Thursday, 4 October 2012

Cash Stash - Money Savings Envelope (Part 5)

I am interested to see how you are going with your Cash Stash?  Have you started already?  Is your pile of money slowly growing before your eyes?

Today is the last day of this five-part series, with the final tip to help you to achieve your short-term financial goals quicker than you had ever imagined!

Step 5) 'Round Up' all of the above items

This one is really easy, all you have to do is 'round up' the amount that you are stashing, using the methods in Steps 1-4: 

Stashing the money you saved on Part #1 Sale Items

Stashing the money you saved on Part #2 No Impulse Buying

Stashing the money you saved on Part #3 Bringing your own Food and Drinks

Stashing the money you have Part #4 Left Over Money

You can round to the nearest dollar, or if you are really serious about saving, round to the nearest five dollars.

So, how does it work?

If I buy something on sale and save 85 cents, I am not going to rummage around in my purse and count out 85 cents - I just grab $1 (or $2 if I don't have any $1 coins) and pop it into my zippered savings section of my purse.  By 'rounding up' you are increasing the money that you are allocating into your Cash Stash.  For groceries and small items, I usually round up to the nearest dollar.

With my spending money, I try to round up to the nearest five dollars.  Another example - if I picked up a pair of earrings that cost $16, and put them back, based on my 'No Impulse Buying' rule, then instead of putting $16 into my Cash Stash, I round that amount up to $20.  It is quicker and easier to move over a single note, than it is to count out notes and coins - plus you see your pile of savings grow that much quicker too!

By simply 'rounding up' the money that you transfer over into your Cash Stash, you will find it easier to manually pop that money over when you are out and about, and as a bonus that the pile of $$ will grow more quickly!

So that is the end of my little series on how to create your own Cash Stash, system to help you to achieve your short-term (and possibly long-term) financial goals.

I am not sure how to make this system work without a 'cash' finance system, I guess that you could keep a list in a notebook or on your phone and transfer the 'savings' over the internet into a designated account each week/fortnight/month?  It might be worth a try - although I find it much harder to 'save' digital finances than I do to save with real money!  I just love working with cash, rather than cards.  I always lose track of things when I swipe :(  I feel much more in control when I can actually see, handle and control the money that I am using.  It is also harder to hand over $50 cash for something than to swipe a card for $50 - you can visibly see that money going out of your pocket, which always makes me think twice about handing it over!

Good luck with your new savings venture - and make sure that you let me know how you go and post pictures of what you achieve on my Facebook page!  I would love to celebrate your success with you!

My 5x5 Expedit that I paid CASH for (after just a few short weeks of using this savings method) is sitting in the garage, waiting for my study to be painted, ready to be assembled once the room is done!


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