Nothing works like a little compulsion. I am hundred percent convinced that saving before spending instead of saving what is left over after spending is the real way to build up a bank balance with minimum pain.
Transfer an amount you are comfortable with, by direct debit to a fixed deposit account every month.
Why do I know this works?
In some of the countries I have lived in, a small amount of money is deducted from salary at source in the name of gratuity or provident fund. This is a compulsory saving that all employees are required to contribute towards as a part of their work contract.
Why does this always work?
When money is deducted every single month, consciously or subconsciously, a person starts counting his or her monthly salary without taking into account the saved money. When the amount incoming monthly is reduced, lifestyle always follows suit provided you take care to cut up those credit cards before you start saving.
Also having money in different accounts one of which is not easily accessible by use of ATM card is a good way of preventing impulsive spending.
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