A simple way to put aside more cash

Don't carry big wads of cash around unless you're one of these 'guys'.

Don’t carry big wads of cash around unless you’re one of these ‘guys’.

Way before there were bank ATM cards and credit cards, most people had a savings account and a checking account. They wrote checks for purchases, sometimes post dating them until there was enough money in the account to clear it.

Times have changed drastically since then. Now most people don’t even carry around cash in the pockets, opting instead to put most purchases on the bank ATM card with the option to post the transaction as a credit charge. (Which you should always do if using bank ATM cards; never use the debit option which requires entering your PIN code or you will open yourself up to incidents of fraud with people stealing and copying the data on machines designed to do that.)

Also, people today save less money then two generations ago, mainly because of the ease in which impulse buys can be made. It is said that a majority of people save only 2% of their income- and that’s not even including debt they may owe. ( Don’t carry debt.)

One thing my grandfather had told me at a young age was a simple process in which you can save more of your hard earned money if you have impulse buying issues.

Have you ever heard the question asked, ‘Which would you work harder at-saving ten thousand dollars or preventing someone from stealing ten thousand dollars?’

Using this as an example of the psychological nature of people when it comes to money, the plan is simply this-

Deposit your income checks into your savings account and then as you have expenses throughout the weeks or month, transfer these small amounts over to your bank card (or credit card if you use that instead) to cover them.

This does two things- it makes you aware of what you are spending on a daily basis and lets you monitor your impulse buys and adjust accordingly AND the pain of having to withdraw small amounts to cover expenses and seeing that balance in your savings account go down will inspire you to really take control of your impulse to just consume and buy every time you feel like it.

You will obviously need a small roll in your checking account to cover initial and pretty common expenses like gas, groceries, coffees, the occasional wine or beer purchase, etc. If your single, it needn’t be much- 300 to 500 depending where you live whether it’s NY or Houston. You can figure out how much you really need to stay alive and enjoy life a little.

And as the balance dwindles, this is where you get to really control what you spend after that. Going to movies, dinner with whomever asks and impulse buying clothes (when you already have more than enough) all add up during the month.

You’ll find that you will save more cash this way then just depositing your payroll into a checking account and then making a mental note as the the number your account balance needs to be at so as not to bounce your checks. We are so distant from the concept of money as cold hard cash, that it has almost become an abstract figure; a sequence of numbers that mean little to us.

You can always do the old school method of cashing your checks and walking around with a big wad of $100’s. The pain of peeling those away for purchases may make you re-consider your purchases. Unless you can handle two guys jumping you and have lightening fast crush & destroy fight tactics to get away fast, I wouldn’t really recommend option two.

Unless you’re an Italian from the Bronx.

5 comments on “A simple way to put aside more cash

  1. Pingback: A simple way to put aside more cash | Manosphere.com

  2. I’ve found a way to slowly, slowly build up cash using what I call “Trickle Deposits.”
    It’s stupidly simple, but I’ve found it effective.
    1) pick a community within your state that is as far away and as painful as possible to get to.
    2) Find a local community bank/credit union there that doesn’t have branches anywhere near your home
    3) open a savings or CD account with automatic deductions from your paycheck/checking account etc
    4) make the regularly scheduled deductions the absolute minimum. Many banks accept amounts as low as $25.
    5) under no circumstances should you link an ATM/credit card to the account. Leave it be.

    Over time you won’t miss the small amount and depending on the frequency of the deposits, the savings can appreciate.
    I love vacationing on Cape Cod and knew I’d return there on a regular basis. Years ago I did the above steps with a local bank on the Cape. Now it’s built up to the high 4-figures and I have an emergency fund while I’m on vacation and the money is near untouchable the remainder of the year.
    Yes, yes the money is earning absolute crap for interest in a simple savings account; but I wanted a cash stash and my investments in my brokerage accounts do all of the heavy lifting for my capital gains and dividend income.
    Just a thought, keep the faith, cheers!

    • That’s a clever way to sock some cash away. You never have to worry about cooking up some Main lobsters and washing it down with a good local brew! Thanks for sharing. Cheers.

  3. I’ve been doing this since I was in undergrad. I had a savings and checking account set up prior to me getting my first job and my mom advised me on the exact same things that you’ve said in regards to having my paychecks automatically deposited into my savings and only withdrawing to checking what was necessary for the week, month, etc.

    My bank has a policy that limits the amount of money I’m able to withdraw from my savings account within the space of a month before severe penalties are enacted, so it further encourages me to make reasonable assumptions for that month’s expenses that prevent me from withdrawing nonstop. And like you said, monthly expenses aren’t all that high. I’m able to make it on around $200-250, sometimes less, barring something unexpected or a planned major expense.

    It’s good to see this kind of financial advice being shared and discussed. Great article.

    • Thank you for sharing your story. It’s good to see other people who ‘get’ that fiscal responsibility can be achieved with a little forethought.

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