Jun 17, 2020 / Money Tips
Is there anything more fun than spending money? Vacations, home improvements, shopping sprees, fancy restaurants—there’s an undeniable thrill to experiencing something new. But in order to spend money, you have to save money first. If only it was just as fun. Here are three creative money saving tips to help you prepare for your next purchase.
In every job there’s an element of fun. And saving money is no exception. Challenge yourself to increase your savings by a set amount every month. Or, implement a friendly low-stakes savings competition with family members or friends. You could even incentivize saving with a reward for saving the most money in each of your budget categories. Whoever spends the least amount on food, for example, gets treated to an all-expenses paid meal of their choosing. When saving money becomes a game, you’re more motivated to make it a consistent part of your life.
When you can clearly see your destination, the journey becomes much easier to endure. Start a dedicated savings account to save up for a vacation, new home, new car, or other expense. You could even consider opening a money market account to earn higher interest and separate your savings from your normal expenditures. That way, you avoid the temptation of dipping into savings for anything it’s not intended for. When your efforts lead up to something you really want, savings becomes exciting and the anticipation fuels motivation.
For some, numbers in and of themselves are exciting. It’s rewarding to see the numbers in your bank account continue to grow. If this describes you in any way, try tracking your net worth as motivation for saving money. Start by listing your assets, including your accounts, the equity in your home and car, your personal property, investments, etc. Then list your liabilities—the money you owe, and subtract your liabilities from your assets to determine your net worth. Now, continue to make regular payments on your liabilities, try to increase your savings, and track your progress over time.
When saving money becomes just as fun as spending money, you’re more motivated to build wealth and reach your savings goals. And it makes spending your money that much sweeter too.