Trick or Treat Yourself into Saving
Let’s face it, we’re no strangers to tricking ourselves into doing the right thing. Putting your phone on the dresser across the room so you have to get out of bed to turn off your alarm is a mean trick on poor you. Sneaking kale into anything that will mask the bitter flavor is a healthy trick (for you and your family). Hiding the excess of Halloween candy so you will (hopefully) forget about it is a good one. Tricking yourself into saving money is no different and no less rewarding in the end. Here are the sneakiest ways to do it so you can save without the hassle.
Automate it, Hide It, and Divert it
Willpower is overrated. Set up automatic transfers, and you likely won’t miss the money when it’s moved from your paycheck to your retirement fund or from your checking account to savings.
Part two of the out-of-sight, out-of-mind approach is to make sure you’re not regularly reminded that you have this money. Set up savings accounts separate from the one that has your checking account, then you’re not seeing your savings balance every time you log on. Sign up for paperless statements for retirement accounts, and then don’t check them more than once or twice a year.
You can also divert money through small reductions in spending. For example, if you cancel a subscription, disconnect a service or pay off a debt, divert that monthly payment into savings.
Labeling an account with its purpose can be a powerful deterrent to tapping the money for other uses. Online banks allow you to set up multiple sub-accounts at no extra cost, and each one can be given a name: vacation, property taxes, new car fund, holidays and so on. The names make you think about what you’re really sacrificing when you spend the money thoughtlessly. You may not be able to rename your employer retirement fund, but you often can input nicknames for IRAs and other brokerage accounts.
Use an app
Digit analyzes your checking account transactions, then transfers money you won’t miss into a Digit savings account. Acorns does something similar but looks across all your accounts and invests the spare money.
Save your raise
Got a 3% raise? Boost your 401(k) or IRA contribution by at least 2%. You’ll get a little extra in your paycheck while putting most of your raise to work for your future.
Whatever plans you have to trick yourself into saving back a little money, let Allegius Credit Union be your partner in protecting and investing that savings. Learn more about the savings accounts we offer.