How Much Are You Saving?

I saw an article on MSN.com called "Secrets of Successful Savers" by MP Dunleavy. I think this is one of my new favorite articles. I wish I would have read this about 12 years ago, then maybe I would have a much larger nest egg. Saving money was just something my dad lectured me about everyday (like he had room to talk), not something I actually did back then.

In this article, Dunleavy gives a lot of tips and some good analogies from experts in Psychology. She starts off with a good line "...sometimes it can seem as if the universe is conspiring against you". I find this totally true. Inevitably, every time I get a windfall, my car needs new brakes or our water heater breaks or something happens that prevents me from putting that money in savings.

"Socking away money is tricky...for the same reason that diets often fail. The brain resists sacrificing immediate pleasures (eating, spending) for abstract, far-off goals, such as looking cute in a swimsuit or having money in the bank for a rainy day." Since I am currently doing both, Spring dieting and trying to save as much money as possible, this is definitely something that I can relate to. Especially when I want to buy all this tempting Easter candy that has been on sale the past week.

Then the article goes into saving tips, like Automatic transfers and direct deposit into a savings account. I currently direct deposit the same amount from each pay check into my savings account and 4 times a month I transfer money into my two online savings accounts. This is the easiest way I can think of to save. I usually round all debits from my checking account up to the next $10 mark so that when the automatic transfers occur, I don't even notice the decline in my checking balance. I just reconcile the account when the monthly statement comes. Another tip from the article was to get a savings account at a bank that is in an inconvenient location so that you aren't tempted to make a withdrawal every time you pass the bank.

Some other tips are to put a meaning behind why you are saving. If you are saving money just to save money, you are less likely to actually save. I have named my online savings accounts "Sam's college fund" and "Our future". That definitely gets me motivated to keep saving and keeps me from making any unnecessary withdrawals. The last section of the article is about "Keeping Up the Momentum". Dunleavy suggests that you act fast, explaining that when you are feeling inspired to save money, do it immediately because inspiration is usually temporary. Next, get support, whether it is friends, family, spouses, sisters... It is always easier to do something when you have people encouraging you to stick with it. This next tip is a good one, but one I could never keep up with. The article says to "Save your savings". "...many people confused discounts on merchandise (e.g., "My coat was 50% off) with saving actual money. Instead focus on saving your savings. If your grocery receipt says you saved $7.49, go home and put that money aside." Since I save a lot of money every month with sales and coupons, I just stick to my automatic transfers.

The last tip is something I had to do with this months spending freeze. Make a list of the stores, websites, products or activities that make you spend money you don't want to spend. My list was to stay away from Borders and Kohls, stay off of Amazon.com and not to buy anymore clothes for my DS, DH, or myself. A quote from the article "Self-control is tiring. Arranging your life so that you confront fewer temptations is a wise thing altogether."