“Pay to Use” When You Watch TV to Stock Your Emergency Fund
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photo credit: The Pug Father
I just read about a really interesting way to both get a decent emergency fund together and cut your spending in a post from The Street, based on the “Pay to Use” system.
Basically, this system means that whenever you do anything around your house that in end effect costs you money, you should pay up front for it. For example, you might decide that it should cost you $5 an hour to watch television, or $1 every time you do a load of washing.
One benefit is that you get to see how many of the things you do automatically are costing you money - it’s hard to equate doing the washing or turning lights on with the actual electricity bill at the end of the month. And of course, if you set prices like these examples you will end up saving a heap of money that can go towards your emergency fund, as well as always having enough cash to pay the bills.
Some side benefits seem to be that using such a system will make your life a bit more organized and efficient, and you’re likely to be less impulsive about the way you spend your time and make each minute count a bit more!
This entry was posted on Saturday, September 27th, 2008 at 5:41 am and is filed under Saving Money. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
