Owe it to Savings

If one of your New Year's Resolutions was to save more money this year, you may be wondering how you're going to stretch your money far enough to do it.

Sometimes, mind games work very well, so here you go:

Treat your savings account as if it were a debt. Whatever savings goal you want to meet is the amount you "owe."

Do whatever you have to do to keep your mind working that way. Make up a pad of payment coupons, or make a spot for it in your list of bills or write a note to yourself every month, reminding you that a payment is due. Put it in your budget.



Then follow through, no matter what. If something happens and you need extra money, find another way to get it, but make that payment to the savings account.

If you have to buy another car or something breaks down and you have to use the credit card or borrow money otherwise, you will have to make payments... so why not make them to yourself?

The best thing about building a savings account this way is that we get to set the payment amount. (No changing it after, though, barring a serious change in finances). Whatever your goal for the year is, divide it by 12 for months or 52 for weeks and that's the payment you should be making.

A little bonus is that you'll actually have more than you saved in a year because of the interest gained.