Saving money is a task that is challenging to all consumers whether they are rich or utterly destitute. The presence of cash entices the consumer to shop regardless of that person’s need to pay the bills. Many consumers start out with strict savings plans, but they end up getting frustrated with savings failures and spending the money they have. Clever savings strategies can be fun and fruitful. Sometimes consumers need to plant their funds in a difficult place for it to grow like it should. The following are three clever money saving ideas:
Give It to a Relative
A consumer can give his or her savings money to a close relative each time the paycheck arrives. The person will have to be absolutely sure that he or she can trust the relative in question. The consumer may want to have that person open a savings account in his or her name and then set up work direct deposits into the relative’s savings account. The relative could act as a protector who can stop the consumer from withdrawing the funds prematurely. However, the relative needs to be a person of integrity so that the consumer does not lose any of his or her funds.
Get a Brokerage CD Account
Two kinds of certificates of deposits exist: regular and brokerage CDS. A consumer can save money by purchasing regular certificates of deposits from the bank. Technically, the individual is not supposed to cash in the CD until it matures. Doing so will result in a penalty. The CD cash-out penalties are usually enough to deter people from cashing them early. However, brokerage CD accounts have much tougher stipulations and larger penalties. Therefore, the consumer may want to obtain a brokerage CD for an ironclad protection strategy.
Open a Secured Credit Card
Obtaining a secured credit card is a roundabout way to save money, but it could work. The logic is that a consumer will have to put the money back into the “savings” fund if he or she uses it to avoid bad credit. The person may be less tempted to use a secured credit card than he or she would be with an open wad of money in hand. The consumer could keep the money on the secured credit card until the time comes to cash out. A simple ATM withdrawal will provide the funds from the special “savings account.”
Consumers can think of a variety of clever ways to save money in a way that minimizes the spending desire. The previously mentioned ideas are a great place to start.