I’ve recently set a savings goal for myself. I’ve been funneling most of my extra money into paying off my student loans, but I’ve decided to shift focus on that just a little to build up my rainy day/vacation/project fund up a bit. Trying to get $ 5,000.00 of extra money in the bank, even for a penny pincher like me, can be a little daunting. I’ve found that the best way to reach any goal, whether its going to the gym (which I’ve been pretty naughty about lately) or saving for retirement is to set realistic goals.
My tip for the day is to make a cheat sheet. I went into Excel and created a little sheet that shows if I save $X.xx each day, how long it will take me to reach my goal. I’ve done several breakdowns on the sheet (36 months, 24 months and so on) to show just how much on a daily basis I’ll have to cut out in order to reach my savings goal. I took this little sheet and slipped it into my wallet OVER my check card. That way I will have to go through that worksheet in order to get to my spending money. Is that fab dress on sale at Marshalls worth dipping into my potential nest egg? Sometimes the answer might be yes, and that’s ok! I honestly believe that in order to be on any kind of diet, financial or otherwise, one cannot totally eliminate the things you really enjoy. I have an addiction to art deco and vintage style clothing. If I can wear pearls with it, if it has a high waist, or could at any point be paired with pin curls, I’m hooked. I’m an absolute sucker for anything peep toe, and I don’t plan on eliminating these types of purchases from my life. However, keeping a very visual reminder of what my goals are per day has been a great help in making the final decision on non-essential buying.
What helps you keep your play money in your purse?
2 comments:
I find that extracting cash from the ATM makes me much more reluctant to spend it. There's something to be said for the visual transfer of funds - the concreteness of it drives home the fact that you're spending money.
Rebecca:
1. Post more. This is hilarious and brilliant. I can hear your voice in my head when I read it.
2. I am also obsessive compulsive and a bit "frugal." I have my budget broken down into how much money I can spend each day after all of my obligations and savings goals are met. (I subtract EVERYTHING, bills, groceries, and savings from my monthly income and divide the rest by the number of days in the month). I withdraw the amount of "spending money" I get for the month from the ATM and put it in a cute little book with envelope pockets as pages. This amount might only be $10 or $12 a day, but each day that I don't spend it all, I move the leftover money to the next day's envelope. At the end of the month, the money I have left I use to treat myself. It's a great way to reward yourself for being thrifty after your savings goals are met! Some months, if I don't find anything, I add that money to my savings, too! It's like saving to buy cute stuff after you saved for vacations, rainy days, and emergencies! It's a great incentive!
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