30 Jun
2010

We all have them: bad money habits that keep our emergency funds thin and our debts more robust than they should be. There are ways to out-sneak these bad money habits easily:

1) Make it harder to get at your money. Have your bank make it a little more inconvenient to get at your savings or buffer account money (for example, some banks can set up an account that does not offer online, phone, or ATM banking attached, so that you have to go into a branch to withdraw cash).

2) Make it automatic. Have your bank automatically withdraw a certain amount each month to your savings account. That way, you’ll be adding to your savings each month. If you haven’t been saving, you probably have lots of excuses – and no savings. If budgeting does not help, automatic withdrawals to your savings account are one of the sneakier ways to save.

3) Say no to one thing a day. If you constantly buy things you don’t need, make it a rule that you put back one item on every shopping trip. It’s an easy way to cut down on spending without really sacrificing much.

4) Add up the little things. If you have a hard time getting yourself motivated to save, consider doing the math. If you spend  $50 in restaurant meals a month,  your spend $6000 per decade on eating out. Imagine what else you could do with $6000.

5) Have your bank do the work. Your bank has all sorts of neat solutions to help you outwit your bad money habits.  There are also online banking resources to consider. Some banks will automatically alert you when you spend more than your pre-set limit, for example. Some banks will automatically round up your debit card purchases and invest the difference. Find out what products and services your bank offers and take advantage of them.