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How to Save More Without Making More

7214454962_e2050bb2c3_mHere’s a pretty neat strategy that you can try if you’re looking to save a bit more for retirement, college or even paying down debt. It works like this:

Whenever we’re out shopping or online shopping there’s always the temptation to purchase things we really don’t need. For example, I was at the store the other day and tried on a few pairs of jeans. Did I really need them? No. Did I want them? Of course. You may have seen yourself in a similar situation – wanting something but knowing you most likely didn’t really need it.

Here’s the fun part. Since you were planning on potentially spending the money for something you didn’t need why not buy something anyway – something you do need – such as retirement, college saving, paying down debt or building your emergency fund. The process to do so is quite simple.

Chances are you have access to your bank accounts online or through your smartphone and the odds are good that you have your bills, retirement accounts, educations accounts, etc. set up online through your bank as well. The second you realize that you really don’t need to buy the item you were contemplating, take the price of the item and what you would have paid and have that money applied to your retirement, college, debt or emergency fund. Simply go on your computer or smartphone open your bank’s app and send the money that you would have spent to the appropriate account.

The good news is that you were contemplating spending the money anyway and even better is that now you’ve spend the money on a need rather than a want that will gradually fade away.

Try this the next time you’re shopping for wants rather than needs. It’s amazing how much those small contributions will add up in your favor, rather than subtracting from a later goal.

 

One Comment

  1. AnneNo Gravatar says:

    Hi sraskie: I like your idea; pay yourself for the future instead of paying yourself now; for example: I buy Gift Cards when I get “small cash” from my Funds; then I use the “envelope” method of filing my Gift Cards; as JB suggests; this way I am not tempted to buy a Latte for $5 I do not need; and I put the $5 for “Pet Supplies”!
    I mean who is more important anyway; my Latte’s needs; or “Kitty’s feed supplies”?
    ($5 X 30 = $150 which is my monthly savings on the Latte’s alone!!!) Thanks! AR@

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