When I was 12, I’d diligently slot a $2 note into my piggy bank every day after coming home from school.
In just over ten months, I managed to accumulate an amount enough to buy myself a portable gaming handset of the PlayStation (also known as ‘PSP’) worth $450.
This old-fashioned way of saving isn’t something new. Nonetheless, its underlying concept is an effective — apart from investments — no-spending strategy to make your money add up.
Saving as a millennial can be challenging given the additional responsibilities we have, such as paying off our student loans, saving up for our ideal house, supporting our daily expenditures, and more.
Cool Ways to Save
In hindsight, saving money can seem daunting and often viewed as a long process with delayed returns.
Ahead are some of the saving strategies I experimented with that worked well for me as a student in keeping my cash flow in check.
1. Keep Two Bank Accounts
I have a spending account meant for my meal and public transportation fares as well as miscellaneous spendings like clothes, skincare products, video games, and more.
On the other hand, I keep a savings account where I’d deposit 40% of my monthly allowance here before allocating the rest as my spending amount. An important point to note is that spending comes after saving and not the other way around.
Keeping two separate bank accounts helps to prevent me from exhausting all my allowance at once.
2. Save at a Specific Denomination Consistently
Pick any denomination that you’re comfortable with based on your spending power. It could be $5, $10 or $100. Be consistent in your savings and never miss a day.
Put them in a jar or deposit in your savings account. This jar can also become your rainy day fund or ‘fun’ money. Whenever you require an emergency fund or to splurge on a fun night out — occasionally — , you’re able to tap on this reserve to spend on what you need.
3. Eliminate Things That You Don’t Need to Spend On
Every month, I’d review my monthly bank statements — or keep track of your finances in a notebook detailing your monthly savings and expenditures — to sieve out items I’ve been unnecessarily overspending on.
As a cashless person, the act of ‘payWave-ing’ every single purchase can become a financial blind spot because of the tendency to splurge without seeing my bank balance going down.
Filtering what I need and what I don’t need saves me a great deal from being broke before the end of the month. Some of the things that I stopped overspending on (which may also be relatable to you) include:
- Media subscriptions
- Cab fares
- Expensive dine-out meals
4. Visualise the Way You Save
Make a vision board of your saving progress. Each time I save, I’ll put a checkmark, and it has been one of my greatest motivators in sustaining my saving streak instead of breaking it.
There are gamified savings apps that chart your daily expenditure and savings goal on the go.
Having a vision board can also include things such as the holidays that you want to take. Seeing Paris every day makes me think twice about spending on a $20 dinner.
5. Make Full Use of Discounts and Promotions
Period. This is the only time where crazy deals happen, and most retailers hold mega sales from time to time. Do yourself a favour and check on the website or store assistants for any promotion before paying your items.
What’s a better way to enjoy the same product at a 20% discount, right?
What are other savings strategies that you’ve successfully adopt to help you save more money? Be sure to share them in the comment section!
Thank you for reading!