Used this royalty free image from pixabay.  I always try to snap my own photos, but sometimes I don’t know what kind of image to use!

Anyway, that’s not the reason why we’re here!  I got a request from a friend in my Facebook group to write a post sharing some money saving tips.  I thought this would be a great post as we’re moving into the fall, because you know that means the holidays are coming up!  We all need some holiday shopping money to get our lovely friends and family some awesome gifts!  Thank you for the suggestion 🙂

Of course not every form of budgeting works the same for each of us, but I think mint.com and Forbes have some great tips about the 50/20/30 rule.  [The business/website names are clickable links by the way!]

In a nutshell these articles share a very simple budget plan where you split your income into 3 portions.  50% of your income should go towards necessities [rent, bills, fuel, groceries], 20% to savings [your emergency fund, retirement/401k plan, paying off loans/debt], and 30% for personal items that aren’t necessities [dinner out, movie night with friends, that new pair of shoes, the fun stuff!].

At a very high level, I use this method to be mindful of what I’m spending my money on.  When I first purchased a home, I didn’t really know how much of my paycheck should go towards paying for mortgage and utilities, etc. and when I read these articles it helped me make a reasonable decision.

A couple of my personal tips:

Treat your credit card like it’s your debit card.
I’m definitely one of those people who love credit card points.  [Why not if it means free stuff?!]  But I never go crazy with my credit card because when I use it, I think of it as though it were my debit card, using money straight from my checking account.  I never use more than I actually have available, so I know that I can pay it off in full each time.

Make it hard to use your money.
What do I mean by that?  Open a savings account with a bank that isn’t your usual bank and automatically deposit a part of your paycheck into that account each time.  It could be a small amount – maybe $20-$50 or whatever you’re comfortable with.  I do this because I don’t check this account on a regular basis, almost like I’m hiding the money from myself.  I suck at remembering passwords for multiple online accounts, so I check all of my accounts with my regular bank and let this separate account elsewhere accumulate some cash.  Out of sight, out of mind.  I also don’t have a debit card or anything attached to this account so in order to withdraw money, I actually need to physically visit the bank to do so.

Open a certificate of deposit (aka CD)
I HATE anything with a monetary penalty.  Another reason why I never use ATM machines that charge them, which lets me keep the extra couple dollars.  Hey, that stuff adds up!  So, to force myself to really lock down my savings, I open CD accounts.  Check with your bank if there’s a minimum balance requirement, because usually there is but it may vary between banks.  In a nutshell, a CD is like a savings account but earns a little bit more interest.  The catch is that the money is held in the account for a longer period of time or you will be charged a penalty to withdraw it early.  For example, you might start a CD with a 6 month period and if you really needed to they’ll let you withdraw the money before the 6 months.  BUT if you do, the bank will charge you a penalty.  Like I said, I HATE anything with a monetary penalty, so I just suck it up and keep my money in there for the full duration.  When the “renewal” period rolls around I’ll add more to it if I have the extra cash, or just leave it there to continue to earn some interest.  [BTW, cash back at the grocery store usually doesn’t charge you a fee.  That could be a possible option instead of using an ATM machine that will charge you.  But check with your bank to make sure!]

And of course, you don’t need to be a girl to follow these tips 😉

Thanks for stopping by!  I hope you found this post helpful!  Leave any comments or questions, or suggestions for future posts below.

*I’m definitely not a financial adviser, but have worked in the financial industry and have suggested banking products to customers as part of my former job.  I’ve also grown up with family members who have worked in the banking/finance industry and have picked up these habits by growing up around others who do these things.*

Shelly at Simple Casual Chic

2 Comments

  1. Reply

    Kelly

    January 7, 2018

    I have never heard of this rule and I really think it’s a great concept. I also never thought about the separate savings account brilliant!

    • Reply

      Shelly at Simple Casual Chic

      January 14, 2018

      Hope this helps you with any financial goals you may have for 2018 🙂 Good luck!

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