Let’s talk ... active 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. The Bank First Active Saving System turns my old way of thinking on its head.
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.