Sneaky Ways to Save Money
We all know that saving money is hard, especially given the way the economy is going. It’s always the same thing. We say we’ll save on the next raise or when the car is paid off, but we never do. Savings has become something that we do when all of our other bills are paid off and, unfortunately, that’s not working for us. The reality is that there usually isn’t anything left over after we’ve paid all of our bills so we have to change our mindsets in order to achieve any savings.
Now, I say we because I have been guilty of this in the past. I’m very good at maxing out my contributions and then some to my retirement accounts; however, I’m not always so good with my liquid savings. Ideally, you want about six months worth of expenses saved, just in case. And in an economy where the job market is so uncertain, this really becomes important.
Now then, how do we build up a savings account and not feel the crunch anymore than we already do? Here are some tricks I’ve tried that have worked for me (and, they’re working for other people too because Bankrate.com posted a similar article about sneaky practices.)
1.) Treat your savings like a bill
I personally set my savings account up as a bill in my online bill pay that is automatically drafted every pay period. I tried having my employer just take a portion from my check and deposit it to savings, but that didn’t work because in my mind I still had that money. Thinking of it as a bill changes my perspective. I don’t think of that money as mine anymore. It belongs to the savings account. Ok, so technically it’s still mine; however, since I changed my mindset I haven’t pulled from the account like I would before when it was just a transfer from my paycheck.
2.) Live at least one raise behind
When you get your next raise, don’t include the extra money in your budget. Put that money in savings. You’re already used to living on the old salary, so instead of increasing your spending put the extra money away for a rainy day. Then, on the next raise, increase to what the previous raise was and put the rest away. You live behind the raises and it will help you spend less than you make, plain and simple.
3.) Get cash back
Anytime you go shopping and you’re asked if you want cash back, say yes. I know, I know. That sounds very defeatist to what we’re trying to accomplish, right? Not really. You’re not going to spend that money. Take and make a deposit to your savings or put it in a piggy bank you can stash away in your home. Don’t just leave it in the account and think you’ll transfer it because that rarely works out. Plus, as cash back you count it as part of the original purchase and then forget about it. Pretty sneaky, huh?
4.) Fast Food Jar
This works a lot like a curse jar where you add money when you curse. Every time you eat out at a fast food restaurant, add a dollar (or whatever amount you prefer) to the jar. This works on two things at once, if you think about it. If you eat out a lot, this method is going to show you just how much. Each time you add the dollar (or whatever you chose) you’ll see that jar building up with money. It’s great for your savings, but it’s going to make you really consider eating out. It does require some discipline, though. You can’t commit to this and then cheat because you don’t want to pay the jar a dollar. If you don’t think you can do this one, I recommend choosing other methods!
5.) Start your own laundry mat
Put a jar over the washer and dryer and each time you use either, add a quarter. Like the fast food jar, you have to be committed, but it’s a great way to see your savings add up. Once the jars are full, take them to your bank or local grocery store and exchange them for larger bills TO BE PUT DIRECTLY INTO SAVINGS.
Can you think of any other sneaky ways to save?
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May 16th, 2008 at 9:33 am
http://asktheexpert.blogs.money.cnn.com/2008/05/14/fund-your-future-and-pay-yourself-first/
I had just read this article, and then you have almost the exact same method for #1!
The only problem I see with the Fast Food jar and the Laundry Jar, I never have cash with me, I guess I could do the fast food one with my ING account, for every time I see it on a statement move x dollars over to another “Jar” account.
I do really like the idea of the eating out penalty, it helps against health reasons too!
May 16th, 2008 at 10:20 am
Hi Philip,
That’s funny that the reader who posted the question in your link does have a similar method. And here I thought I could really market that technique! (Just kidding). But, it really is effective to think of it as a bill. Totally different mind set.
The Fast Food Jar is one of my favorites too, because I do eat out a lot. I stay within my budget, but if I were to eat at home more, I’d have more money to save. So, I implemented this method and it has helped a lot. There are days that I just know it’s a fast food day, so I pull a dollar out of my account before I leave work and I’m good to go. I will say with your twist to this method, that’s a good idea; however, make sure you actually stick to it. If you’re only doing it once a month when you look at your statement you run the risk of not “having” the money once bills are due and then it just defeats the purpose. But, if you’re disciplined enough to make it work, go for it! Be sure to pop back in and let us know how it’s working for you!
May 20th, 2008 at 4:01 am
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May 20th, 2008 at 8:08 am
Thanks for the laundry mat idea. I’ll have to use that one.
May 20th, 2008 at 9:58 am
You’re welcome! I hope works for you!