Put It in Pen and Tell a Friend

Cosmopolitan (Philippines) - - You, You, You -

Be­fore you put a peso in the bank, grab a note­book and write down your goal. A Do­mini­can Uni­ver­sity of Cal­i­for­nia study showed that peo­ple who wrote down a goal, in­clud­ing fi­nan­cial ones, were 42 per­cent more likely to ac­com­plish it than peo­ple who didn’t. Those who also shared weekly progress re­ports with a friend had a 78 per­cent higher suc­cess rate. Talk­ing money is still con­sid­ered taboo, says in­vest­ment ex­pert Kris­ten Robin­son Darcy, but do­ing so in­creases your like­li­hood of fol­low­ing through. Name Your Bank Ac­count Keep your sav­ings in a generic ac­count and you’ll be more tempted to dip into it, Darcy warns. “A name is more mo­ti­vat­ing than an ac­count num­ber be­cause it helps you vi­su­al­ize where your money is go­ing,” she says. Many on­line banks will let you open mul­ti­ple sav­ings ac­counts and give them per­son­al­ized names, mak­ing it much eas­ier to keep “Backpacking Around Asia” separate from “Worst-case Sce­nario Fund.” Dust Off Your Piggy Bank To fos­ter a penny-pinch­ing men­tal­ity, set aside your small change, even P10 coins. Fish­ing loose change out of your wal­let ev­ery night won’t gen­er­ate big cash, but the small rit­ual of col­lect­ing your coins “puts you in a sav­ings mind­set,” says fi­nan­cial an­a­lyst Greg Mcbride. “You’ll even be more likely to look for bar­gains when shop­ping or to ques­tion whether you re­ally need a pur­chase.” Save for Each Sea­son In­stead of wait­ing to save when in­spi­ra­tion strikes, start at fa­mil­iar, re­cur­ring points in time. For ex­am­ple, be­gin sav­ing for a big ex­pense, like your sum­mer va­ca­tion, around Jan­uary. Or for more im­me­di­ate sav­ings, go on a shop­ping fast the first week of each month. A study in showed that peo­ple who adopted a cycli­cal mind-set—like build­ing a monthly or sea­sonal sav­ings habit—saved on aver­age 78 per­cent more money than those with a more ar­bi­trary plan. COS­MOPOLI­TAN

Even the small­est change can make a big dif­fer­ence! au­gust 2016

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