When I plan my budgets for an upcoming trip I have one rule that I think is imperative to the saving process. It involves spending money.Don’t worry I’m not about to convince you to part with large amounts of money to invest in some stock market (if you cant already tell that I don’t know anything about how to do that given lack of financial terminology). My trick is quite simple actually.
Too often when you are saving for a holiday things crop up out of the blue. It could be a birthday present you forgot you needed to buy or that dinner everyone you know is going to from work that you just can’t miss out. We’ve all come across these hurdles at some point. No matter how hard or fast you want to save you need to budget money you can waste each week. Each week I budget for my expenses, such as bills etc, and I put a set amount into savings, but I also allow myself usually $20-$50 per week that is mine to spend.
The reason why this method is effective is because I withdraw that money in cash that way you are physically able to see it disappear compared to constantly swiping your bank card. It works for me because I stay within my limit. If I buy lunch one day then all I have left to spend for the rest of the week is what is left in my wallet.
You may be thinking that the concept of wasting money to save money is a bit contradictory. But I know from personal experience that having a set amount each week means that something like the unexpected dinner is already taken care of. If you think about the amount of times you’ve reached into savings to buy that top you like or to buy your lunch because its two days before payday (we’ve all done it), then this may be a good trick for you. Also, it probably doesn’t need to be said, but you don’t have to spend it all in that week. If you have any leftover keep it aside it may come in handy when something more expensive comes up out of the blue like someone’s birthday party.
Be reasonable with how much you put aside for yourself. Something like $100 a week is probably a bit wasteful if you’re a university student living at home and only working part-time.
Do you have any budget tricks when you save? Let me know in the comments below 🙂