Secrets of Sneaky Savers

Self-discipline is tough. You can stick to a plan for three weeks, make one mistake on a sudden impulse and wipe out all of your hard work in one fell stroke. This cycle of discipline and failure can cause many to give up trying to save money. But if you think of that part of you that slips up as a separate person that needs to be fooled into saving, you can manage even the most stubborn spending streak. You may recognize some of these tips. They are tricks you use in your diet, at home to stay on schedule and to meet everyday goals. 

Let Yourself Be Bad 

The way to deal with the vexing side of your personality that gives in to temptation is to give yourself a little wiggle room. Let your impulsive side loose once a week so that you do not go overboard and damage the gains you made during more disciplined times. Dieters use this trick to help them stay on their diets and you can use it to stay on budget. Instead of sticking to the menu plan every day of the week all month long, smart dieters give themselves one treat per week, or one day per week when the normal rules don’t apply. This lets them have the cheeseburger they craved all week. This is much better than going three weeks without making a mistake and then splurging on five cheeseburgers at once. 

You use the same trick with your finances by budgeting in a little wasteful spending. Put away a few dollars in an envelope each day and hang on to it until Friday. Then, go out shopping and allow yourself to buy one indulgent item for yourself. Maybe you won’t have enough in your envelope to pay for anything great that week, but after two weeks, you might. You may even save those extra few dollars up and treat yourself to a spa day at the end of the month. The point is that you will not be pulling money out of your normal budget to buy something nice. You’ll have money set aside just for that purpose, preventing you from stealing from the savings fund. 

Delay Tactics 

Fashion emergencies, or sudden urges to buy something nice for yourself can be handled by instituting a three-day waiting period for any purchase outside of your budget. This means that you are not saying “no” to that beautiful handbag, you are just saying, “not for another few days.” Chances are that the urge will pass before you ever get back to that bag. This is the equivalent of placing the alarm clock across the room so you have to get out of bed to turn it off. You’re less likely to get up if you can just reach over and hit to snooze button and you’re more likely to spend if you give yourself easy access to your money. 

Symbolism in Goal Setting 

Finding ways to channel your desires can really boost your savings potential. Set up an online account for you and label it with the goal you have in mind. You may set up an account labeled, “A Home of My Own” or “New Car.” This simple trick urges you to eek just a few more dollars into that account every chance you get. You’ll think twice before buying an impulse item and consider instead adding the cost of the item to your fund. A similar approach involved applying symbolism to your savings. If you are looking to buy a new car in 2012, set aside $120 each week. You’ll be able to buy a new car outright with no loan and no interest to pay. These methods are similar to putting a picture of your goal on the refrigerator so you see it every day and are constantly reminded why you work so hard to stay disciplined. 

Small Change 

Small changes can add up big and so can small change. Every time you write a check or make a payment with your debit card, round up to the next dollar on the entry in your checkbook. When you balance your account at the end of the month, take the extra money and put it in your savings. If you pay for every purchase you make with debit, you could end up with a lot of extra money to put away in your savings each month. You may have noticed that some banks offer accounts that do this for you automatically. 

Compete with Yourself 

You can also challenge yourself if you like competition. Play the dollar game and set aside every dollar bill that makes it into your wallet. Never spend a one-dollar bill and you may find 100 of them in your wallet at the end of the week. Put those George Washingtons into your savings account every month.  

Go for Broke (not!) 

Of course, you could always take the most straightforward method: schedule an automatic 10% distribution from your direct deposit paycheck to your savings account each week. As long as you never touch that savings account for spending, you will never fail to save a healthy 10% of your income. This method can feel like diving off a cliff for some people, but it’s highly effective. If you can’t rely on yourself to be disciplined, you may have to force the matter with an automatic distribution.

Jessica Bosari is an Internet copywriter and blogger for various publications and her own blog. You can read more of Jessica's work here.