Some money management secrets that transcend time. They worked then, and they’ll work now! Here are five examples of money saving techniques from the past that keep the modern day bank account just as healthy.
The Envelope System (Even Without Envelopes)
One of the most old-school money-saving systems was stashing cash in envelopes and labeling them. This was popular because it works; once the money’s gone, there’s nothing left to spend — no credit, no overdrafting, and no mistakes to make because the funds literally aren’t there.
You can also digitally separate cash with certain apps. YNAB is a budgeting app that does this expertly, but even some banking apps have built-in systems that can mimic this. But the physical method can be just as effective, especially if you’ve tried using apps in the past and it hasn’t stuck.
Avoiding Debt
Credit cards weren’t a thing for most people, so it was a lot easier to avoid debt back in the day. Still, sometimes preventing debt is that simple: just don’t use your credit cards.
Maybe that means you leave it at home, refuse to open any new ones until you’re all paid off with your others, or pay for discretionary or fun expenses with cold, hard cash. It’s a swipe-happy world out there, but swiping is rarely a good money decision, and there’s nothing more suffocating than feeling like you’re stuck in a spiral of debt.
Delaying Gratification
The “sleep on it” rule kept people from blowing cash on stuff they didn’t really want or need. Waiting before buying helps you separate “must-haves” from “I don’t even remember what that is.”
Delaying gratification means pausing and taking a breath before you buy something. Ask yourself if you’re acting on impulse. And if it’s a larger purchase, promise yourself that you’ll wait at least 24-48 hours before you buy something. This will help you build discipline and feel more in control of your money, rather than the other way around.
Keeping Track of Expenses Manually
If you’re someone who can’t commit to a budgeting app, you might need to go old-school and pick up a pen and paper. Tracking every last expense by hand forces you to be more present and helps you be more mindful with your money.
You can still use an app if you’d like. Do whatever works for you; the point here is to help you spot bad habits and plug holes in your budget before they become too much of a problem.
Ignoring Status Spending
Sure, keeping up with the Joneses is a thing, but that’s still a relatively modern concept. People have been historically much more frugal. It helps that they don’t have social media tempting them with the latest and greatest in skin care or technology, but it doesn’t change the fact that you don’t have to chase trends — you’re choosing to.
The secret to success here might be deleting your credit card information from certain websites or deleting social media from your phone. But the less access you have to buying stuff that you think will make you happy, the happier you’ll probably be.
