I was thinking of opening a new checking or savings account that will be reserved for just spending money. This way I can keep the bill and spending money accounts separate. Has anyone tried this before? Did it work?
It can work, as long as you don't have cards or checks. I have savings and a checking account and I am only allowed to transfer three times a month out of savings, so that maybe an idea. At the end it's about control, but as you have a family to look after you may need to dip into funds so it's different for those with no one else to consider.
I've done this in the past, and it worked well for me. Actually, back in the days before internet banking, I kept a savings account back in my hometown, and I would mail them checks periodically. I wouldn't have access to the money, except the few times a year that I was up there, although I could have closed the account by mail if I'd chosen to. I liked that I had limited access to it, and that worked for me that the time.
I haven't done this but I am thinking of opening an online savings account, since many times you get cash for opening the account. I don't use my credit union bank account right now either, so it would be good for me to have a back up savings account that I can earn interest on. It is helpful in terms of being able to easily track money deposited as well. I have no problem with online banking or savings.
I was actually thinking of opening an account in my home town and not having a card associated with it. I go home at least once a month and could make deposits when I am up there. My luck, I would be too lazy to go to the bank when I was in town.
Open a savings account and automate your savings. Each time you get a paycheck send automatically send a percentage of your earnings to your savings account then use the money that's left to pay your bills and buy anything you need. I do believe that having a savings account will help you save a lot more than you currently do. You'll need to resist the temptation to withdraw money from your savings account though.
Yes, this is definitely a good idea and it does work if you have the discipline. .....and/or if you have no need to keep dipping into your savings account too often. I did this with great success when I was saving to move countries. It was easy enough because I drew a budget and stuck rigidly to it for about 5 years. I was so focused on making the move that I didn't struggle to make it work at all I'll be doing the same once I'm fully settled and I feel that my financial situation has stabilised enough.
I think I will set up a savings account that is not linked to my savings at all. No at card or anything so that if I really did need to pull money out of savings, I would have to go to the bank to do it...we all know how much of a pain that is these days.
