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Step 1
Determine where your snowflake deposits will go. You might keep your cash snowflakes in a box, or you might open a separate bank account in which to deposit snowflakes. This decision will depend on what kind of snowflaking opportunities you create- the key here is to make your savings convenient so you will be more likely to stick to it. Keep your options open so as not to limit yourself!
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Step 2
Think about all of your monetary transactions and start finding ways to snowflake. Every two weeks, you get a paycheck. Is part of that paycheck automatically placed into savings? It's one of the first things you'll hear from any savings or debt reduction expert, but if you're living paycheck to paycheck, the recommended 20% might be impossible to put away.
This is where snowflaking comes in. When you can't part with a large amount of money, forget about it. Instead, put away a small amount- could you spare five, ten dollars? If you have that amount automatically transferred (into your snowflaking account) when you get your paycheck, will you even miss it? The answer is usually no, and you've now created an emergency fund or a payment toward that credit card bill. -
Step 3
This is the next thing you will hear from the experts: give up the Starbucks or the manicure. Brew your own coffee, do your own nails, go to the beauty school for the massage (that one actually yields incredible savings). Here's the snowflake twist: put the money you saved (or half that, or a quarter) into your snowflake account. For example: If your daily Starbucks is $5, brewing your own coffee costs you $1, and you've decided to put away half of the savings, you now save $2 per day on coffee, and add $1 per day to your snowflake account.
Of course, everyone has already given up Starbucks, but this can be applied to so many things. Order one less drink when you're out with your friends on Friday. Forgo the movie theater and rent instead, or forgo renting and see what's on TV (or in your DVD collection). Whatever you do, try to estimate what you've saved and be sure to put that money into your snowflake account. -
Step 4
Grocery shopping is a goldmine of snowflaking opportunities. Do you buy mostly name brand items? Give the generic stuff a try. Sometimes these products just cannot be tolerated, but if you find some things that aren't much different (medicines are usually a big one) you will save repeatedly. Also, take advantage of coupons! Don't let them entice you into trying new things, just take the ones that apply to what you already buy, take them with you to the store, and hand them over. Do you have your (insert grocery name here) card with you today? Snowflake that money too- you saved it!
Determining the snowflake amount with grocery shopping doesn't have to be exact-forcing yourself to keep track of every cent will probably deter you from bothering at all. If you've found 5 okay generic items, and their cost difference from the name brand is around $1, put $5 into your snowflake account after every shopping trip. If you use coupons or the store's card, usually your savings is documented on your receipt, so keep that until it's time to transfer money or put away cash. -
Step 5
Take a look at all of your subscriptions. Is there anything you can live without? This is an excellent place to save money, because while you usually are getting a good deal (99 cents an issue vs. $3.99 on the newsstand), there are a lot of subscriptions that people don't take full advantage of, thereby not getting the full value out of their purchase. This includes gym memberships- if you're not going as much as you planned, get rid of it. There are plenty of ways to exercise without equipment. Would you be willing to stop by the library to get your magazines or rent movies you would have received from Netflix? Don't get rid of everything you enjoy, but just stop and think about what you're really paying for and how much you're paying for it. If you can find anything to cancel, add that amount (monthly, yearly) to your snowflake account.
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Step 6
Snowflake any surprise savings. Let's say you plan on buying a computer that was $1000. You've saved up the money, and on the day you go to purchase it, it's 15% off. You pay $850, and $150 goes into your snowflake account. That rebate finally came in the mail? Straight into your snowflake account. Found a $20 bill in your coat pocket from last year? Straight into your snowflake account.
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Step 7
When was the last time you called your cable, internet or phone company just to ask if they could do anything about your rates? If it's been a while, you might be able to make something happen. It's worth the phone call, and the money you save can be added monthly to your snowflake account.
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Step 8
Do you occasionally sell items on eBay or Craigslist, clothing to consignment stores, or books, movies, and CDs to resale shops? Consider putting all or a portion of those proceeds into your snowflake account.
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Step 9
Open a high-interest savings account. There are banks that will give you great interest rates with no minimum balance. If you use this kind of account for your snowflaking, all of the interest will automatically be there. If you use a high-interest account for an emergency fund or for regular savings, periodically transfer the interest from these accounts into your snowflake account. It's free money, and no matter how small the amount is, your snowflakes will add up.
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Step 10
Lastly, ask family and friends if they have any ideas for your snowflaking. Other people sometimes see us differently than we see ourselves, and you could be overlooking a savings possibility that was right under your nose. Of course, snowflake your savings from any action taken.
But remember: money is a very personal thing, and you or the person you ask may not want to talk about it. Don't push any matter that makes you or anyone else uncomfortable.
