I’m no finance guru but having good finance control makes it easier to buy the things you want without going broke too often 🙂 The best way I know of is to separate your funds into different bank accounts.
So most of you know I love my bags and yes I do spend lots of money on them. But what you might not know is that I’ve already saved up that money so I don’t quite eat into my retirement fund nor do I feel the pinch that badly when the time comes to swipe the credit card.
What I do is keep a separate bank account for such expenses. Whenever I have extra money, I set it aside aside in this separate bank account. This is also true if I’m saving up for something big. Small bits of savings can add up over time and its a lot faster than you think 🙂
When the time comes that I see something I like, I have a ready fund to draw from and I don’t touch my other savings for more serious stuff.
This is easily applied too for anything you want to buy but feel you cannot afford it quite just yet. Set up a separate bank account and save up for it. Opening a savings account is quite easy and with online banking these days, its easy to keep track of your accounts and your money.
It also makes it easier to save when you keep your funds separate and you might just surprise yourself at how much you can save if you just put your mind to it! With blogs and the world getting smaller these days, we know of limited edition releases way ahead of their time, so you do have about 2 months to save up for something you might like before it is released here. I’ve already saved up for the Guerlain Cherry Blossom blush – which I learnt of way back in November 2009 and am now just waiting for it to be released! 😀
Incidentally, having a bit of savings tucked away can help you during a rainy day too. Having to repair a broken down car is less painful on the wallet when you have a bit of savings to draw from 🙂
Do you keep a separate account for your savings too? Do you enjoy reading finance or money saving tips? I’m always trying to find ways to get better financial control or save money so if I come across tips I’d be sure to share.
Paris B
i have separate accounts, but they always go inactive >__<
wat i do is i keep track of my spending, record everything so i know my money in and out every month. it's a hassle but it's good for me that i know what i have "in stock" and don't overbuy it! so i still have savings! LOL
I used to track my spending too but then I realised I might as well save up for something I like so I don’t have to be bogged down by the nitty gritty 🙂
i too have another separate acc for savings…but sometimes i have to touch the savings acc to cover emergency situation 🙁 and sometimes no $ to put into the savings acc every month. *bangs head to wall*
But that’s what savings are for! To cover emergencies (so you don’t end up broke) 😉 I’ve eaten into my savings countless times for things like car repairs 😛
hehe..me too, have 3 accounts, and dint apply the ATM card for 1 of the account, but then end up with no $ as well cox i using internet banking..
Not having an ATM card – thats smart but makes it hard to get money out when you really need it eh?
hehe…my first thought is i dun apply the ATM card then i wont go to withdrawn $$, i hate Q, waste my time..So by this way, i can have an account which i can really save $$, but unfortunately i have internet banking for all my accounts which i can transfer my $$ to others account which hv ATM cards…* sigh
There are others way which can save $$~
1) save the $$ in Fixed Deposit, you wont have chance to touch it and can help you earn some interest! But you hv to plan well ur budget or else will face the problem when you really need it!
2) use credit card 1st & pay later, then use the $$ to do some investment which can earn $$ (maybe Fixed Deposit or share)~ Not only can get what you wan to buy but can earn some penny as well (rather than nothing)! 🙂
This is something I need to work on for Year 2010! Great just-in-time tip, PB! 😀
Glad to be of help Rinnah!
I just started out with mine, hahaha.
What I do is that I track my spending, haha. At least that’s what I’m doing now.
I’ve learned from last year that those little expenditures add up to a lot (Like the Rm 4.3 Bubble Teas, and snacks) and within a single month I was spending rm 300 in total, including my phone bill, food, and the stuff that I bought, hahaha. THAT, and the money used for my contacts, and the bloody amount of $$ you have to use to get a driver’s license here, wuwu.
Thanks for the post though!! I’ll try my darnedest to save more!
Ah yes! Small expenses can really add up! So I don’t drink coffee outside and where possible, I cook my own dinner and lunches. Saves me a lot of money! 🙂
agree with you. I use separate account which I dun apply atm card to save too..
But it’ll be hard to get money out without a card? I guess thats the idea though 🙂
Thanks for the great article Paris! I don’t have separate bank accounts after a bad experience with the World’s Local Bank, but i do keep a mental note of how much i can spend in that month, as well as the minimum balance i need to keep in my account. So far so good!! 🙂
Whatever works for you m’dear! 😀
I have separate accounts, and I recently just opened another to be linked to the old one so I can easily transfer money from one account to another online 🙂 I am OC with my money too!
Haha! I did that too! I have separate accounts in different banks and even in the same bank hehe…
Thanks for the tips!!!
I’m trying to put some money in my backup account every month…. but end up using it till there’s only a few left…. which is frustrating….. trying hard not to over spend just more droolllling this year… ;p
Another way i just started this year….is i try to keep all the small change every single day…. like when we were small, we keep our lunch money balance in the piggy bank…. i’m saving up for this year estee lauder warehouse sale!! 🙂
That’s a good tip Pink! Small money will end up being big money! 😀
Excellent tip, PB! 😀
I didn’t even realise that having separate bank accounts would help me have better control of my spending. Just something that I have been doing all a long.
I have one account that’s for rental and utilities
One that stays stagnant unless I need to loan from it to make big purchases
And finally one that’s active with money often going in and out
So for my “hobby”, I only use my active account since that’s where my earnings come into.
Some tips just make sense eh? Especially when its something we’ve been doing unconsciously 😉
Yep, I do the same. Somehow I always change my mind when I happen to see other things that I want, then I save some more 😛 In the end, I don’t buy it anymore because it’s hard to save up the money in the first place.
Methinks it’s a great idea to save money 😛
Haha! I do the same thing. Save like crazy then think myself crazy for spending all that money on one item. Still reckon the 2.55 is worth saving for? 😉
You and me the same, darl. We’ve got a bag obsession. 😛 That’s what my second account is for. In fact, when banks around the world started folding due to the GFC, I had a separate account-you know never put all your eggs in one basket kind of thing, I opened a separate one. So, I have 2 savings accounts and 1 everyday transactional one. THe savings accounts are for my bags and also downpayment for the property we’ve been dreaming of. As much as I dip in for the bags, I always replenish within x months. You never know when that dream property is gonna turn up 😉
But as always, great tip!
I used to have a “bag fund” its now depleted LOL
I’m so busy with work that I don’t even have the chance to spend money or do any shopping. Not even on-line! I mainly favorite my necessities and when I run I’m going to run out of them, I will re-stock.
The only time I ever get to spend is on public holidays or when I take annual leave.
Maybe it’s a blessing in disguise. Lol
I also do the separate accounts thing and it can be a hit-and-miss sometimes. =P There are too many things I want to buy! I’m also very determined with keeping track of my finances.
Another of my savings method that I don’t think too much about is keeping a piggy bank. But I don’t just put coins into it. I try to keep it active and put in notes so that it’ll grow bigger much more faster. I try to clean my wallet once a week so any spare change and small notes will go straight into the piggy bank. Occasionally, I’ll put in RM10 or bigger notes if I can spare any whenever I feel like it. I just recently deposited the money after keeping the piggy bank active for about a year and it totaled up to almost RM1100. =D It gives a small boost to my financial record and now I’m more motivated to keep the piggy bank active!
I have a montly savings a/c. It automatically trf a pre-determined sum of money from my regular savings to that a/c. If I have any “extra” amounts in my regular savings, I will also trf there. 🙂
What motivates me to keep the funds in the monthly savings a/c is the teeny weeny bit higher interest rate and also forgoing the interest if I withdraw it pre-maturely.