Hawk’s Babble-Log

Here’s how you can save for anything:

1) Open another savings account.

2) Set up an automatic transfer of, say, $20 / week from your regular checking account into the new savings account.

If you get paid every 2 weeks, set the automatic transfer for once every 2 weeks. If you get paid once a month, set the automatic transfer for once a month. You get the idea.

If you are saving up for something expensive, set the automatic transfer for $40. The idea is to keep it low enough that you don’t notice it, but high enough so that you will reach the goal before you die.

That’s it!

Why does this work? Because you are not manually taking money out of your checking account and placing it aside. I tried it that way, it does not work. But setting it up to be automatic, now that works!

Also, the money which is being set aside is actually aside, and not part of the balance of your checking account. So when you look to see how much money you have, your separate savings is not included. This makes it more likely that you will not spend it.

Personally, I used this method to save up for (and buy) an upgrade kit for my milling machine. I set aside $40 / week for about a year to get it. This system worked very well as I just kinda forgot about it and that savings account grew all by itself. Then one day I looked in there and saw I had enough money to get it. Bam! It was almost like Christmas!

I’m currently using this method to save up money for the next upgrade to my gaming machine. It’s happening all by itself, my attention is on other things in my life.

Another advantage to this system is that it makes it very predictable when you can get that expensive thing. Take the total, divide it up by weeks or months, and you know how much you’ll need to put aside in the automatic transfer. Or work it the other way and figure out how long it’ll take to reach the goal at $40 / week (or whatever you are putting aside).

I have three savings accounts: one for emergencies, one for my computer, and one for shop tools. They all have automatic transfers going to them weekly. I check in on ‘em every once in a while, and buy something when they reach a certain point. Otherwise, I don’t put a whole lot of attention on it.

It’s effortless savings, and I highly recommend it.