effort it is to access, the likelier you are to leave it alone.
Deposit It With A Friend
For those of us with extreme money-spending tendencies, call upon the assistance of a kindly friend. Usually, this is suggested for people who spend a lot of money on their credit card. Perhaps you’ll need the cash occasionally. Most of the time, however, you’ll have to work yourself up to drive for ten minutes and ask your friend which is, at best, a bit embarrassing. A very effective saving technique.
Stop It At The Source
Struggling to save for retirement? Ask your employer to increase your voluntary contributions to super from your wage. You have no way of accessing the money, you’ll never even see it. It’s an excellent way to improve your superannuation savings.
Hide It Around The House
A suggestion from Budgets Are Sexy, you can attempt to hide it from yourself around the house. The guest blogger hides $100 a month, each time in a different place. She then sets a reminder of the place on her Google Calendar (that step being especially important I suspect) and tries to forget about it. I don’t know this would necessarily work for me, as I am remarkably good at remembering which book I hid a twenty in, and remarkably bad at any similar recollection of where I put my keys. If it works for you though, then all power to you.
When it doubt, move your money automatically. Pay your bills immediately and through direct deposit. Deduct your superannuation and savings as soon as you get paid. Humans are resourceful creatures, we tend to make do with what we’ve got. So, if we lower the potential amount, there are savings to be made.