This month, we challenged you to curb impulse spending and save that money instead. Over at Forbes, writer Halah Touryalai suggests an interesting savings trick that can help with this: tax your spending habits.
Money image from Shutterstock
Here’s how it works: For every dollar you spend on your particular vice — in my case that was weekend leisure expenses — put 50% of that amount into savings on Monday morning…you can adjust the tax rate to any amount that works for you. If you can swing a 100% tax then go for it, but if 20% is all you can afford then that works too. At 50% I wasn’t going to miss any bill payments but it still felt like a punishment, a painful one at that.
This is a variation of our previously mentioned “save when you splurge” tip. If you have trouble matching your spending dollar to dollar, this is an effective way to ease into the process. For more detail, head to the full post at the link below.