Out of sheer coincidence today I actually received payments for various work I have done as well as depositing a GST rebate cheque. I was thinking too because as a teenager whenever I worked and the company issued cheques I would actually not deposit them right away. I would actually save up about a month’s worth of cheques and then make a trip to the bank to deposit them. That makes absolutely no sense in regards to good financial management advice because your money could be in the bank earning interest as a an example.
But for me it did a couple of things. Most people my age would have took the money from their part time work and just spend it right away since overall it didn’t feel like that much money. For example, got $200 that week for your work? Sound like a decent amount to enjoy yourself at the movie as an example. Have $50 in your wallet? You can afford to get those bag of chips. But since I didn’t deposit it I couldn’t spend it.
By the time I did deposit my cheques I would see say $800 to $1000 deposited. That amount seemed so significant to me I didn’t want to waste it on just anything. It had the opposite effect where I wanted to increase my savings even more. Of course nowadays we get things through direct deposit as an example, but for this example I think it held true still where the amount seems high enough to the point where I will view it as hard work that I don’t want to squander.
Again, it technically doesn’t make sense but I think everyone needs to find those little psychological moments of motivation to encourage you to keep going. Kind of like that debt snowball theory for many where you try and pay off your smallest debt first not so much because it makes sense financially versus the accomplishments will give you confidence to keep paying off everything as if you are rolling a snowball and making something gigantic as motivation.