Tax Yourself Exorbitantly to Limit Impulsive Spending
This month we challenged you to limit impulsive spending and save that money instead. Forbes writer Hala Turjalay offers an interesting savings trick that can help you do just that: tax your spending habits.
Turjalai writes:
Here’s how it works: For every dollar you spend on your specific vice – in my case it was leisure spending on the weekend – put 50% of that amount in savings on Monday morning … you can change the tax rate to any amount. which suits you. If you can change 100% tax, then go for it, but if 20% is all you can afford, then it works too. 50% I was not going to miss payments on bills, but it was still a punishment, and very painful.
This is a variation of our previously mentioned “save when you spend money” advice. If you’re having trouble matching your dollar spending to your dollar bill, this is an effective way to make the process easier. For more information, go to the full version of the message at the link below.