Where does the money go? It seems to disappear from your bank account much faster than it can be replaced. Saving money is no easy feat, and millions of people struggle with debt burdens that are overwhelming. Here are some practical money saving tips that can help you eradicate debt, become more financially secure, and help you achieve the lifestyle that you have always wanted.
Open a Separate Savings Account
The secret to success with this money saving tip is that your separate savings account should be off the beaten path. You should not have a debit card or checkbook allowing you to access the account, and it should not be in a location that you frequently visit, such as near your office or the grocery store.
Tucking money away in a separate savings account will help you make a clear distinction between money that is for spending and money that is for saving. As the balance in your separate savings account grows, you will see that it is in fact possible to succeed in saving money.
Set Up Direct Deposit to Savings
A percentage of your paycheck should be automatically deposited into a savings account (preferably the separate savings account suggested in the money saving tip above). You should pretend as if the amount of your paycheck has been adjusted and that money that went off to the savings account never existed. Saving money is not always easy, but setting up a direct deposit to your savings account is simple.
Withdraw Your Spending Money Weekly in Cash
Spenders have become accustomed to swiping a card for everything, from fast food to movie tickets. The charges add up quickly. If you withdraw the money you wish to spend for the week in cash, you will instantly start saving money. Once the cash is gone, your spending money is gone, and you know you have to wait until the following week (or payday) to replenish your supply.
Plan Leisure Activities in Advance
The biggest place spenders fail when it comes to saving money is on leisure activities, such as eating out, going to the movies, and impromptu shopping trips. An excellent money saving tip is to plan leisure activities in advance, preferably one week at a time.
If you make plans to dine out on Wednesday evening, you will be more likely to decline politely when a friend calls you up on Tuesday to go out. Create a detailed plan and stick to it. Of all the saving tips, this one has the potential to reap the biggest rewards as leisure activities tend to negatively impact your savings account most significantly.
Saving money takes time and effort. You cannot expect to find six figures in your savings account overnight. These money saving tips are designed to be used in conjunction with a personal budget. A personal budget, along with these frugal saving tips, will help you and your bank account get started on the right foot toward success in managing your personal finances.