We've talked about how anunrealistically tight budget can backfire. To stay motivated and stick to your financial goals, allow yourself some breathing room. Money site Go Banking Rates offers a creative way to do this: set a savings goal, then use 15 percent of it on a splurge.
Certified Financial Planner Christopher V. Kimball suggests saving a portion of your weekly income in a regular savings account—nothing too crazy about that. But Go Banking Rates explains his spin on this traditional bit of advice:
"Once the fund reaches a certain amount (say, $1500), you then take 15 percent of what you've saved and blow it on something totally frivolous. The rest gets dumped into a long-term savings or investment instrument, like a certificate of deposit. This allows you the best of both worlds: Spending money on things that you want while planning for your financial future."
Kimball adds that the "incentive of guilt-free spending" can keep people motivated to continue saving. For more money saving strategies, read the post in its entirety.
5 Uncommon but Easy Money Saving Strategies | Go Banking Rates
Photo by Ken Teegardin.
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