Spend Less Money With This Set It And Forget It Tip
Have you noticed that the amount we spend is based on the amount that is in our bank account?
For example, if the amount in our account is low, we don’t spend much, if at all. However, if the amount is higher, we spend more and often beyond what is needed. In other words, the more money we have in our bank account, the more we spend.
Instead of the basic car wash, we get the more expensive deluxe package because we have more money. We treat ourselves to a glass of wine and an appetizer, in addition to our soup and salad lunch, because we have more money. We buy software we might use not now, but one day, because we have more money.
We justify the extra that was spent because we “need” it, right? We get the deluxe package because two coats of wax on our car must be better than one. We treat ourselves to the extra glass of wine and appetizer because it makes us happy, and we need to be happy in order to be more productive, think clearly, be a better boss, and any other reason you can think of. And, we buy the just-in-case software because we need to be prepared…just-in-case. Remember hurricanes Harvey and Irma?
Spending in that manner is not always a problem, except for when the decision to spend is short sighted. And by short sighted, I mean forgetting that your credit card bill with the $9,500 balance will soon be due. …or perhaps your payroll taxes are due in a few weeks. And, oh yea, there are the other fixed costs that keep your business alive.
So what is the solution?
Stop spending money? No, we can’t just stop cold turkey. That’s like crash dieting. Doing so will leave us hungry and miserable with temporary results.
Instead we should work within our behavior.
Remember, we spend based on the amount available in the bank account. Therefore, we need to reduce the amount of money that is available to spend.
Transfer Money to Another Account - Set It And Forget It!
You have this option, if you have a bank account. It is the option and opportunity to transfer money from one account to another.
What’s awesome about this option is the fact that it takes an initial investment of maybe five minutes of your time to set up, and that’s it. You just set it and forget it! Remember that infomercial?
First, log into your account. The option to transfer funds should be on the main screen of most banks, however it is possible that you might have to go through a few pages to get to the transfer screen. When you get to the transfer screen, input the amount to transfer, and choose the recurring option in order to set the frequency.
My suggestion is to set the transfer for every 2 weeks, however you can do this weekly, monthly, and quarterly (depending on the institution you bank with).
As for how much to transfer, think of an amount you won’t miss. For example, will you miss $25? Or will you miss $200? Maybe even $500? Make sure the amount is reasonable because you do not want to feel deprived.
Now, where to transfer the money: If you have an account at a different bank, transfer the funds there. If you do not, then transfer to the savings account that most likely came with the checking account you opened. But honestly, don’t get hung up on where to transfer the money or the other options such as overdraft protection. Take action now and adjust later.
Just to share, when I opened my Chase account in 2008, I set my account to transfer $75 from the checking to my savings account, every two weeks. And guess what? I do not feel deprived! I don't even notice the $75 that was removed form my checking account, and it is always a pleasant surprise to see all that has accumulated in that savings account.
See? The transfer option in your account is not only used to pay someone. It is for you! Please take advantage of this!
Now you have reduced the amount of money available to spend, which means you’ll most likely spend less. Meanwhile that money you have put aside is accumulating in a separate account.
Remember, when it comes to reducing the amount available to spend, you set it and forget it! Check out the video below and go through memory lane. Thanks Ron Popeil!