3 Savings Methods That Help You Get What You Want
Whether you want to save up for the latest gadget, future travels, or to fund hobbies, finding effective savings methods is often the most difficult task you’ll encounter when attempting to hold on to money.
More often than not, you’ll cut down on your spending by attempting to be frugal for a short amount of time. But before too long, that money begins to burn a hole in your pocket and you find yourself blowing a large amount on an impulse purchase. After the initial high from the purchase has worn off, reality will set in and you’ll find yourself in search of the receipt to check for a return policy.
Avoiding the crushing disappoint of a failed savings venture is one of the best reasons to keep a savings account. If you’ve opened a checking account recently, your bank probably opened a savings account alongside it. Whether you’re currently using it or not, saving in the separate account should crucial to your savings method.
The following are good examples of savings methods that can be used to build up cash by changing how you think about and handle your money.
Drop and Save
We all have vices that tend to pick away at our money. These vices, whether they be Starbucks or fast food, tend to be easily justifiable at purchase. However, small as they may seem, they add up quickly. And when the time comes that you really want something, you can’t seem to justify that purchase because you lack the funds.
Work on recognizing situations where you could do without spending and put what you would have spent on that purchase into your savings account. As your spending habits improve, your savings will increase and you’ll have enough to splurge while finally being able to justify a big purchase.
Taxing yourself may not sound fun, but using it as a way to save money is an effective way to build up savings.
You’ll need to figure out a percentage that you can reasonably set aside from each of your paychecks. Set up an automatic transfer with your bank that occurs when you usually deposit your checks. The automatic transfer will prevent you from overspending after payday and get you used to spending on a smaller budget, while your growing savings wait for a rainy day.
The 52-Week Challenge
It’s a simple concept: start your savings with $1 and each week add another on top of what you put in the previous week. Within 52 weeks (one year), you’ll have saved $1378.
On paper, it seems like a great way to build up a decent amount of savings. Unfortunately, you may not have the extra income needed later on to reach the goal.
Despite that, it’s a fun, easily modified challenge that helps introduce the idea of saving.
Related: How To Be Frugal In College
Image: Isaac Torrontera