10 Sneaky Ways to Save Money

There is no time like right now to take a good hard look at your personal finances and make saving money a goal. The following sneaky little tips and tricks can help you get past that mental hurdle that stops you from growing your savings by helping you avoid the negative emotions associated with saving money. Whether its tricking yourself into spending avoidance or getting little extra bang for your buck, the emotional boost that you get when savings starts to grow makes saving money easier to stay with. 

Starting a Savings Account

Watch for promotional events at your local bank and start a savings account when they are offering incentives like matching some of your initial deposit. The days of $100 deposit matches are probably over because banks can't squeeze you for as many fees. But any match you can get is free money and that always feels good!

Out of Sight, Out of Mind

When you set up automatic savings, you never miss the money. It's gone before you ever see it. Start by setting up a small automatic withdrawal in to your savings account, using an amount you know you can live without, even if that's just $10. When you get used to going without the money, dip your toes into the savings pool a little further by bumping up the amount another $5. When the money never passes through your hands, it's like watching your savings magically grow on its own. Remember that this savings account is off limits. Some people use online-only accounts to make the money more difficult to access.

Use Certificates of Deposit

Opening a certificate of deposit or CD is a great way to set aside some money that you know you won’t need immediately. Interest rates are higher than a traditional savings account so the money will grow more rapidly. This is not a good idea for an emergency fund as there are penalties for withdrawing before maturity. But as a long-term savings vehicle, a CD ensures your money keeps pace with inflation. Do this as soon as you have saved enough for a CD. When adjusted for inflation, money actually loses value when sitting in a savings account long-term.

Save with a Purpose

Whether it is a house of your own or a vacation of a lifetime, saving with a purpose helps you get to your goal faster. Remind yourself what that savings is for. Keep a picture of your vacation destination in the passbook or on the refrigerator so you don’t forget why you are saving. Imaging yourself in a home all your own, actually see yourself living there and going about your daily activities. The more you can imagine it, the stronger your desire to save for it will become. 

Hiding Money in Your Checking Account

An old but effective way to build invisible money is to always round up debits from your checking account. If you spend $17.23, round it up to $18. Likewise, round down deposits. With a deposit of $632, record it as $600. Once you reach a certain amount of invisible money, transfer it to your savings.

Keep the Minimum in Your Checking Account

Just keep what you need to pay bills in your checking account. Transfer any extra to a savings. Money in a checking account is easier to spend than money in a savings account. It's another sneaky little way you can trick yourself into saving.

Working With Cash

Use your checking account for bills but buy everything else with cash. There is something about paying with cash that makes it psychologically harder to spend than writing a check or paying with a credit card. It is difficult to give up hard earned income especially when you have it in your hand in the form of physical money. The lesson here is to carry cash. The larger the bills, the harder they are to spend. Who doesn’t hesitate to pull out a one-dollar bill and spend it? But breaking a twenty for that same cheap item is much more difficult to do.

Time for a Change

Start a change jar and throw in all your change. Try adding every one-dollar bill or even every five-dollar bill you encounter. Watch how quickly your savings grows. Set a specific amount and when you reach it, take the money to the bank and deposit it into a savings account. It may be hard to start a new habit, but once you see your savings grow you will want to keep right on stashing and saving.

Savings Support Groups

Encouragement is what you will get if you join or start a savings support group. Share ideas for saving, get excited about the process, and help each other achieve success. The emotional support and encouragement may just feel good enough to keep you on the right track.

Reward Yourself

Make deals with yourself and give yourself a reward for reaching your goals. Strike a bargain that after every $200 saved you will buy a pizza dinner or some other small reward. This keeps you going and keeps the whole process from being a drag.

What other sneaky ways do you use to trick yourself into saving?