When we want to save a common strategy is to open a separate bank account for your savings, and maybe you’ll even set up an automatic transfer into that account.
But if you stop there you may find you don’t save as much as you’d like or could.
If the account is just called “savings” then when are you allowed to spend it?
Our brains specialise in creating very convincing justifications to spend money.
Without clearly defined criteria about what you are saving for you’ll probably find yourself dipping into the account for impulse buys, with increasing regularity.
Name your accounts to help you save more
I recommend you name your savings account to align with specific goals. And with modern banking technology, you can have multiple goals accounts for no extra cost.
This will help you resist the temptation to overspend by reminding your brain what you really want to afford to spend your money on.
By making trade-offs visible you are more likely to stick to your plans and achieve your goals.