Tip of the Day April 21, 2009

Banking the difference

Save the difference between budgeted amounts and the actual cost. For example, if you have budgeted $120 for electricity and the bill is $106, pay the bill and bank the remaining $14 directly into a separate savings account. Do this with all your budgeted spending - petrol, phone, even groceries. This method of saving can become a competition to see how far below budget you can get your bills so you can save more. It's a fun way of saving for a specific goal - a holiday, new car, home renovations etc. Get the whole family involved in the "how low can you go" competition with the goal as the prize at the end. Set a time to reach your goal and then see how much you can save.