You would see this advice from a lot of money saving articles.
That is because it is very effective. Do not underestimate the power of setting
aside your money. I used to put all my money in one bank account and would
withdraw from it once I needed to buy something. I thought having all my money in
one place would make it easier for me to monitor them.
Lately, my family decided to save money to buy our own house
(we’ve been renting a condo unit since forever). We can afford a lot of houses
but my parents want to provide the best home possible for their two daughters. They
want it to be not too far from our workplace. They want us to live in a nice neighbourhood
where crime rates are low (or non-existent if possible). But such homes are in
the higher end neighbourhoods where affluent families live. We came up with a
plan – to set aside our savings and deposit them in a different bank account.
The rule is once we’ve deposited our money in that account, we can no longer withdraw
them, so we have to make sure that whatever we deposit in there is the “excess”
money that we have.
Weeks passed and I am so happy to see our money pile up. By
having a different bank account for our savings, we can clearly see how much we
already have and how much longer we have to wait before we can afford our dream
home. We all feel more motivated to work hard and to save.
