Finance Buddies, do you agree that sometimes wealth isn’t just what you can see with your eyes, but rather what you can’t see? We often think people with branded items are wealthy. But that’s not always the case. In fact, those overpriced branded items aren’t wealth. Buying a bag worth 1 billion means losing wealth worth 1 billion.
Yup, wealth cannot be measured by outward appearances or luxurious possessions, but by the amount of savings and assets that you have. By saving, you’re accumulating wealth. As Morgan Housel says in “The Psychology of Money,” “wealth is the nice cars not purchased.” In other words, wealth is the income you don’t spend.
So, if you’re trying to build a saving habit, here are some unique and fun ways to save money that’ll make saving less boring!
Unique and Creative Ways to Save Money
1. Korean’s Pocket Calendar Method
There are many things to admire about Korea, from food to entertainment to tourism. But did you know that Koreans have a unique and interesting method for managing finances? They often use a pocket calendar to save money. As the name suggests, this calendar has pockets for each date. Every day, they put money into their pocket for that day.
They commit to only spending the money in that pocket for the day. If they put in $10, it means they can spend up to $10 that day. Any leftover money is then saved elsewhere. This method is great for training yourself to live frugally and control your spending.
2. Make a Coin Bank
Another unique way to save is by collecting small changes. Many people underestimate small coins like 5 or 10 cents. They often get lost in wallets and pockets or disappear altogether. But if you save them little by little over time, the amount can become significant! Later, you can exchange the collected coins for paper money at a bank or even a supermarket.
3. Use the 30-Day Rule
For those prone to impulsive buying, especially those who justify it with “better regret buying than regret not buying,” this habit isn’t great for your finances. The reason is that the item you want to buy may not bring long-term value or happiness. Remember, human desires always change. What’s appealing now might not be in the future.
So, if you want to buy something, try waiting 30 days first. If after 30 days you still want to buy it, then go ahead. But if you’re no longer interested, it means you don’t need it.
4. Barter
Bartering has been practiced since prehistoric times, around 6000 BC. Who would have thought this ancient method could still be useful in the modern world? You can exchange goods and services with others, helping you save money since no cash is involved.
For example, you can trade books you’ve read with a friend who has a book you want to read. This way, you get new books without buying them. This also works for services. For instance, if you’re good at graphic design and your friend can fix motorcycles, you can exchange your skills.
5. Saving Challenges
To make saving less boring, try spicing things up with a saving challenge. There are many types of saving challenges you can try. One example is the “52 Weeks Money Challenge.” In this challenge, you start by saving a small amount in the first week (like $1) and then increase it to $2 the next week, then $3 the next week, and so on. After 52 weeks, you’ll have saved $1,378.
Another example is the “Envelope Budget Challenge.” In this challenge, you categorize your expenses like food, transportation, entertainment, etc., and put cash into envelopes for each category. Whenever you need to spend money, you take it from the appropriate envelope. You can’t spend more than what’s in the envelope.
6. Raise Your Humility
Lastly, a very effective way to save money is by practicing simplicity. The main reason people are extravagant is often psychological. We tend to follow our desires or social factors like wanting to appear wealthy or not wanting to lose to others. So, before thinking about effective saving methods, the primary thing you need to do is control your desires. By controlling your desires, you’ll reduce expenses. Remember, the best tool to save money is self-control!
So, Finance Buddies, that’s our discussion on unique and fun ways to save money. Hopefully, this helps you build a saving habit!
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