Like most people, I sell things on eBay from time to time. And, I require buyers to pay for all of my items through PayPal, eBay’s sister payment transaction service. The beauty of the system is that I do not spend the money in my PayPal account except to ship the items to the winning bidders (I have a PayPal debit card to use at the post office). So, over time, my PayPal account builds up as I sell more and more items on eBay, Half.com, and receive payments for surveys I complete with PineCone Research.
So, the old adage is true, “Out of sight is out of mind.” Forgotten, hidden, or not readily accessible bank accounts like PayPal are a great way to squirrel away money that you will not even know is “missing”.
Other Ways to Save. I also manage to save money every month in my ING Direct Orange Savings Account which pays a little more than a normal brick and mortar bank’s savings account. The money is debited from my normal checking account every month, and I never even notice that it is gone. Of course, I am only talking about a small amount of money, like $25 every paycheck. But, no matter how much money you deposit, it will really start to add up if you forget about it. I also manage to save a lot of my spare pocket change in a similar fashion.
So, when you try and fool yourself into thinking that you cannot save any money from your paycheck, I challenge you to squirrel a few dollars away in random accounts that you forget about like PayPal, ING Direct’s Orange Savings Account, or the piggy bank in your own home.