How to motivate myself to save?

[FairestOfThemAll37]

Hey guys and gals, I'm making a spin-off thread from my food budget help to broader budgeting thoughts. How do you all motivate yourself to shave costs when you don't *have* to? I asked for advice about food budget as it seemed an easy place to shave some costs. I would like to have a savings fun for fun money because it seems prudent. My issue is I don't actually *need* one at least not imo

I am not an impulse buyer (I hate clutter far too much for that), but I do tend to buy something I want when I want it. I eat out a lot (please see my other thread for details there). I also go away a fair amount. Usually one or two big trips per year (cruise or 4+ day beach vacation) and go away for the weekend once every month or at least once every other month. I know my biggest area where I could cut expense is in my rent (it's quite high for the city because of the neighborhood). I am thinking about purchasing a house as that would cut my monthly expenses and add to my equity.

I am single so I don't save for college funds or children and imo it's silly to save for children that I may or may not have lol.

I pay for everything for everything by cc and will use my debit card only in very specific circumstances. Unless I have to or somebody has paid me back for something I never carry cash and don't even have checks.

Thoughts or advice? What do/would you do? I realize I am asking for opinions so I fully expect to get them and don't take offense to many things. But please, ask me if you have questions rather than assume x,y, or z. Thank you in advance for all your help. I have gotten some great advice and implemented budgeting tips I never would have thought of on my own.

 

[KalamityJane]

As soon as you get paid, take the amount you want to save and put it in an account that you can't see, like an ING account. It's easier to save off the top than after all the bills come out.

 

[wiigirl]

As soon as you get paid, take the amount you want to save and put it in an account that you can't see, like an ING account. It's easier to save off the top than after all the bills come out.

Thats what we do too.

 

[carriemd]

I agree it's silly to save for children you don't have yet. How is your retirement? How old are you? being single it's especially important to save for a rainy day, in my opinion. We were the same way up until about 6 months ago....didn't *need* to save with 2 good incomes, so frankly we didn't....now we have one income and it's a whole different story. My advice would be to keep track of the "fun money" you spend for a week or month on coffee, dining out, etc and play with the numbers, adding it up to see what you could save if you cut out one ____ per week or month.
How much do you have saved for a down payment, if you do decide to buy a house?

 

[carriemd]

and I apologize if my questions are too intrusive, and certainly you don't have to answer....just asking as you requested in your first post

 

[worm761]

Do you have a fully funded emergency fund? I would aim for at least a year's worth of salary. Start small and aim for 3 months, then 6, then a year. While you seem to have plenty of disposable income, large emergencies do happen. Always best to be prepared.

Also, are you saving for retirement? If you have so much disposable income now (you sound young) then it may be easier to save for retirement now and let it build than to try to do it after kids and when you are older. I wish I would have started saving for retirement at a much younger age!

You seem to like your lifestyle, nothing wrong with that, but want to save. So maybe say that you will cut out every other month of your weekend getaways. Put that money in savings.

What motivates you in the rest of your life? Apply that to your budget! Or maybe start living by a budget. It doesn't sound like you have a real budget, you just know what you make and can spend. Not the same thing as a budget.

Just some thoughts. Hope they help!

 

[carriemd]

Also, are you saving for retirement? If you have so much disposable income now (you sound young) then it may be easier to save for retirement now and let it build than to try to do it after kids and when you are older. I wish I would have started saving for retirement at a much younger age!

My husband and I are 36 and I wish this too. Saving in your 20s and 30s is so important. It seemed so far away in our 20s but that was the best time to save. The best way to save for retirement is to take it away before you ever see it, via payroll deduction, which is actually pretty painless. When you get a raise at work, you just recalculate and have ALL the excess go to your retirement, plus the percentage you're already investing, and continue to live as you did before you got promoted.

 

[ZehnJahren]

As soon as you get paid, take the amount you want to save and put it in an account that you can't see, like an ING account. It's easier to save off the top than after all the bills come out.

Yes, I was always told that a personal savings is a bill that you treat that way - you're paying yourself. I put aside money in two accounts - one for emergency and one for fun - as soon as I get paid on every payday. Check your budget and see how much you can easily spare, then put it away before you do anything else with your money.

 

[ptlohmysoul]

Hey guys and gals, I'm making a spin-off thread from my food budget help to broader budgeting thoughts. How do you all motivate yourself to shave costs when you don't *have* to? I asked for advice about food budget as it seemed an easy place to shave some costs. I would like to have a savings fun for fun money because it seems prudent. My issue is I don't actually *need* one at least not imo

I am not an impulse buyer (I hate clutter far too much for that), but I do tend to buy something I want when I want it. I eat out a lot (please see my other thread for details there). I also go away a fair amount. Usually one or two big trips per year (cruise or 4+ day beach vacation) and go away for the weekend once every month or at least once every other month. I know my biggest area where I could cut expense is in my rent (it's quite high for the city because of the neighborhood). I am thinking about purchasing a house as that would cut my monthly expenses and add to my equity.

