Sneaky Savings: The Power Of A Second Bank Account
A few entries back, I mentioned that I tended to use a separate savings account when I’m saving for big purchases. I started doing this a few years back, when I was still living check to check, because the way most bank accounts set up their online access makes it WAY too easy to transfer money back and forth between your checking and savings. This is, of course, a good and convenient thing if you have a need to dip into your savings on a frequent/spur of the moment basis, but I find I’m much more successful when it comes to long-term savings if I use the “out of sight, out of mind” technique.
The way I do this is by starting a completely separate savings account, completely unattached to my primary checking account. This way, withdrawing any money from the special account becomes enough of a hassle that I won’t impulsively withdraw some of my nest egg because I really want a new video game or something. Also, because of my forgetful nature, having an account that isn’t in my face every time that I log into my main checking account’s online control panel means that I’m somewhat likely to completely forget about the money I’ve tucked away until I’ve saved up enough for whatever my original purpose was, or I’m in dire straits and really need the extra cash.
This works pretty well for me, but like I said, a lot of it relies on the way I shop and think and my ability to forget things that aren’t in my face (which is a blessing AND a curse). What sort of tricks do you employ to help with your finances?
