The Games We Play: Hiding Money From Myself

When looking for ways to save more money, use whatever works. Mind games are bad for relationships but they can be helpful with money, sometimes.

I hide money from myself.

Instead of spending coin, I save it and only use bills for most of my transactions, putting the coin into my piggy bank. When my pig is full I take it to the credit union where they have a free coin counter. The money goes to my vacation savings which I keep in cash.

In order to have access to the free coin counter at the credit union I have to have an account there. I once thought to make that my primary bank but their service was terrible so I never did but I kept the account. Not just for the coin counter but also because they have an ATM at my work that allows withdrawals in increments of $5. I hide my new car fund there. I paid my last car off in six months but next time I want to pay cash.

I made a fake withdrawal in Quicken to create a cushion so I don't accidentally overdraw my account (although linking my checking to a savings is the real overdraft protection). It is enough money for a minor house repair so that is my "minor house repair" fund. I've been doing that for so long that I really don't think of that money as real money.

Years ago, I started saving for a new wardrobe, in cash. This was supposed to be my reward for dropping a size. I did the same thing the last time I dropped a size but I have stagnated at that size so long the clothes I bought are worn out/wearing out/getting unfashionable. I have the $1500 sitting in an envelope but I think I should just put it in the bank so at least it can earn a little interest.

I am a union rep for my work area. Every month we have a meeting for which I am paid $40, less than my regular hourly wage but it is still money. I save it up in my "buy something frivolous without guilt" fund. It is cash in an envelope.

My mom gives me cash for birthday and Christmas. I used two years' worth of money to buy a little iPod stereo but I have another year's worth sitting in an envelope, in cash.

Notice anything here? That's a lot of CASH! Given inflation as a constant, actual cash money is a depreciating asset. The $1500 I put away for clothes 2 1/2 years ago doesn't have the same buying power now (current economy driven sales notwithstanding). If I had put it in an ING savings at 2.4% I would have an additional $92! That's a nice pair of shoes!

When I was financially very immature, running up credit card debt and impulse spending, I needed to hide money so I wouldn't spend it. Hiding money was part of the beginning of my path to changing my financial behavior. But now I am thinking that I am beyond games and that I am financially grown up enough to stop hiding my money. So now I am thinking about how to go about it. More on that in a later post.