There are many people that neglect to save for a rainy day because saving their money is not as exciting and doesn’t create the same euphoria that spending the money on new items creates. In order to generate enthusiasm for saving money, you may want to try some creative saving methods that anyone can use to save money in a quick and painless way. Here are some of the most commonly used creative saving methods.
Bundling Bills
This saving method brings to mind the old practice of saving all of your spare change in a jar, just on a grander scale. With the bundling bills method, every time a certain unit of currency crosses your hand, such as a $5 or $10 bill, that bill is not spent and is placed into a jar or bank to be saved for a rainy day. This helps accumulate savings much more quickly than the spare change method and the saved money can be deposited into your savings account once or twice per year.
Account Padding
Account padding is a great way to save without having to put much effort into it. The account padding method works best when the person uses a checking ledger or personal finance software to keep track of their spending. Once a month, “write” yourself a check for a particular amount of money in your ledger and deduct that money from the balance of the account without removing the money from the account. This effectively hides the funds from you, reducing the chance that the money will be spent and adding a cushion to the account to prevent accidental overdrafts.
Personal Fun Tax
Another great way to save money on a regular basis is to charge yourself a personal fun tax whenever you spend money on non-essential purchases. The easiest way to use this method is to charge yourself a 10% tax on the total price of the purchase, whether it is movie tickets, dining out, or purchasing concert tickets, and immediately pay that money into your savings account. You will be amazed at the reduction in your spending when you have to think about effectively paying 10% more for the item and will be astounded to see how fast the balance of your savings account grows when you use this saving method.
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