If ‘how can I hide money from myself' is what you just googled, then you need to read this article.

woman in heels and long red hair, holding box of heels, text overlay "how can I hide money from myself" 5 tricks"Are you having trouble saving money because it's just…there…in front of you all the time? Saving money is important because life can throw you some sucky financial situations. But if you're not able to do it, then you might need to figure out how to hide money from yourself.

Pssst: were you looking to physically hide money from yourself in your home? Here's my article on creating homemade diversion safes.

Why You Would Need to Hide Money from Yourself

My husband, Paul, and I are all too aware of the type of sticky financial situations life can throw at you.

In the summer of 2008, Paul was laid off from his position. Just two weeks later while he was visiting me in Florida with the extra time on his hands, I came home early from work with a box and a tissue in hand. I also watched both sets of my parents go through bankruptcy, which was after they each went through the financial and emotional upheaval of divorce.

All of this has left me slightly fearful when it comes to money. Even though money might be coming in one day, it’s not necessarily going to continue flowing in the next, so we should not spend all of our take-home pay.

Other reasons to save money (and hide it from yourself, if you're not good at saving money)?

  • Who is to say that we won’t experience a medical situation?
  • What if one of us cannot work one day?
  • What if social security continues going downhill and there is nothing left for us when we retire at the future retirement age of 85 (looks like it’s heading that way, right)?

Even if you're not overspending or in debt, if you were to spend money as if you're going to continue at your current income level, then you could actually find yourself in a pickle rather quickly.

I am not a doom and gloom conspiracy theorist by any means, but I have a healthy respect for the future, and an even healthier respect for the unknown. This is why I am such a diligent saver. Savings are not an option for me but a necessity.

While some of the situations I have mentioned were self-induced, others were not. Whether self-induced or not, having a cushion of savings will make any situation much more palatable. It is much more digestible to place money restraints on yourself than to have them placed on you.

And by choosing to place money restraints on yourself and living below your means, you will put yourself and your family in a much better financial situation for when life decides to throw that curve ball.

The reason is twofold:

Money restraints equal extra savings in the bank, and also teach you to live on a lower income, thus making the transition to one much more smoothly.

Here are several ideas for “how to hide money from myself” that will help you to jump-start your savings, and deflate your lifestyle.

Hint: While “deflating your lifestyle” really doesn’t sound like fun at all, what will be fun is watching the balance in your savings account grow at a much faster pace.

Live on One Paycheck in a Two Paycheck Household

If you are a two-income household, you can choose to live on one person’s paycheck only. This could act like a simulation for the future in case one of you loses a job, wants to start your own business, or wants to stay home to raise children, or it could be used as a strategy to boost your savings dramatically.

Paul and I currently do this; we live on his income and use my income for savings for both short term and long term goals. Granted, he makes a sizable amount more than I do, so to ensure that we could still survive on my income alone, I have an excel sheet budget where I calculate out our costs and living expenses.

We can do this with either one of our incomes; but it would be super tight on mine (sounds like a fun challenge to me!).

Pay a Pretend Mortgage

Many financial gurus give this advice: if you want to purchase a home, begin “paying” a mortgage into your savings account to see if you truly can afford one.

Fortunately, homes in Texas are much cheaper than where I am from (the Northeast), so you can actually find one that is close to what you would pay in rent anyway.

What would be a good exercise is to take the mortgage that the bank feels you can handle (and the bank will balloon this figure), and pay this every month into a savings account. Not only will you build up money towards a down payment, but you will get to determine what monthly mortgage payment you are comfortable with, and not the one the bank thinks you can afford.

Paul and I ensured that our mortgage payment could be paid by either his salary or my salary alone, along with all of our other monthly expenses. That means we took the paycheck with the least amount in it (mine!) and based our comfort level off of that.

Live on Last Year’s Pay

Though you may not have received a pay increase in the last few years due to the recession, you can always go back to living on the income you made from an earlier time period, such as when you graduated college and got your first job or three pay increases ago.

Look up an old pay statement, or look in the archive to your bank account, and figure out what that amount used to be.

Adjust your spending accordingly, and have the extra pay automatically withdrawn into your savings account.

You used to be able to live on this amount, so chances are good that you can still do so (unless you have suffered from considerable ‘lifestyle inflation’, added to your family, etc.).

Execute Your Emergency Financial Plan

Do you have an emergency financial plan? This is your plan for when you lose a job, or have another small financial catastrophe hit. What bills can you give up (cancel cable, internet, cell phone plans, etc.)? Are there debts (mortgage, student loans, credit card debt, etc.) that you are overpaying on that you can go back down to the minimum requirements to increase your cash flow?

Perhaps you can defer your student loan payments (if you have them), or even temporarily suspend your car insurance if you are no longer driving it around.

With my insurance company I was able to do this while traveling abroad. For $10 per month, we could keep insurance, but have it temporarily suspended, thus keeping any discounts we receive for tenure.

