Are You Really Saving? A Guest Post by Kylie Ofiu

With all the wonderful tips, recipes and advice on this site you can save a lot of money; but are you really saving? By that I mean, when you ‘save’ $50 on your groceries, do you actually put this in savings or pay it off debt? If not, then you are not really saving, you are simply changing where you spend money.

When I found out I was pregnant with my first child I looked for so many ways we could save money and tried to implement a lot of them. This was great, except instead of putting aside the money, it would get spent elsewhere. I didn’t notice at first that whilst I was saving $50 on my groceries each week, we suddenly started getting take away occasionally as I was too tired to cook. There were other minor things that crept in such as buying cute things for the baby and I couldn’t see why we didn’t have more money in the account.

Then it dawned on me. I was saving, but I wasn’t keeping those savings. I needed a separate account for my perceived savings. I opened up an online only high interest saving account and started transferring money to it.

When I did the groceries and spent less than we budgeted for, as soon as I got home I transferred the money into the account. When we got our electricity bill and it was less than before, I transferred the difference.

Now my savings were real. Instead of being spent in other areas I was saving money. If you have debt you could do the same thing, but transfer the money to your debt.
Without actually putting the money you save from all the advice on this site aside or off debt, you’re not really saving.

Kylie Ofiu is the author of 365 Ways To Make Money. She blogs about ways to make and save money as well as her goal to become a millionaire by the time she is 30 (April 2015) at Kylie Ofiu and Mozo – money and savings comparison made easy. You can also follow her on twitter and Facebook.