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Top 6 Easiest Ways To Trick Your Brain Into Saving

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Top 6 Easiest Ways To Trick Your Brain Into Saving

Saving doesn’t have to be a difficult task. There are plenty of ways to siphon away cash from your income and force yourself into saving money. Financial advisors suggest that you start slow when it comes to cutting down your expenses on shopping and making expensive purchases. The key to kick-starting the saving mode is to realize that the amount set aside would become the financial security in the future. It isn’t advisable to take up bank loans for every purchase that you make since it increase your repayment burden. Instead, start saving to make the future purchases in cash.

Studies show that Americans have started preferring saving to spending, following the financial crisis in 2008. Since 2001, the gap between those who prefer saving and those who prefer spending have also increased.

Another poll reveals that individuals between the age group of 18 years and 29 years prefer spending to saving than those above 30 years. However, this trend has also shown a change in the last two years. Statistics have never favored Americans when it came to saving.

  • 42% of Americans live paycheck to paycheck, including 25% of those who earn more than $100,000 a year!
  • Over 30% Americans have less than $1,000 in savings

Business advisors claim that adults struggle with saving despite being aware of its necessity. Individuals claim that the excuse for not saving would be their student loans, or property rents. Another excuse would be the increasing standard of living in the country. In such a scenario, it isn’t surprising to note that majority of the Americans are unable to meet their savings goal. The savings situation is so terrible in the country that almost 60% Americans do not have the money to tackle unforeseen emergencies.

You don’t need a financial advisor to tell you that this is a bad situation to be in. You realize that the need of the hour is to save more money and save often. There will never be a good day to start working on your savings and so you will have to begin right now!

You must start being smart when it comes to money and here are some easy tricks to set your brain in the saving mode.

 

  • Auto Saving: According to leading financial advisors in the country, the easiest way to start saving is to send a part of the salary into another account as a forced expense. This forced expense would be the first step towards savings. With the amount missing from the account you use to make payments, you will know that you must meet all your need from the remaining money.The key here is not to take money out from the other account where you are transferring the money to be saved. Read  this storyto get a better idea on saving.
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  • Collect Your Change: The piggy-bank that was religiously used to save during childhood, can help you out in adulthood as well. Another easy way to trick your brain into saving money without feeling the brunt of it would be to start collecting the little changes in a jar or a piggy bank. Empty your wallet of the changes at the end of the day and put them all in. Remember – little drops of water make an ocean. Once you have filled the jar or piggy bank, take them to the bank or the coin exchange machine in the supermarket and put the money in the savings account.
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  • Forget the Increment: If you think that you will save after the increment in your salary, then you are wrong! The only way you can save is if you pretend that there was no raise in your salary and you automatically transfer the increased amount to your savings account. You are already living with your current salary and you don’t require the additional money. So, save it before you miss use it. Instead of spending the money for unnecessary things every month, keep it as a retirement saving or put it away for the dream house you plan to buy. See how you can challenge yourself to start saving.
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  • Maintain the Habit: If you were paying off your student loan since your first salary and have finally managed to clear the debt, continue with the habit. Keep aside the said amount every month in your savings account. You have already adjusted to a living without the amount, so it will not be an issue. You can do the same for the car loan. Keeping the money aside will help you amass enough to make a cash payment for your next car when the time comes.
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  • Use A High-Interest Online Account for Motivation: There needs to be an incentive to continue spending. You can get your much-needed motivation when you find out how much interest you have ended up earning from your saved stash. When you see how much you have earned over and above the amount saved, you will have the incentive to save further.
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  • Create A Zero-Sum Budget: This is another easy way to trick yourself into saving money every month. Create a detailed budget for the month and put away the extra money in the account. Also force yourself to put away any additional amount you earn that month. Since you have met all your expenses, you technically don’t need the extra cash that has come into your hand. Your brain thinks that you have only the said money at hand and will not want to spend further.
  • If you find it difficult to save alone, take the help of a financial expert, who will walk you through the process. It would be an investment for a better future. Forbes suggests linking with tools like Mint.com and YouNeedABudget.com, for added assistance. Whatever you decide, try and avoid setting the bar too high from the beginning. Achieve the goal, even if it is small, as this will provide further motivation for future successes. 

    Posted-In: contributorPsychology Opinion Personal Finance General

     

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