While you may not want to do some of these things while just pretending, execute a few of them and reap the savings to build up your emergency fund. If you don’t wish to do any of these, it is still a good idea to take this time to write up an “I lost my job” budget in excel.

Remember that Limits Breed Creativity, NOT Deprivation

It may seem like putting limits on yourself financially — such as incorporating a budget, and setting up automatic withdrawals to your savings each month — is limiting your life.

But I challenge you to think differently about this. I am a budgeter at heart, but even I feel limited sometimes by my self-imposed boundaries. If I sit around and brood about all of the things I cannot purchase, or how I am nearing my spending limit and it’s only three quarters of the way through the month, then I would miss out on all of the great opportunities out there.

For one, I never would have learned the Drugstore Game, which led me to write six columns called “Frugal Confessions” and start this blog! Having unlimited money would have caused me to spend more of it (necessity is the mother of invention, not abundance) as I never would have discovered great tools like Craigslist, followed many of the blogs that I do with people dedicated to saving me money, learned how to invest my precious resources, save for retirement, etc.

Having limits in my life has only served me, not caused me deprivation.

With limits, opportunities abound. Just look at the use of stale bread in history.

Stale bread may not be a problem to people like you and I, but when you have hardly any money and a lot of mouths to feed you need to maximize your resources and eat subpar food. French toast was a solution to all of the stale bread that peasants could not afford to waste, which many historians date back to the Roman era (though there appear to be versions of French toast throughout history in all parts of the world). They found that dipping the stale bread into egg yolk softened it enough to make it edible…and delicious!  Italian peasants also had to find a solution for stale bread, and came up with an entirely different one from the local and abundant ingredients they had on hand: bruschetta, that amazingly simple dish of herbs, olive oil, garlic, tomatoes, and stale bread. In Eastern Europe, the pierogi was a great solution to hunger because the dough was cheap to make and you could literally fill it with anything that was abundant and on hand: vegetables, meat, fruit, potato, cabbage fillings, etc.

Have you taken advantage of yours?

Do you place financial restraints on your household in order to save more money? I’d love to hear about it!

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Amanda L. Grossman is a Certified Financial Education Instructor, Plutus Foundation Grant Recipient, and founder of Frugal Confessions. Over the last 10 years, her money work helping people with how to save money and how to manage money has been featured in Kiplinger, Washington Post, U.S. News & World Report, Business Insider, LifeHacker, Woman's World, Woman's Day, ABC 13 Houston, Keybank, and more. Read more here.
11 replies
  1. valleycat1 says:

    Excellent article. Tip 1 is the advice my grandad (who was in banking & insurance) gave my parents when they married & they have passed along to all the kids. He specifically advised buying a house you can comfortably afford on one income.

    We also pay a ‘pretend’ car payment since we paid ours off a few years ago, so by the time we’re ready to buy again we should have the money to pay cash.

    • FruGal says:

      valleycat1: Hello! Thank you. That is great advice he passed down, and also a great idea on the car payment!

  2. krantcents says:

    Mine is rather simple, I set up a payroll deduction to max ($22,000) my 403B. I bank an additional amount ($12,000) for our IRA and Roth IRA. Then we live on what is left.

    • FruGal says:

      Great job krantcents! Thank you for sharing your strategy.

  3. Squirrelers says:

    You’re clearly speaking from wisdom here, and I totally agree with the notion that the money might be coming in today, but it could stop at some point. Things happen – they will happen, it’s just realistic. Might not be job loss, but could be other financial losses. It’s good to arrange one’s financial life with eyes wide open, and plan savings accordingly.

  4. Sustainable PF says:

    You really do need to plan aggressively.
    Since we bought our new (old) house we’ve sunk $10,000 into it for energy retrofits, our washing machine got a golf ball size hole in the drum, our cat needed $600 worth of vet work, our house was broken into and $1500 worth of stuff stolen. Christmas happened (as usual), we finally got life insurance (and paid for the year up front). Some other things too.

    If we hadn’t been financially prepared to deal with the planned and unplanned we would be up to our eyeballs in debt.

    • Amanda L Grossman says:

      I am still so sorry to hear about the break-in. And yes….homes have a way of sucking money out of you:). Last year we had to replace our Central A/C and heater for the downstairs–yipes!

  5. NoTrustFund says:

    We’re working on living on one income, but it’s a much bigger challenge now that we have a baby and daycare costs. Right now we’re striving to live on one of our salaries except daycare costs and we’re almost there. We’re definitely there for our big, fixed ‘needs’.

    Thanks for the great post.

    • Amanda L Grossman says:

      Hello NoTrustFund!

      Thanks for the comment. I would definitely imagine that it’s harder to live on one paycheck with a baby. Even if you strive for it and don’t hit the mark, you will probably do better than many others. Thanks for sharing!

  6. Thankfully Thrifty says:

    So true! I had a fashionable friend come over this past weekend and help me go through my closet. We did get rid of a ton! But also she showed me how to wear things that I had been unsure of and helped me out with a few outfits. And we didn’t spend a dime!


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