Wednesday, November 18, 2009

Extra cash

((I am not selling anything contrary to my info-mercial tone))
ever wondered how it is possible to give attention to every outstanding bill, have money to have a nice dinner with friends AND save money? yeah, me too. If you're anything like me, you have a bit of extra money in your account every month, and have no idea what to do with it. Do you put it towards debt? save it? spend it? (guilty). Most people see that they have $70ish extra laying in their account and feel the need to put it back to its normal territory, 0, nada, zip, gone.

I wanted to pass along my method of saving-since my dear friend assured me that it was a good idea. The method is simple....almost too simple....and i may even be stating the obvious. Just hear me out.

Its proven-if the money is sitting in your account without direction, it will be spent. It could be spent on things that are responsible such as saving or debt payoff, but the point is, it will be spent. My emphasis is on the saving part. I'm a budget nerd.

I'm sure you have some of these lying around. If not, pick up a pack at the good ole' Dollar Tree.



Write down your saving goals.
paying off a credit card?
cool vacation?
Christmas?
WEDDING?!

Choose a realistic amount of envelopes-three at the max. Don't want to get all craaaaazy. (unless you're super saver)
designate the envelopes with the name of your goal of choice.



Whenever you have some extra cash, just stash it. Disperse your 34 extra dollars into all three envelopes or give 'credit card' all $34. that lucky envelope. Try not to take from it (or count it-kelly) and slowly watch the money pile up.



This is the most important step of the process. hide the envelopes from plain view.



(If you save $5 a week until Christmas next year you could have about $275!)

2 comments:

  1. I think I might actually take your advice and do this. I'm trying to save up for the Canon 5D mark II .. and I seem to keep spending the money I earn .. so this is a great idea! Thanks :)

    ReplyDelete
  2. HA! I so used to do this all of my growing-up years. It does work; I struggled with the no-counting thing.

    ReplyDelete

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