I am always looking for different and innovative ways to save a couple dollars. I feel that the biggest trait to have when it comes to saving money is discipline. Whether it is living below your means, following a budget or stashing 10-15% of your income into a retirement account, it takes a good amount of financial discipline to achieve the goals that you set for yourself. Unfortunately, I do not have the discipline of Mister Miyagi, but rather that of Daniel-san so I have a lot of work ahead of me…
…Wax on…Wax off…Wax on… Wax off…
Becoming Financially Disciplined
A couple days ago, I ran into a post on facebook regarding saving money for 2013. It was an interesting concept on stashing extra cash into savings. The small amount that you put away will not take too much of a hit in your wallets. It will trick you into being a little more disciplined with saving money also. You start with $1.00 and deposit it into a savings account the first week of the year. Each following week, you increase the weekly contribution by another $1.00. So in week 2 (which is this week) you deposit $2.00, in week 3 $3.00 and so forth until week 52 where you deposit $52 that week. By the end of the year, you will have $1378 in your savings account! You will have even more if you deposit it into an account that earns more interest than your average bank, like ING Direct. You can get up to a $50 bonus for opening an ING Direct account through my referral link here.
My wife says I am an “Excel Nerd” so I had to make a little chart (self-fulfilling prophecy?) of the weekly breakdown of this savings plan. It helps me visualize how the weekly savings will add up fairly quickly. Do you see the total amount of savings at the bottom right of the chart? Yep, that’s an extra $1378 of savings if you stay disciplined and follow the savings plan. The best thing is that you are at most depositing $52. That is one night’s bar tab! Now imagine the savings if you scale the weekly savings up by doubling or even tripling the contribution!!
Here is a a graphic visual of how your savings will grow each week. Do you see how your savings dramatically grows by increasing your weekly savings by just $1.00? Just imaging how much more the savings will be if you increased it by $2.00, or $3.00! The graph will have a steeper curve, which equates to more savings. And the difference is the price of a fancy coffee!
I am going to try this to save an extra $1378 this year into a savings account. And since I am Running From Debt, I am going to up the ante and also match each week dollar for dollar and pay that amount off on my student loan debt. So by the end of the year, I will have saved $1378 AND paid off an extra $1378 in debt!
…Focus, Daniel-san, Focus!!!…
What do you think? Do you care to join me in this endeavor of improving financial discipline? If you make savings a habit and discipline a character trait, you will become more in control of your financial destiny. Leave a comment below and let me know if you are up to the challenge!!!
Thank you for running with me!