Let’s talk ... active saving

Let's talk. Acting saving.

Saving. Like exercise – one of those ‘things’ we’re all told we should do. One of those things we know is good for us… but hard to do.​

I built amazing budgets – auto calculating formulas and colour coded. A work of art! So, savings must have been a cinch, right? Far from it.​

The reality is life is busy. An excel spreadsheet can’t do the work of putting actual money aside into a savings account. Or stop me from buying yet another pair of shoes cause it was on sale. ​

The Bank First Active Saving System turns my old way of thinking on its head. It starts with – save first, not last. Why should my future-self get my current self’s leftovers? Surely, she deserves more than a couple of crumbs? ​

Income – Active Savings = Needs + Wants​

I’ve been putting the system to the test. It has meant changing my money habits and patterns. Instead of saving what’s left, I set aside my savings first. I actively choose the amount to save – and keep it far away from my usual transaction account so I can’t be tempted to spend it. Out of sight, out of mind.​

It does mean I have to make the rest work to cover the essentials (my Needs) and the luxuries (my Wants). It does require me to make conscious and mindful trade-offs. It’s easier to make the trade-offs knowing that I’m setting my future self up for financial freedom. ​

Instead of buying my fruit and veg at the local ‘nice’ greengrocer, I head to the markets every week. And I still buy shoes – I just buy them (often brand new, still in the box) from my favourite Op Shop. ​

You may be thinking – it sounds like it’ll take a LOT of time to work this out and will power to keep going. It would, if I didn’t set it on Autopilot.​

Authored by Kate.