Saving as a Daily Expense

Do you know those charity commercials where they break down a donation amount into a daily expense? Surely you have $0.16 per day for a good cause. Why not apply the same psychology to your personal savings?

Instead of transferring money to savings once a month or with each paycheck, make it a daily transaction. If the end of the month comes and you routinely have spent all your money, then paying daily into your savings isn’t a crazy idea.

Now, if you have no trouble moving your pre-determined* amount of monthly savings from your checking account each month, then daily transfers are likely overkill. But if your track record of consistently saving your pre-determined* amount is unreliable, set up automatic transfers to move 1/365 of your annual savings goal to your savings account each day.

And you can finally use psychology to trick yourself into something that benefits you.

*pre-determined – I use this term since I expect that you already have an amount you want to save each year and for what purpose. But if you’re more of a seat of your pants type, you could just pick a daily savings amount and see how it goes. “I’ll save $10 a day.” Then after a few months, see how you did. Was it hard? Okay, then keep it at $10. Was it easy? Then double the amount.

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