I am single so I don't save for college funds or children and imo it's silly to save for children that I may or may not have lol.

I pay for everything for everything by cc and will use my debit card only in very specific circumstances. Unless I have to or somebody has paid me back for something I never carry cash and don't even have checks.

Thoughts or advice? What do/would you do? I realize I am asking for opinions so I fully expect to get them and don't take offense to many things. But please, ask me if you have questions rather than assume x,y, or z. Thank you in advance for all your help. I have gotten some great advice and implemented budgeting tips I never would have thought of on my own.

It always helped me to save for something specific. Perhaps a house? Depends on what you want. Are you debt free? If not, pay off debts first. Perhaps save to buy your next vehicle in cash?

 

[FairestOfThemAll37]

Do you have a fully funded emergency fund? I would aim for at least a year's worth of salary. Start small and aim for 3 months, then 6, then a year. While you seem to have plenty of disposable income, large emergencies do happen. Always best to be prepared. Also, are you saving for retirement? If you have so much disposable income now (you sound young) then it may be easier to save for retirement now and let it build than to try to do it after kids and when you are older. I wish I would have started saving for retirement at a much younger age! You seem to like your lifestyle, nothing wrong with that, but want to save. So maybe say that you will cut out every other month of your weekend getaways. Put that money in savings. What motivates you in the rest of your life? Apply that to your budget! Or maybe start living by a budget. It doesn't sound like you have a real budget, you just know what you make and can spend. Not the same thing as a budget. Just some thoughts. Hope they help!

I agree it's silly to save for children you don't have yet. How is your retirement? How old are you? being single it's especially important to save for a rainy day, in my opinion. We were the same way up until about 6 months ago....didn't *need* to save with 2 good incomes, so frankly we didn't....now we have one income and it's a whole different story. My advice would be to keep track of the "fun money" you spend for a week or month on coffee, dining out, etc and play with the numbers, adding it up to see what you could save if you cut out one ____ per week or month. How much do you have saved for a down payment, if you do decide to buy a house?

OP here with some follow up info/answers!

I am just over the 30 fence lol

I am not saving for retirement as I have that in place already.

I have access to just shy of two years' salary in case of a big emergency.

Depending on the timing of the house, would either have all the money in hand or would make a small down payment with more than enough collateral to secure a mortgage until I had cash in hand.

I know I spend a lot on eating out (I have a whole other thread for advice on that issue). I like the idea of just immediately socking some away after a paycheck. Saving on the tail end never works for me.

To those that said I don't really have a budget, you're absolutely correct. I know what I make, my expenses and I fly by my seat with what's left. I guess that would be the best place to start.

 

[carriemd]

Well that just raises more questions.
When you say you have retirement in place, what does that mean? (and this is more rhetorical than anything else, bc I know this is getting a bit too personal now....). If you've got an annuity or trust or something, or a defined benefit pension (which I doubt bc of your age), just make sure you've calculated the future value of it vs what you'll need. Which I'm sure you've done, but I just have to point it out.
You sound like you *feel* like you need a budget, but you haven't necessarily articulated why (other than wanting one, which is certainly valid--but your answers don't seem to indicate there is a pressing need other than maybe training yourself to spend differently). Are you finding yourself living in some version of paycheck to paycheck (even if you are comfortable)? Are your weekend getaways leaving you strapped some months but not others? Is your two years salary in cash/money market form (or otherwise easily accessible) or would you have to pull it out of retirement, an investment account earmarked for a certain purpose, or something?
Another idea, see if your employer offers split disbursement of your paycheck. If you automatically put $x into a savings account every payday, it's even better than "paying yourself" when you get paid--because you never see the money so there is no temptation.
It sounds like you have fairly considerable assets, in which case, if you're not already working with a financial planner, you might want to consider it.

 

[Marionnette]

Hey guys and gals, I'm making a spin-off thread from my food budget help to broader budgeting thoughts. How do you all motivate yourself to shave costs when you don't *have* to? I asked for advice about food budget as it seemed an easy place to shave some costs. I would like to have a savings fun for fun money because it seems prudent. My issue is I don't actually *need* one at least not imo

I am not an impulse buyer (I hate clutter far too much for that), but I do tend to buy something I want when I want it. I eat out a lot (please see my other thread for details there). I also go away a fair amount. Usually one or two big trips per year (cruise or 4+ day beach vacation) and go away for the weekend once every month or at least once every other month. I know my biggest area where I could cut expense is in my rent (it's quite high for the city because of the neighborhood). I am thinking about purchasing a house as that would cut my monthly expenses and add to my equity.

I am single so I don't save for college funds or children and imo it's silly to save for children that I may or may not have lol.

