Two years ago I stumbled across the best short term saving technique I have ever heard of. It’s the $5 savings idea. It’s pretty awesome, I am a complete convert.
How it works:
Every time you get a $5 note you cannot spend it. Put it away in a different part of your wallet until you get home. Once you are home, put it in an opaque jar (because seeing money is terribly tempting!). Before you know it, you'll end up with a big ass jar of $5 notes that you can spend on whatever you want! You could apply the same principles to $1 notes if your country has them, but a $5 note is our smallest bill here in Australia.
Why does it work?
For me it works because it’s out of sight, so out of mind. I barely noticed the missing cash from my weekly spending, but I saved a few hundred dollars in only a few months. So naturally, I blew it on hookers and liquor. Just kidding, I used it for Christmas presents (that aren’t hookers and liquor... i swear).
Why should I do it?
If you struggle with long-term saving, this is a good way to get you started & get you in the 'saving' mindset. Set yourself achievable goals like "Once I get to $200 I'll go on a shopping spree". We use ours for Christmas presents so we start saving in about July and by Christmas we have all the money needed to buy our family presents. And we have a huge family, so that’s really saying something.
Don’t believe it will work? Try it out for a month and see how you go!