Here are 7 psychological money-saving tricks that will help you save hundreds of extra dollars each and every month and with these few simple tricks you could triple how much you save each and every month.
- Avoid social media: It seems like every time we go on any social media platform we are bombarded by ads from workout clothes to the hottest new toys. We are being exposed to so much sponsored content more than the pictures and videos that we actually want to see. Besides being terrible for our productivity, these apps cause us to spend significantly more money which erodes our chance at saving money.
- Automatic deductions: For those who have no control over their spendings, automatic deductions will work wonders. If you are unfamiliar with automatic deductions, whenever you get paid, a portion of your pay is withheld from going into your main bank account. Typically people will set up a savings account that the money is routed into, which in some cases is not accessible and this allows the money to continue to compound.
- Imagine your future rich self: Spending five dollars on a Starbucks Coffee doesn’t seem like a big deal but actually that five dollars could turn into more than a hundred dollars by the time you retire. So, imagine your future rich every time you consider a new purchase no matter how big or small. Always ask yourself if spending this money will make you closer or further away from achieving your future riches.
- Avoid big purchases: sleep allows you to save money in two separate ways; Firstly, without proper sleep your decision-making capabilities diminish, then the chance of risky or monetary behavior arises and that car that you would not normally consider buying may end up in your driveway. Secondly, sleep allows you the time to contemplate big purchases. Taking the evening to sleep on large expenditures allows your unconscious mind to process the information related to the purchase and then analyze it while you’re dreaming.
- Use cash: One of the best money-saving tips is to only spend cash whether you’re buying groceries or a new phone. Spending cash makes us notice some monetary effects of our actions this is because as we are paying we are physically handing over money and we see the depletion in our wallets whereas when you use a credit or debit card the potential to spend seems almost endless. Additionally, if you don’t want to break a big 50 or $100 bill because you will have to lug around loads of change, you may just avoid purchases all together allowing you to save more money than you ever could when relying on credit cards saving trick.
- Calculate the cost in hours: Convert the cost of your purchases into work hours. For example, if you make $20 an hour at your job, then buying a new $100 t-shirt is really 5 hours of your time. Ask yourself if that shirt is really worth five hours of slaving away at your job. When you begin to see your purchases in this light then you’ll become more conscious of how much a personal investment it was during this money making which will make you think twice before spending frivolously and ultimately allowing you to save more money over time.
- Generate more income: The truth is, your ability to save is restricted by how much you earn. If you currently make minimum wage than saving a lot of money will be next to impossible and the only way to improve this situation is to find ways to increase your income. For some, this may include picking up another part-time job, doing freelance work or increasing your skills to allow you to earn a higher hourly wage.
Find out what works for you and with this increase in income and the previously mentioned savings tips you’ll have more money than you’ll ever know what to do with.