How to Hide More Savings in Your Budget
We all have trouble saving money. Maybe you want to save more, but your budget is already limited and every salary is spent even before it is deposited. Maybe you’re working towards a goal, such as saving money for a vacation or paying with a credit card. Either way, here are some techniques and tools to help you save more money.
Save when you spend money
Even the best public sector employees are sometimes prone to impulsive spending, be it a gadget that is on sale or some kind of nonsense at the checkout. If you have serious problems with impulsive spending, you must find the root of the problem and break the habit. Here’s a trick to help you along the way: every time you spend money, save the same amount you are spending .
For example, if you want to buy this new gadget, you have to take $ 49 (or whatever amount you spent) and add that same amount to your savings account. When you are tempted to spend money, you know that you will have to spend twice the price, which can be a deterrent. If you buy, you still save money, and if not, you resist your urge, which is great. You will have more savings later.
It’s also helpful because it makes you think twice about your spending, and spending mindfully is good . However, you can use this method as you see fit. For example, if your finances are too tight to begin with, this may not be for you. However, if you are looking for ways to increase your savings, you can try to make your impulsive spending work in your favor.
Direct deposit to your savings, transfer of expenses to your check
Make saving money your default when you get paid. One way is to pay yourself first . With this traditional method, you make direct deposit and automatically deposit payments into your savings accounts.
However, you can take this advice and set up a direct deposit right on your savings . Writer Brian Reid at InvestingAnswers suggests :
Have two bank accounts with one bank; checking and savings account. Set up accounts so that you can transfer money between two accounts. And here’s what is important, unlike having your money first deposited on a check, it will be deposited in savings. Transfer only the amount that you have allocated in your budget for review.
This method works in much the same way as pay yourself first, except that it retains the default. This may seem like a pointless strategy – why not just create a savings goal and automate a monthly transfer from your checking account? Of course, this is one way to do it. However, I like this method because it is economy oriented. He prioritizes your savings over your checking account, which can change the way you think about your own priorities and encourage you to save your money rather than spend the extra money.
Save your unexpected luck
In paying off my student loan, I created a rule for myself to increase the payment: any windfall income will go to my goal . Whether it’s a tax refund, a cash-back reward, or just the $ 5 bill I found in the cushions of my couch, I automatically counted any extra money as a “bonus” payment of debt.
You can do the same with your savings. This takes some discipline; you shouldn’t waste “extra” money when it falls on your lap. However, it is much easier to resist spending when you already have a rule of thumb about what to do with that money. As the money writer J.D. Roth suggested , you can also set aside five percent of that windfall on a fun toy and use the rest to accomplish your goal. In any case, the idea is the same: to set some guidelines before you come up with a windfall.
This method works well if your budget is already tight. You can save yourself from time to time without cutting your budget even further.
Use the app to do it automatically
There are several useful apps that make it easy to save money. Qapital , a free iOS and Android app , lets you create fun rules for your savings . You can set up a rule to round your purchases and keep the balance. You can automate the “save when you spend money” rule. You can connect your Qapital account to IFTTT and create a rule that saves money every time you complete a task – the possibilities are almost endless. You must register for a Qapital account to use the app, but then you can easily transfer funds to your regular account whenever you want. Overall, the app makes saving money more fun and automatic.
Digit’s free web app (also available for iOS and Android ) works the same way. However, instead of creating rules, the app just saves what it thinks you can afford. He looks at your spending habits, your future bills, and your income to decide how much “extra” dollars you can save each day or week. Chances are, you won’t be missing out on cash, and at the end of the month, you might be surprised at how much extra cash you have saved up. You can squeeze more savings out of your budget with no extra effort.
Test yourself
Monthly assignments are a great way to save a little more. This year, for example, we offered readers to cut costs in restaurants , to save a trifle and bargain bills . Personally, I’ve saved over $ 1,000 on these tests this year, and many of you have done even better.
The point is, small problems can help increase your savings, if only slightly. They are temporary so you are not overwhelmed and they are focused on one activity, so they are easy to learn and apply.
You can start with a Free Weekend and challenge yourself to spend zero money on the weekend – no movies, no restaurants, no Target races. You might have to get creative and find something unique, but chances are you’ll still have a pretty fun weekend and save some money in the process.
We all know it’s important to budget right and save what we can. Sometimes, though, you want to cram a little more into your savings – whether it’s reaching a goal, building an emergency fund, or just building better habits. If you are looking to increase your savings, these methods can help.