This is a tip that I never really thought worked, but starting to realize its benefits. I first read about it in my boy Alan Corey’s book , A Million Bucks by 30, and for whatever reason it was the one main thing that stuck in my mind :) That, and realizing I’d never hit $1 Mil by the time I turn 30! Haha… but it was a pretty entertaining book. And oddly written just like me!
Anyways, the idea here is to open up a separate account away from all your day-to-days where you can automatically send money to, but won’t be tempted to touch. And the reason you wouldn’t be tempted is because you’d pick a physical bank that’s really really far away from you :) Say, like 30-50 miles out or something. And then you’d make sure not to set up online access or activate debit cards or checks or anything else that would give you easy access to it.
Basically, you’re making it INCREDIBLY annoying to go and fetch all that money out :) You’re not hiding it from yourself all the way, but you ARE hiding it from your day-to-day activities.
As I said, originally I thought it was a cool idea but never really thought it would help me, personally. Well, after doing it accidentally for all my “hustle” money these past few months, I’m starting to recognize the benefits. It’s like proving a theory in science class ;) Everything seems like it would make sense, but until you put it to real life action you never truly know!
And because the bank I had chose ended up having really crappy online access, and I was too lazy to activate my check card (thus, making this experiment accidental), I’ve been able to save for 5 months straight without a *single* withdrawal! How cool is that?
If you’re having trouble keeping your hands out of the cookie jar, I recommend giving this a shot. Find a bank you trust, set up automatic xfers into it, and then do your best to forget about it. You can always go over and take it out, but the hope is that something would REALLY have to come up in order for you to put in the effort to make it happen.
We’re a funny group of humans. Sometimes we have to trick ourselves in order to do something we know is good for us :) Has anyone else had success with this?
PS: Some of my favorite tools:
|Personal Capital (FREE) -- If you’re looking for a robust financial tracker, Personal Capital is the way to go! They’re like Mint, but on steroids and have much better tools for investment and net worth tracking. // Full review|
|Digit (FREE) -- A super easy (and automated) way to save. Every day Digit analyzes your income and expenses and will push money aside for you any time it sees extra sitting there. I've saved over $4,000 myself using them so far! // Full review|
|Acorns -- Having trouble finding money to invest? Check out Acorns – they round up all your transactions to the nearest $1.00 and drops the difference into an investment portfolio for you. Easy way to start investing! // Full review|