Bryan Fleming has an interesting suggestion for disciplining yourself to save money. I was a bit taken a back at first, but after he gave his rationale, it actually made a lot of sense, and I realized I've done it in the past without realizing its effectiveness.
Basically, he says - this is my interpretation of his post, plus my own interwoven commentary - that the key to learning to save money is actually saving money. Hard currency. And somewhere you can see it.
He's not saying that you should keep all of your money in a sock. Rather, he's saying that if start keeping, say, 10% of what you earn in actual currency, in a place where you can see it each day, it'll have a positive effect on you. When the money starts to build up to a sizeable amount, you can move it to a bank account.
I agree with Bryan. Seeing actual, real, tangible currency is far more effective in motivating you to save than something as intangible as a bank balance on a piece of paper. Let some of the money you earn actual flow through your fingers once in a while, and you're likely to start saving some of it.
This is something that is good for the hard-of-saving. I've employed this method in the past, with good effect. My father used to save his day's change in a jar for me when I was all of about 6. A jar full of coin and paper currency just has this amazing effect, and I've kept many jars of coins over time.
It's not the same as keeping it in a piggy bank. Mine's a custom made ceramic 1961-model black convertible Corvette, given to me as a birthday gift years ago, but I don't use it anymore. You have to be able to actually see the money, see the fruit of your savings. I say put your money in a place where you might see it everyday, and in a clear jar. When you don't see it, you won't be tempted to spend it, but you won't forget about it either.
It's maybe not a coincidence, then, that financial problems became much more widespread in North America when people started using ATM cards and credit cards on a daily basis. Some people say they don't use cash at all. I'd be interested to know if they're good at saving or not. I'm sure there are some, but I'm hypothesizing that people who have trouble saving do so because of regular use of banking cards rather than cash.
Give Bryan's suggestions a try. Some people say it takes 21 days to form a habit, good or bad. I've also heard it's 30 days, but no matter. If you can develop a habit for saving, it'll stand you in good stead. And when you have a sufficient balance of cold, hard cash, find a nice online savings account and deposit your money so you earn some interest.
Did you enjoy this post?
