4 Money Saving Tricks That Will Really Work for You
Today, we’re sharing about 4 Money Saving Tricks That Will Really Work for You as part of a sponsored guest post.
Most people would love the opportunity to save more money.
After all, we’d all like to have some extra cash to build a bigger safety blanket for our retirement, or to ensure that we have enough money for that vacation we’ve been planning. However, whatever your financial goals might be, there’s a good chance that you’re not reaching them.
Statistics consistently show that Americans have a particularly hard time with their savings. It might be something to do with the sales that are always tempting us to buy, or the fact that spending money online is so easy these days. Either way, it’s time to make a change to your savings strategy.
1. Play some Mind Games
Sometimes, the easiest way to transform your spending and saving strategy, is to change the way that you think about cash. Adding some more psychology into your savings routine is more effective than you might think. For instance, you could tell yourself that whenever you want to buy something worth more than $20, you have to wait at least a week before you can get it. This way, no matter what you’re thinking of buying, you’re forcing yourself to “sleep on” the decision.
More often than not, the impulse buys that you would have regretted later will have dropped out of your mind completely by the time the week passes. Another trick is to think of the money you’re spending in the form of hours you spend at work. For instance, taking out a loan for poor credit might mean another 8 hours a week at work out of your budget. We often value time a lot more than we value cash.
2. Let the Small Sums Add Up
A lot of people have problems with savings because they believe that it’s only worth “saving” if they’re putting a lot of money away at once. However, you don’t have to be saving $50 a month in order to make a difference to your bank account. A couple of dollars here and there can quickly add up, as long as you stick with it.
For instance, for years, people have used the change jar technique to collect cash. Rather than just allowing your change to gather dust in your pocket at the end of each day, throw it into a jar. Keep down that every time you have some extra cash left over from an expense, until eventually the jar is full. You can then go and cash that money in at the bank and add it to your savings. The chances are that you won’t even notice the change that you were putting away.
3. Automate your Savings
There are some things in life that are just better with technology. In the age of digital banking, you can even automate your savings to go out of your current account and into a separate account without you doing anything. All you need to do is ask your bank to set up a payment once a month on a specific day for the amount you can afford to put away. Remember, that amount is unique to you.
Ideally, it’s best to have the cash you want to put towards your savings taken out on the same day you get your wages. That way, when you check your account again later, you won’t see the extra cash that you wanted to save lingering in your current account. Automating your savings can make them feel like paying just another bill, so that you start to stick to your saving strategy without thinking about it.
4. Match Saving and Spending
Another fun, and creative way to improve your savings strategy for the new year, is to match your spending with your savings. For instance, if you buy yourself a coffee every morning on the way to work and that costs you $2, then put another $2 towards your savings too. This works well for those little habits that you generally won’t want to break on your own.
If you decide that you can’t afford to keep spending $4 on coffee every morning, then you’ll stop buying the coffee completely, and therefore save $2. On the other hand, if you choose to continue buying your coffee and taking the extra expense, then you’ll have another $2 in your savings account at the end of each day anyway – it’s a win, win. Just make sure that you can stick to the rules that you set for yourself.