I read about this on a finance hacking blog and its been working really well for me whilst I save up for a trip.
This is for people who have an urge to always use there debit card to pay for things without thinking about it.
get 31 envelopes and mark them 1 to 31 and wrap an elastic band around it.
cancel magazines subscriptions and direct debits and one click purchases like iTunes and amazon along with paypal so your not tempted to buy things online.
Work out your must pay bills first like mobile or student rent
Every month work out a budget and take it out at the bank and ask them nicely to split it all up into small denominations.
So this week £150 – £5 a day for example
I no its crazy low but the money I don’t take out goes to the trip fund.
then split the cash up into all the envelopes and every day you can access the dated number on the day as your daily spend.
also have a money pot for money you haven’t spent that day, I find a few days a week I don’t even touch the envelope. this money can go towards weekly spends like next months phone bill or food shop
anything your tempted to buy on iTunes or amazon add to a wish list and come back to it at the end of the month with your money pot and cash it in at the bank to buy these items. allot of the time your actually find out you didn’t need it any way.
Going out is really tough but now I just wait for Wednesday student nights with £1 drinks and as before when i used to buy everyone a drink I’m not going crazy any more on friday and saturday as well. Everyone understands the trip fund and drinks people have owed be are now turning up in my hand.
Don’t think I’m tight just cutting down and not going crazy any more, Think my beer belly is upset and my work is getting done as well! double bonus!
its really tough but totally possible when your a student surrounded by a cheap lifestlye and when you have a goal such as a trip of a life time at the end of the tunnel its really easy to stick to it.
That trip to South korea is only a few bundles of envelopes away!!
Hope this works out for some of you!
