Buzz
When you're looking for ways to save more money, take inspiration from squirrels. Just as they stash nuts for the colder months, we can hide money away to prepare for lean financial times. And, just like squirrels don't keep all their supplies in one location, neither should we.
How saving like a squirrel can help you boost your savings
The idea behind being a financial squirrel is to reduce the risk of putting all your savings in one place while reaping the benefits of having multiple accounts. If you’re not keen on long-term investments, this tactic helps by making your savings less visible, tricking your brain into saving more.
I like to think of saving as a way of ‘hiding’ my money from myself. This helps me resist the temptation to spend it. One easy strategy is to open an additional savings account, one that you forget about until you absolutely need to use it.
Stash your money away to stay on track with your financial goals.
The squirrel mindset is also helpful when setting up various savings goals. For example, you could designate different accounts for specific purposes. You may have your typical rainy day fund and Roth IRA, along with a summer travel fund, a backup rent fund, a car replacement fund, and more. Dividing your funds into distinct accounts makes it simpler to monitor your progress. Here’s our guide to setting up a high-yield savings account.
There are many reasons you might choose saving over investing, especially if your financial goals are short-term. If you find it difficult to put money aside, consider ‘hiding’ it in several places—like a squirrel hoarding their precious nuts.