I pay for everything for everything by cc and will use my debit card only in very specific circumstances. Unless I have to or somebody has paid me back for something I never carry cash and don't even have checks.

Thoughts or advice? What do/would you do? I realize I am asking for opinions so I fully expect to get them and don't take offense to many things. But please, ask me if you have questions rather than assume x,y, or z. Thank you in advance for all your help. I have gotten some great advice and implemented budgeting tips I never would have thought of on my own.

OP here with some follow up info/answers!

I am just over the 30 fence lol

I am not saving for retirement as I have that in place already.

I have access to just shy of two years' salary in case of a big emergency.

Depending on the timing of the house, would either have all the money in hand or would make a small down payment with more than enough collateral to secure a mortgage until I had cash in hand.

I know I spend a lot on eating out (I have a whole other thread for advice on that issue). I like the idea of just immediately socking some away after a paycheck. Saving on the tail end never works for me.

To those that said I don't really have a budget, you're absolutely correct. I know what I make, my expenses and I fly by my seat with what's left. I guess that would be the best place to start.

You say that you want to have a savings fund just for the fun stuff but you already spend what you want, when you want, and seem to have no problem covering the costs. Most people who set money aside in savings have clear-cut goals in mind for the money and that is what motivates them to save. You seem to lack any need to set those goals, so I can understand why you are not motivated to save anything in your "fun" account.

People who have large amounts of money at their disposal and all of their financial bases covered tend to think in terms of leaving their money to future generations. Perhaps your goal might be to establish an endowment at your alma mater. Maybe you would want to make a huge donation to a favorite charity. Do you have nieces, nephews or other relatives for whom a large gift could make a huge change to their lives? Forget the fun money account (you're already having fun with your money) and focus on something bigger than yourself and you might find the motivation that you're seeking.

 

[FairestOfThemAll37]

People who have large amounts of money at their disposal and all of their financial bases covered tend to think in terms of leaving their money to future generations. Perhaps your goal might be to establish an endowment at your alma mater. Maybe you would want to make a huge donation to a favorite charity. Do you have nieces, nephews or other relatives for whom a large gift could make a huge change to their lives? Forget the fun money account (you're already having fun with your money) and focus on something bigger than yourself and you might find the motivation that you're seeking.

I wouldn't say I have large amounts of money at my disposal, but I suppose it's all relative. I am lucky enough to have my financial future pretty well taken care of so I am able to use the money I earn on the present.

I feel like I should budget and save because that's what responsible adults do lol. Fun usually motivates me as I work to afford a decent place to live and to get to go away on vacation.

Maybe saving for something else makes more sense. I am the youngest relative I have. Saving to start an endowment at my schools would be on the magnitude of decades lol so that may be a bit beyond my means. I do donate to charities regularly but it never hurt anybody to donate more, I suppose.

 

[lizabu]

I find it easiest to sock away a set percentage on payday. When you do it then you never miss it.

 

[FairestOfThemAll37]

I find it easiest to sock away a set percentage on payday. When you do it then you never miss it.

This sounds like the ticket for me. Is there a general % you should start with or does it just really depend?

 

[msmama]

I do have a kid but otherwise, our financial situations sound similar.

I take a set amount and put it away every month. It transfers into my savings before I even see it. When my bank savings gets to a certain amount I put it onto another money market savings account or buy a few stocks with it (I hardly play the stock market but I do have a few mostly just for fun). I think there are ways to save money but also have a bit of fun with it.

I would suggest for month or two really paying attention to every cent you spend. I feel like knowing what you spend and where is important. I don't really have a budget but I do know where all my money goes (and sometimes have to adjust my spending because I'm not happy spending as much as I do on certain things).

You say you pay everything with credit cards. I'm assuming those cards don't carry a balance?

 

[dpswift]

Since you are asking for ways to save, at least part of you must want to.

Where do you want to be in 10 years, 20 years and so forth? If you are as well off as you seem and are looking at ways to cut expenses maybe early retirement is possible?

As others have mentioned it is easier to save with a goal. Are there any major vacations that you want to take?

 

[crisi]

I agree, you need to answer the question "why"-

For most people saving is about one of two things

1) Because they can't afford what they want without saving for it (earmarked saving - "I want to go on vacation to Europe and I'll need X")

2) Providing some sort of future security (Retire early, be able to handle a job loss or illness.

It doesn't sound like you are motivated by either of these two reasons - you can afford to pay outright for what you want, and you feel secure in you retirement and emergency savings.

There is a third type of saver - rarer than the first two - which is saving merely to amass wealth. Some people collect Disney pins, some people collect stocks. Some people measure "winning" by the number of children and grandchildren they have, others by their net worth. Frankly, I sort of see the appeal of owning 50 shares of Pfizer rather than a bunch of "stuff"