If you’re one of those people who tend to spend money like it’s going out of style, you need to look at these tips for saving money. With a little bit of work, you can create a habit of saving that will help you grow your nest egg or save for something special like a vacation or holiday. Read on to discover 5 tricks for saving money.
1. Give yourself an allowance
Instead of eyeing that pair of new shoes with envy, give yourself a discretionary fund each month, week or pay period to spend any way you wish – but know that once it’s gone, it’s gone. Giving yourself a set spending amount prevents you into dipping into savings for frivolous purchases.
2. Use an inconvenient bank
If you have trouble keeping your hands out of the cookie jar, put your funds in a bank that’s difficult to get it out of. Online banks that require 24 to 48 hours for a money transfer can help prevent you from running to the ATM every time something catches your eye.
3. Picture your goal
If you’re saving for something specific, keep that idea in mind when making purchases. Knowing that your cash is going towards something specific makes it easier to save. Some people find it helpful to post a picture of their reward to stay inspired to sock away money.
4. Add it up
An old savings trick is to round up your purchases in your ledger to dollar. For example, for a purchase that’s $11.12, you would write it in your ledger as $12.00. Then, at the end of the month, calculate the discrepancy between your ledger and your bank statement, then transfer that amount to a savings account. You won’t miss the money because you thought it was gone anyway.
5. Think of savings as a bill
Thinking of savings contributions as a bill is an easy way to force yourself to add to it. You pay the electricity every month and the cable every month, so why not pay the savings while you’re at it? Ever little bit helps, so even just $20 a month will add up with time.
Find the savings trick that works for you and make saving your money a priority. Not every technique will work for every person, so you need to experiment and see what options appeal to you. Start saving today using one of these sneaky techniques.