Tricks and tips for saving

zookzook melbourneMember Posts: 333
Hoping to find some clever things beside the normal 'make your coffee don't buy it' type idea's.

This week we have started trying a 'behaving' fund... IE when we think about buying that coffee/wine/smoothie/magazine etc, we don't, instead that amount we would of spent gets put to the side.

The idea being that in 1/3/6 months we can physically see the number growing and actually 'get' something for our efforts rather than the general and fairly uninspiring feeling of simply being frugal.
CallmeCat
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Comments

  • AngelineAngeline planting seedsCategory Moderator** Posts: 14,501
    One that you can see results pretty quickly is to not spend any dollar bills (or your equivalent) in your wallet. Buy something for 6$? The remaining $4 is now unspendable.  Pretty quickly you not only see the ones pile up, but you also resist spending that $6 because you don't want to create more ones.
    "Speak your truth." - Scarlet
    Remember to play!
    Do the right thing, whether anyone is watching or not.
    Be married, until you are not.

    Email address: angeline.greenwood@att.net
    LennyPurple
  • LennyLenny AustraliaMember Posts: 123
    Get a budget and put aside some money to just buy stuff with, but make it public,  I spent $5 on coffee and cake, use post it note or something visible.  Anything left over each week / month goes in the kitty.  You be amazed at how much you do not spend when it is out in the open. 
  • mrsthingmrsthing New YorkMember Posts: 258
    I love Dave Ramsey's approach.  At one point, we were putting cash into envelopes the way he suggests.  I don't really go in for all of the religious stuff he suggests, but the rest of his plan I do like.  Once we got out of debt, we continued to live below our means.  I will admit this is easier for us in a way b/c I make a great living and live in a low cost area, but most people I know who make a great living still spend more than they earn.  One of my closest friends makes probably 3x what I do and he is always broke - he bought a very expensive home, he has a 10K couch.  He's a keeping up with the Joneses type.

    When we prequalified for our mortgage for example, I requested more $$ than I planned to spend.  We qualify for a lot more than I planned to spend.  We didn't want too much house and we found something we love for less.

    One thing that helps me is to keep large bills in my wallet.  I'm less apt to spend money when it calls for breaking a hundred.

    Another thing I do is wait 24 hours before I buy something.  99% of the time, I don't care about said thing the next day, so I don't buy it.

    Having a goal also helps me.  Saving for a trip for example. A paid of mortgage as Dave Ramsey says, is the new BMW.  That's my next goal. 
    AngelinestillasamountainTennee
  • stillasamountainstillasamountain CT, USASilver Member Posts: 521
    edited September 19
    I like a KISS approach where all the thinking and most of the self discipline is taken out of my hands. To that end, "pay yourself first" is a common strategy and works pretty well. Especially these days with automatic fund transfers available. 

    Have a good portion of the money that would normally go towards discretionary spending periodically and automatically moved to special account that is flagged as untouchable in your mind. 

    You can always adjust as needed if you're moving too much out of the slush fund and things seem too spartan. Before making adjustments is a good time to reflect on how much you are spending and what you are spending it on. I think initially it's better to go aggressive in estimating how much you can safely move into the "vault".

    The takeaway here is that once you set it up all it needs is a periodic review / adjustment. And it's fairly painless. One final trick is that any raises, bonuses, windfalls, etc. get swept into the vault immediately, before you fantasize about all the toys you can purchase. :smile:

    “She was 3/4 perfection and 1/4 broken glass.”

    Friz
  • FrizFriz FloridaSilver Member Posts: 633
    I'm with @stillasamountain and it worked for me.
    Since I am an independent contractor in my field, no taxes are taken out of my pay.
    Every payday(once a month):
    30% goes in the  tax account. This untouchable until the year's taxes are completed and paid.
    20% of what's left goes into savings.
    The rest is what we live off of.

    The reward can be one or two things...
    If we are saving for something specific, it comes out of savings, we start another "savings fund".
    After taxes, we decide what to do with the leftover tax account.

    Doing this, we have found that there is less that we really "need". We enjoy watching our savings grow.
    TenneeHildaCorners
  • AngelineAngeline planting seedsCategory Moderator** Posts: 14,501
    I think this is what the OP is trying to solve, not how to save:
    The idea being that in 1/3/6 months we can physically see the number growing and actually 'get' something for our efforts rather than the general and fairly uninspiring feeling of simply being frugal.
    Which of you is it that needs to be encouraged by some tangible progress beyond numbers in the account - you or your wife? 
    "Speak your truth." - Scarlet
    Remember to play!
    Do the right thing, whether anyone is watching or not.
    Be married, until you are not.

