Are you trying to save money? Did you get a raise at work? Did you manage to pay off a bill? Did you do well at a garage sale?
We all know that by shaving a few dollars off here and a few dollars off there that we can lower our spending, but we can also use that same way of thinking for saving money as well.
Example: Were you lucky enough to get a raise? Maybe after taxes are taken off it may not seem like much, but even if it is $10.00 more per pay, it is something. It would be very easy to totally absorb that extra money into the daily spending. Our spending tends to keep up with our income. When the income rises, so does the spending. We all have great intentions of putting money away, but we look for larger amounts in our budget and we just can't find it.
Well, take that $10.00 each pay and get the bank to automatically transfer it to a savings account that you cannot touch easily. This way you never saw it, and it is now going into the savings account. You may think this is not much, but maybe you can find a few more dollars to add to it?
- Did you finish making car payments? Before you get used to that extra money, get it transferred right away to the savings account. Your bank will do this for you, and this is a great way to save money without having to handle it. I don't know about you, but if it is in my hand then I will find something to spend it on!
- Do you have a jar for change? Maybe once a month add up your jar of change and roll it and take it to the bank and deposit it, in your new savings account.
- A little bit here and a little bit there, all add up. Did you quit smoking? My hubby did this, and put the money away. After a few years, he was able to afford the motorcycle he wanted!
- Did you get rid of clutter at a garage sale? Why not split the difference.. you get half to spend now and the other half goes in the savings account. Go the bank right away, or it will find a new home!
- Do you have designer style clothes that you don't wear? Could you try and sell them at a consignment shop? Put that money in the savings account.
- Did you have a bill go down? Such as your kids have moved out and the car insurance dropped? Take the difference and save it..
Is there something you are saving for? We all need a bit of emergency padding in our bank accounts, but I find if you have something in particular you are saving for, you are more likely to try and find those extra dollars. It all adds up, but we can quickly get into the habit of having cash slip through our fingers.. So, the minute a bill is paid up, you should roll it towards another bill, rather than find something to spend it on.
You need to take the time to get to your bank, and figure out an amount that you can transfer automatically to your savings account. This savings account also needs to be a bit hard to access. You don't want to have a weak moment at the mall and try and withdraw this money from a ATM machine!
You can make it so that you would have to withdraw this money in person, rather than be able to use the ATM. If you have this done automatically, then you can see what money you have for your daily living. You will get used to the amount, and you will not notice that extra money being put away for your rainy day fund, emergency fund, or whatever your dreams may be. This puts you back in control of your money.