We all have that one friend that always seems to have money set aside for any and every occasion (birthday gifts, new phone, short trips). And the craziest part: you know for a fact they do not make more money than you! So, what’s their secret?
Here are four ingenious but effective money saving skills.
Trying to save up for a trip around Europe? Set a specific amount you want to save and set an end date. Create calendar reminders along the way as checkpoints to help you keep track of your progress. Relying on visual cues like calendar reminders will subtly signal your brain to resist non-thrifty temptations. Getting reminded with an alert also helps you check your savings progress once a week/month (whatever your preference), which will help you to stay on track on your savings goal.
Brick and mortar banks aren’t what they used to be, and a lot of reputable financial institutions are coming up with interesting accounts (high yielding plans) that are much more competitive than traditional banks. If you have decided to set aside a sum of money every month that you won't be touching no matter what (money for retirement, for example), maybe you should consider a savings plan with high-yielding returns. But be warned, these plans normally lock you down for a long period of time (e.g. 15 years) before you can withdraw any money.
A common practice that I’ve noticed all my thrifty friends adopt is to portion out your money for the week and not have any other spare money lying around anywhere in order not to overspend. Start your week by preparing your weekly allowance in cash and keep it in your wallet. Tell yourself you must not withdraw any extra money for the week. Which means you only have X amount of cash to spend everyweek, and nothing more. You will find it easier to keep track of your expenses because you're forced to make smart spending decisions. You'll also avoid getting a credit card bill shock at the end of the month.
Trying to out-save your significant is actually a fun way to help you save money. Not to mention, your significant other can also help to remind and curb your bad spending habits in order to help you save money. One idea: track your expenses in a shared Excel document and see who can spend less each month. Sure, it’s competitive and may even cause some tension, but at the end of the day, it benefits the both of you.
Saving money has always been an uphill struggle for me. After changing my spending habits and adopting these ingenious and fun saving habit, I’ve managed to save up a considerable of money, and the best thing is, I kinda enjoyed it! Here are more habits you should develop to save a ton of money, and before you now it, you might even be able to take that long vacay to Paris you've always dreamed of.