Although it seems counterintuitive, you can actually save money by spending money if you’re smart about it. You might not be able to completely curb your spending, but what you can do is strategically using it to your advantage. Here are several easy ways you can do exactly that.
Open a checking account
Checking accounts offer checks and debit cards and are specifically designed for spending. By opening a checking account in Wichita Falls, you can save money by choosing one that rewards you for any purchases you make. You can then sweep all your rewards to your savings or use them to cover other necessary expenses like bills or groceries. What you earn in cashback should be used as a way to generate savings or at least a way to offset any essential expenditures. Setting up an automatic transfer of your rewards from your checking to your savings account is a great way to help you avoid spending it all in one go.
Pay yourself like you pay your bills
A normal budget includes regular expenses like bills, rent, food, and transportation. If you want to save more by spending, you should so include the cash you want to save. This way is much more efficient than just setting aside whatever you have left at the end of the month. Think of this as paying yourself the way you pay your bills.
Match the cost of your savings
When you buy something to treat yourself, you should consider it an opportunity to save. Match the cost of whatever your nonessential purchase was in savings. If you spend on an iced coffee on the way to work, put the same amount (or double) into your savings account immediately after.
Set your bills to auto-pay
By setting your bank account up to pay your bills automatically, you’re ensuring that they’re paid in full and on time. This will help you avoid any late charges. Some services even offer small discounts if you pay early or on-time, and certain loan providers may even offer small interest rate deductions if you enroll in auto-pay.
Automate your savings
There are plenty of mobile apps and bank accounts that streamline the process of saving. Apps like Qapital and Digit are services that can automatically transfer small amounts of money from your checking account to a separate savings account. There are also banks that also transfer a small amount of money to your savings account each time you swipe your credit card on a purchase.
Plan for big purchases
You can get the most out of major purchases if you time them according to annual sale periods. The best deals on expensive items like appliances, electronics, and furniture are around this time. You can also do this for regular purchases or you can just wait a day or two to limit buyer’s remorse. Avoid purchasing things on impulse by imposing a 24-hour rule on your spending habits. For non-essential items, wait at least 24 hours and think about it well before you purchase it.
Saving money by spending money is as easy as that. By following these simple tips, you’ll reach your saving goals in no time.