Financial Tip Of The Month- October 2019

Most of my life I have had expensive tastes. For the most part I tend to use sales and clearance sections to my advantage when it comes to this bent towards the finer things. For instance, I recently was able to get a new suit at over 88% off its original price by paying attention to holiday weekend sales that included clearance items. Occasionally though there is an item I really want and it may not go on sale or clearance anytime soon. In these instances, I can go without, or I can save for it. I will admit saving for a single purchase is hard – especially in this age of instant gratification. It is tough to keep saving month after month to get that desired object. The satisfaction at the end is worth it though.

A few years ago, I brought this concept to my students in a lesson entitled the Penny Savings Plan. This idea on its own can provide a nice way to save for specific things; moreover I think concepts from this plan can provide needed motivation to keep saving and to not spend our savings when it is tempting to do so. For instance, I am currently saving for a certain watch. However, I am not following the penny savings plan. Instead, I am savings a set amount each month. The aspect from the penny savings plan that I am applying deals with goal setting and motivation. I have an envelope where I am keeping the money I am saving each month, and on that envelope, I have a picture of the watch printed out along with a ledger tracking how my progress. This seems simple, but this small task can improve outcomes in goal setting, especially when it comes to saving towards a purchase.