Mackenna: Shout Out to My Money Saving Peeps!

Editor's note: We challenged all of our finalists to "Write a post about a good financial habit or tip that could help others."

Hope this weather has been treating you better then this rain we’ve been having in London! But this indoor weather has given me lots of time to organize and get everything in order!

I have always been a person who wants to be organized. I have bought the stackable drawers, colourful file folders, numbered everything and even labeled almost everything in my room! But none of this has really kept me in order. I wanted just one simple way that I could keep my personal life, school life and financial life in order. And I have found a way to do just that! And I really want to share it with you!

It’s not a big secret, or expensive habit and doesn’t even take up that much space!

What is it you ask?

Drum Roll Please!!

It is ENVELOPES!

Yes, really it is that simple. You don’t need to go out and buy any expensive books, tools, or follow a 10-step program to get your financial goals and life in order!

Basically what I do is get some envelopes from the dollar store and write my expense on the front. Here’s an example.

I know my cell phone bill is $55 a month- give or take. So I get out 12 envelopes and write $55 on the front and the date on which the bill is due. I already have the habit of paying for almost everything in cash, so when I buy a $1.50 coffee from Tim Horton’s from a 5-dollar bill, I would take the remaining $3.50 and put it in to the envelopes. That way over the month I am able to save the change from things I buy regularly and put it towards something I need. This keeps those extra quarters out of the washing machine and back in my pockets!

This type of thinking can be put towards any type of goal. Want to save for a night at the movies. Done! You have a place where you are able to keep your disposable income organized and on track. It is easy to see money you have saved and want to spend, but if you have it labeled in an envelope you see you goal right on the front and you are less likely to stray from it!

This type of realistic approach to visualizing your goals and seeing them through, in a hands on format really works for me. I am able to save up and keep tabs on my disposable income, which for some can be spent really quickly if you don’t know where it is going! This tip is not only easy to keep up with but it doesn’t require a huge investment of your time or money to get it in action.  

There is nothing more satisfying knowing that you have successfully saved up for something you wanted and not had to sacrifice or turn down activities because you didn’t really know if you could afford it.  

Now you know that you have X amount of dollars saved and by the date you have chosen you are able to spend it! Whether it be those new shoes or a movie night with friends, you are in control of your money, with out looking like a control freak!

I hope I have helped you out with a financial habit that has really worked me! Let me know how it goes for you when you try it out!

Cheers!

Mackenna