Dear Christine,
I have the worst time saving money. My “rainy day” fund is used up every other paycheck. From a new set of tires here…to a new set of brake pads there — I cannot keep up. Someone said that you need 5-8 months savings. I can’t even save up 5-8 days! Why is it so hard?
“No Savings in Salt Lake”
Dear “No Savings,”
Life gets expensive and things come up all of the time; I know. There is a big trick to savings when you have a lot of expenses – saving small amounts and then tricking your brain into forgetting about the money.
Here is one of the easiest ways to start: pay your bills as soon as you get them. How does that save money? Well if you are like most people, you wait until the very last day to pay your bills. However, when you start gradually trying to pay them as they first come in, the money is "saved" in a "little pocket." If you are in a pinch and need some extra money, you have this buffer of a few dollars. If you already pay your bills as you get them, you already know this trick.
But you definitely don’t stop there! Think about opening a separate bank account at one that is not easily accessed by you. By easily accessed, I mean try to find one that is separate from your main bank (one you can’t access with your checkbook, debit account or has an ATM a half block away. Start putting away money that way. Many employers will even split a paycheck into two separate banks. As you continue putting savings away and “hiding” it from yourself, you continue to want to do it. Thanks to bank reviews on the internet, finding the best banks is now really easy.
One of my credit cards (that I pay off every month) has a great incentive program. I use it, pay it off every month, save up all year, and when the holidays roll around, I can get 3 people Christmas gifts. Try writing down 5-10 ways to "trick" yourself into saving money and you will find that it is actually fun and easy. Some people even find it obsessive once they start.
Happy savings!
Christine
