What is this blog about?

A BIG hello from The Little Girl! This blog is about my tips on saving money. I'm one of the stingiest persons I've ever known. So if you feel that your piggy bank doesn't seem to stop losing weight, you're in the right place!

Tuesday, December 13, 2011

Separate Your Savings from the Rest of Your Money

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.