The single most effective way I have found to save money is to switch from using my debit card to using cash and a simplified version of the famous envelope system. There is something about cold, hard cash that makes you think twice about handing it over. Here is my method:
1. Calculate an average weekly spend on groceries and fuel over the last 3-4 months
2. Withdraw this amount in cash each week - this is all that you have to spend on groceries and fuel for the week. Whatever is left over is saved in an envelope.
3. Make it a game to try and save as much as possible each week by using coupons, rewards points, shopping the specials - any way to save that you can think of (some ideas for saving on shopping in posts to come)!
4. When you save up $1000 in your envelope, take it to the bank and put it in a special savings account (I put mine in my mortgage offset account so that it is helping to pay off my house). In 8 months I have saved $6000 in this way.
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