    Email address: angeline.greenwood@att.net
  • HildaCornersHildaCorners Winter? You call *that* winter?Gold Women Posts: 3,377
    Dave Ramsey and the envelope system is good ... I personally love the web app You Need A Budget.

    The YNAB system is basically to allocate every dollar you have (not future earnings) to a budget category (you make up your own, and Savings can be one), then only spend what's in the category. If you run short, you can shuffle dollars as much as you like, but you have to shuffle, you can't just over spend a category.

    The goal is to have next month's money already in categories at the first of this month, e.g., on October 1st I already have November's rent/mortgage money in my accounts. This is a tough goal, and will take time to reach.

    For more info, you can read YNAB's extensive support documents ... many are useful no matter what system you use.

    NAYY ... I'm just a finance geek who loves YNAB and its system.

    Enneagram 5w4.  I'm researching what that means, before designing t-shirt art about it.

    "I feel no shame in making lavish use of the strongest muscles, namely male ones (but my own strongest muscle is dedicated to the service of men - noblesse oblige). I don't begrudge men one whit of their natural advantages as long as they respect mine. I am not an unhappy pseudomale; I am female and like it that way." RAH
    htx2008
  • AngelineAngeline planting seedsCategory Moderator** Posts: 14,501
    frillyfun said:
    I think your issue is expecting to "get" something for your savings.  You sound like money burns a hole in your pocket easily.  

    A collection of tips, and techniques isn't going to get you where you want to go.  You have to reevaluate your thinking, and what you want out of life.  

    Yes, this is exactly what I was driving at with my questions. Which if you is it that needs to be convinced that saving isn't a reward all on its own?
    "Speak your truth." - Scarlet
    Remember to play!
    Do the right thing, whether anyone is watching or not.
    Be married, until you are not.

    Email address: angeline.greenwood@att.net
    frillyfun
  • AklattleAklattle Silver Member Posts: 127
    Really good tips for saving in here. Wanted to mention  - another approach is trying to earn more. Perhaps negotiate for a raise.
  • frillyfunfrillyfun East PodunkGold Women Posts: 3,386
    edited September 20
    The biggest thing to keep in mind is that little purchases add up.  If you're thinking about that cup of coffee multiply that cost by 12, or 52, or even 365.  Buying a $3 cup of coffee once a week for a year is $156.  You probably wouldn't miss $3, but $156 is nothing to sneeze at, and that's just one out of probably a few hundred unnecessary things you buy.

    Another way of saving is to keep an eye out for DIY upgrades.  DS loves getting a bag of chips from the store up the street.  I make him popcorn instead, and he's happy.  We buy fancy popcorns to make at home, and a big bag of kernels is the same as a bag of chips.

    If you can work on substitutions like that it doesn't feel like a sacrifice.
    RorschachPurple
  • zookzook melbourneMember Posts: 333
    Angeline said:
    I think this is what the OP is trying to solve, not how to save:
    The idea being that in 1/3/6 months we can physically see the number growing and actually 'get' something for our efforts rather than the general and fairly uninspiring feeling of simply being frugal.
    Which of you is it that needs to be encouraged by some tangible progress beyond numbers in the account - you or your wife? 

    Both of us, we already do something very similar to the envelopes system. in that we put our savings away straight away, money in an account for bills. and money in an account for weekly groceries and fuel etc.

    You guys are good... From what you've said and a little self evaluation, we could save alot better if we didn't rely on those smaller dopamine hit's of 'things' It's not so much money burning a hole in our pockets. we have a reasonable savings account, are very close to debt free (until we purchase a house in 18 months time) this is as much a product of jobs that pay well as being ok at saving.

    Maybe our idea of a 'behaving' fund is still giving some of that hit which is why it feels like it might work? I still feel like I'm missing something critical.




  • MrGrimmMrGrimm Silver Member Posts: 971
    Just what @frillyfun said.  I'm frugal by nature, so I don't need tricks for me to save, but when I look at buying things, I always think of how much it would add up to (especially if it's a monthly expense) over the course of a year or a decade.  Spending another $30 a month to upgrade your cable doesn't sound like much, but $400 a year, or $4000 in ten years adds up to a new TV or a used car for your teenager.  Or better yet, invest that $400 a year, and you could make a big impact on your retirement savings.
    frillyfunstillasamountainHildaCornersRorschach
  • frillyfunfrillyfun East PodunkGold Women Posts: 3,386
    You're missing dopamine, seratonin, and adrenaline.  Retail therapy gives you all 3, so you need to find a replacement for that.  

