Many people have come to realize that money has to be set aside, but they are unsuccessful. Although they know it would be necessary to set it aside for immediate purposes (such as replacing the refrigerator) or for long term purposes (retirement, renovation of the house in five years) and start saving, they always realize that the amount set aside somehow melt.
Such people often feel like unsuccessful dieters: they suffer so much, yet it seems to be in vain. In a weak moment, their savings so far will be null and void. This is why many people jump into expensive unit-linked insurance or raise money in a home savings business without even wanting to buy a home in four years. This is the only way they will not have access to money and will be forced to save themselves.
The week I talked to somebody, he also had the biggest problem of making good money and making money from time to time, always ended up wasting money on his neck even though he knew he shouldn’t.
Here are some good tips if you have a similar problem:
Set up a permanent transfer from your bank account to a savings account the day after the payment.
You do not have to take out unit linked insurance to get your account for 20-30-50 thousand HUF at the beginning of the month. Since that money will disappear from your account immediately, you’ll never miss it.
Otherwise, the golden rule of saving is not to put the remainder at the end of the month (because there will never be enough left), but at the beginning of the month what you need to do and spend the remainder. This way, you will match your spending to the amount remaining, not your savings.
Currently one of the best interest rate savings accounts is the Savings Account, I wrote about it, and since then the interest rate has fallen slightly and I’ve written about it here. If you transfer the money here, you don’t have to do anything with it, it pays you interest.
Put the money out of your sight so you don’t always remember it.
When you collect money in your bank account, you will remember each time you use your card or go to netbank, or check your balance statement. And then you immediately remember how important things you could spend. On the other hand, if you open a free Piggy Bank and don’t ask for a monthly statement, you will sometimes remember that I have some money there, too.
I have an account at Erste just for accident insurance, and I have a serious amount. But I do not use the account for anything, monthly balance does not come from it, twice a year I remember that there is still money. As the English say: not in sight not in mind. If you have nothing in mind, you will forget about it. This is what you need if you are to keep up with your savings so far.
(Of course, write down such money on this list if something happens to you)
Tag the money
Although I am not a fan of labeling, it can help many people to open three Piglets, one is a car exchange, another is a kid’s university, and the third is a holiday.
If you give them the right amount of money, if you can think of chasing one, you will have a glimpse of why you have set it aside and maybe that will keep you from taking it.
I also told the aforementioned client that if they had a problem not touching the money, they would even put an emergency reserve on a FDRS account with the State Treasury and buy a 5 year government bond.
Because the FDRS account can only be canceled in one go, they are not touched because of the hundreds of thousands needed. Early redemption of 5-year government securities also carries a penalty of at least 2%. The macera (tax filing, sleeping tax) with FDRS termination, and the 2% penalty are probably deterrent enough not to want to be stripped of any money. And if you really have a serious problem, you can still withdraw the money.
And finally, if you want to spend less on unnecessary things, I made a motivator for you here. You write down how much you earn, what you spend unnecessarily, how much and how many times a month. And this table motivates you to do nothing more. If you want, you can print out the final result, or you can make a table because it’s pretty cheap. If you feel like upgrading, we thank you.