Okay so money is a pretty key thing in society these days. No way am I ever going to say it’s the most important thing in my life, nor should it be in yours. There are a lot more things that should be the focus of your life. Money is just a convenience that allows you to do some of the things you dream of. That’s what it is for me at least, nothing more nothing less. And for me, saving it has always been key and I swear somehow ever since I was little I’ve been good at saving. So I’ll share my tips with you guys today.
I don’t know how good my tips will be to be honest, because literally for me it seems effortless. I can still remember when I was little and my big brother would be coming in to borrow some money from me, since I always had some hidden away. I gave it to him, but every time I’m pretty sure I had to go to our mom when I wanted my money back. Sad little me.
⇒The best tip I can possibly give is this: out of sight, out of mind.
Keep your money away from you in some way so that the temptation to use it isn’t even there in the first place and there are all sorts of techniques to doing this. I have several that I use. One is with my bank account. My pay checks go immediately to my savings account, where I don’t let myself touch it, except that I also have what I call my Daily-Use Account. Every once and awhile I’ll transfer $50 or so into it from my savings so I have money I’m allowed to spend. I have proof this one worked, I started a job at the beginning of summer, used this and just recently bought my new macbook with the savings.
The other technique I have is really cool and I love it. They’re called Terramundi money pots.
These pots can hold up to $500 in dimes nickels and quarters. Once they’re full you smash them open. That’s the basics to the tradition, for more information click this link.
My most recent idea is something I heard of from the manager of the store I bought it from, Green Earth. I get my paychecks bi-weekly so what I’m going to do is every paycheck I’ll take out two $20 bills and slip them into my jar. That’s twenty dollars a week, even I have no idea how much money will be in there once it’s filled up.
⇒Another tip for saving money I have is a little trick I used awhile back. You can do it with any form of bill you like, but I used $5 bills. Basically, whenever you come across a five dollar bill, you put it away, into a jar, container, take your pick. And don’t touch it (obviously). Do this for an entire year. Then take a look at how much money you have. After I few months I had a hundred or so. Once again, this can relate to the whole, out of sight out of mind tid-bit.
Basically ^^^ yeah.
⇒Next tip is pretty basic, but an extreme struggle for almost everybody. Stop buying things you don’t need. It’s important to think about what is really necessary and what is just a luxury or something you want. Once you’ve built up enough savings that buying that luxury won’t be a big deal go right ahead, you’ll feel great about it.
This is definitely something those going into college/university need to consider. That is not a cheap thing to do, budgeting will become an essential part of your life.
⇒Now, since you’re not buying unnecessary things you can take a look at what you already have that you do or don’t need. Decide. Then sell it. There are plenty of ways to do it, two things my family has used before is 24 hours yard sale on Facebook and Kijiji. Simple and fast. That way you don’t have to go through the tedious process of a yard sale. Or even better, donate what you don’t need.
⇒Ask for help. Parents, friends, whoever you trust to take your money. Hand over the access to your bank accounts, ie. the card, keep the money jars with them. That way you can’t touch it, easy and simple.
⇒You don’t need to go out to have fun. Stay at home and hang around friends. No need to constantly go to the mall or the movies where you’ll no doubt be spending. Keep it to a minimum, that doesn’t mean destroy your social life. It just means find some ways to have fun in other ways. Your wallet will enjoy the relief.
⇒ Finally, I’ll move towards a slightly more serious way of saving. Bad habits, I don’t want to offend anybody I’m just putting a point out there. Something like smoking, too much drinking, etc. All waste a lot of money. I’ll go with smoking as my example.
A pack of cigarettes costs $15 (in Canada). Say someone smokes just three packs a week, $45 a week. There are about 52 weeks in a year, so you’ll end up with about $2,340.
Now guys, go ahead and use that as a saving plan. Pretend you have to put away that money, mentally, because that’s what it is for a lot of smokers. Maybe say you smoke five packs a week, that’s $3,900 a year. Or every day of the week, then it becomes $5,460. Use this as a saving plan and you’ll end up with enough to go on that trip you’ve dreamed of. Not a bad idea huh? And a better way to put away your money in my mind.
A little bit harsh for my last tip I admit, but it’s honestly a technique I’ve considered using before, but haven’t with the calculations, it’s not a bad idea.
Hope this tips are useful for you, lots of luck in the endeavour of saving.
Until next time,