Cutting Expenses and Banking the Savings (Snowflaking)

Snowflaking really means banking your savings. For example, let's say you have been paying $50.00 per month on your phone bill. If you find a better offer of $40.00 per month you now have a savings or snowflake of $10.00 per month. The idea is that you place the savings in a bank account with other snowflakes and the resulting "accumulation" can be used to make a big difference in your debt balance. A "snowflake account" is simply an account where you deposit your snowflake savings.

We believe the best place to begin finding monthly snowflake savings is in the list of items classified as "living expenses" in your Emergency Reserves calculation. Carefully review your recurring payments and determine what changes can be made to reduce or eliminate these expenses. The benefit in targeting these expenses is that they are recurring and as a result your savings grow quickly.

Is possible to save significant dollars without noticing a change in your lifestyle?