Money Saving Tip Tuesday!

For this week's Money Saving Tip Tuesday, I wanted to do something a little different. 

I interviewed a friend (who wanted to remain anonymous) on how she regularly saves money.

Her money saving tips? Interesting and helpful. Read on to see.

1. Why did you decide to start saving money?

I decided to start saving money when I realized how much I wanted. I grew up in a home with just my mom and brother. My mom worked long hours and still managed to buy me everything I ever wanted. But as I grew older, my demands grew more expensive and I wanted too much. Since my mom wasn’t able to buy me as much as I wanted, I had to start buying my material possessions on my own. My mom has always taught me the importance of money management and I think that’s why I’ve become so good at saving.

2. What have you done to save money?

I do a few things to save money. First, I babysit, which means my paychecks are cash. Cash is extremely easy to spend and even easier to forget about. So, I started predetermining how much I would make in a week and set aside a certain amount. In this case, I made about $50 a week and set aside $20. The $30 I have left over each week is my spending money. This has became such a habit that I never even really needed to use my debit card. I became accustomed to only spending $30 or less a week. 

The second money saving technique I use is super easy. I only spend cash. Anytime I buy something I hand them an even amount. If it costs $12.42, then I hand then $13 even and drop the change in the bottom of my purse. At the end of the month, I dump out my purse and put all of the collected change in my “piggy bank.” About three times a year, I count all of that change and put it in money rolls and set it aside.

4. What do you plan to do with this "extra" money?

The best way to save is to have a goal. When I see something I want, I don’t go out and buy it. I save for it. That way I’m not stressed when it comes time to pay rent. I make it a game. If I want the iPhone 5 (which I did) then I need to save a certain amount each week in order to buy it (which I did). In may, I’m going to Vegas with my family. The only money I am taking is from my piggy bank. The pre-rolled coins are what I plan to gamble with. By only spending my rolled coins, it will help me to not go bankrupt and not use my debit card to take out more cash.

5. How reasonable do you think your money saving tactics are for college students?

I think my money saving tactics are perfect for college students. They aren’t too demanding and they become habitual. If you want something – fine – but save up for it. It makes getting it so much more rewarding.

6. What about people who aren't in college?

People who aren’t in college can use these tactics too. They should just choose a higher amount to save each week. But it's import to make your savings goal reasonable. It’s good to spend money and treat yourself to a dinner and a movie with friends, just don’t do it every weekend. It’s like a money diet. Moderation is key!

A money diet? Perhaps that's the key I've been searching for to finally unlock my door of savings. Here's a quick re-cap of my friend's money saving ideas:

• See how much money you make in a given week. Choose an amount you want to save and an amount you want to be able to spend. Only spend that amount and put all other money into savings.
• Only use cash for purchases. "Forget" about the change you are given and store it somewhere safe. Roll the change for later use. 
• Want to buy something? Make it a game. See how much you need to save and then do it. Enjoy the rewarding feeling.
• Treat yourself ... just not every weekend. Enjoy time out with friends and family, but don't get too carried away. 

Keep your eyes open for an exciting update on my The Congress quiz from last week. I've come across a helpful tool that I should have utilized much sooner.

Thank gosh this is a learning process!