    If you're buying a house that's a pretty big hit of virtual retail therapy between now, and then.  Keep busy planning a house, decorations, neat little features.  We watch home improvement shows, and research remodeling techniques.  It's dopamine, and we learn something in the process.

    It gives you a good reason to not buy shit because you're going to have to move it all soon.  Imagine being able to go into Ikea, and buying pretty much anything you want when you get your new house.  Or buying that $300 bucket of glitter floor epoxy for the basement.
    AngelinezookMrsJon
  • stillasamountainstillasamountain CT, USASilver Member Posts: 521
    edited September 20
    Flipping the script so that being frugal goes from boring to rewarding? I'm not sure what the best way is to do that.

    Personally, I just think about retiring early and comfortably. Or, I look around at some of the shit that I "had to have" and now I'm boxing it up and carting it off to the Salvation Army. Do that a few times and it starts to sink in.

    I think the best way would be to read some financially inspirational stuff. About 20 years ago I read Your Money or Your Life by Joe Dominguez. Changed my life. So many key concepts in there.

    • Money = Life Energy (and both are ultimately limited).
    • Making a Living or Making a Dying?
    • Gazingus Pins.
    • Think Before You Spend.
    • The Hidden Costs of Luxuries.
    • Enough is Enough (the Fulfillment Curve).

    Or (as mentioned by others) maybe Ramsey or Mr. Money Mustache would resonate better for you? Regardless, there are undoubtedly a ton of resources out there on how to reframe your thinking around saving for the future.

    Here's a review by MMM on YMOYL: http://www.mrmoneymustache.com/2012/12/18/your-money-or-your-life/
    Clutter.jpg
    885 x 1199 - 28K

    “She was 3/4 perfection and 1/4 broken glass.”

    zookHildaCornersMrsJon
  • zookzook melbourneMember Posts: 333
    @frillyfun - when I see a house I just see work... Perils of being a tradey and helpfull. I do enjoy it though. House purchase is purely a future financial thing. I don't want myself or my family having to rely on government housing when we no longer work. @stillasamountain - appreciate the books. I think that's going to help alot. Upon recomendation from my cousin who's well off and one of those naturally motivational guys I'm reading rich dad poor dad already.
    frillyfun
  • zookzook melbourneMember Posts: 333
    Stupid phone and formatting issues. Sorry all.
  • stillasamountainstillasamountain CT, USASilver Member Posts: 521
    Rich Dad, Poor Dad is pretty good too. Debt is Slavery is another one.

    I think you just need to do some reading until you find someone whose message resonates enough for it to help encourage frugality and/or frame it differently. The flip side is what you were originally looking for I think... a system that is "fun" enough to be it's own reward. I don't have any ideas about that, unfortunately.

    What about this? A graph that tracks monthly expenses vs. investment income. Over time expenses (hopefully) drop and passive income (again hopefully) increases. The intersection point of the two graph lines is financial independence. Or some close approximation thereof. It's a visual record / feedback device of progress towards a pretty significant, albeit distant, reward. 

    “She was 3/4 perfection and 1/4 broken glass.”

    Angelinezook
  • HildaCornersHildaCorners Winter? You call *that* winter?Gold Women Posts: 3,377
    Budgeting and expense tracking *can* include some retail therapy. The key is to not spend more than you budgeted, and make sure you are keeping your other budget categories fat and happy.

    So, if you're debt free, have your emergency fund, hare ahead of schedule on saving for college and retirement, and still have $100 ... go ahead and stop by Starbucks on your way to work every morning. As long as you really enjoy that latte, that is. :)

    But you don't buy that latte if you have car payments, and are still paying off the bills from last winter's vacation, and have no savings.

    The key is keeping track, knowing where you are and what your financial goals are, and making sure you are meeting them.

    Enneagram 5w4.  I'm researching what that means, before designing t-shirt art about it.

    "I feel no shame in making lavish use of the strongest muscles, namely male ones (but my own strongest muscle is dedicated to the service of men - noblesse oblige). I don't begrudge men one whit of their natural advantages as long as they respect mine. I am not an unhappy pseudomale; I am female and like it that way." RAH
  • htx2008htx2008 Silver Member Posts: 24
    edited October 12
    One final trick is that any raises, bonuses, windfalls, etc. get swept into the vault immediately, before you fantasize about all the toys you can purchase. :smile:
    Largely agree here, but one thing I've found very helpful for bonuses is to set aside part of the lump sum (ideally no more than 10-15% range) to treat yourself to something, then sock the rest away in savings. You'll feel very happy because you get the satisfaction of treating yourself while also saving money.

    HildaCorners is spot-on about YNAB. Simple to use and great for budgeting... I've used it for the past 6 months and love it. 
    HildaCorners
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