Did you know that saving money is more psychological than a lifestyle or behavioral change? It’s a psychological thing.
If you are an impulse buyer, take some serious effort to convince yourself that you can save money.
Sometimes, saving money can be demoralizing. Sometimes I find myself discouraged by a money-saving challenge if I haven’t saved a penny by month’s end.
I know that I am not the only person who loves to save money.
It’s the only thing that will protect you from financial emergencies, and it’s what you’ll need to live a happy retirement. Savings allow me to travel a bit if I see a chance to.
It is hard to stress enough how important savings are. Saving money is not only a good money habit but it’s also good for your finances.
These are some tricks to help you save money and build a financial cushion if frugal living seems too difficult.
1. Save Money on Autopilot
Automating your savings is the best way to save money. The 50/30/20 rule for budgeting states that 20% of your monthly income should be deposited into savings accounts that will help you save for the future.
You can trick yourself into saving money by treating savings as your first expense after you receive your salary.
Set up automatic transfers of money each month to your savings account. You can save less than 20% of your monthly budget if your earnings are not that much. Start small and then build up the percentage.
2. Do not Leave the Change
Did you notice that prices for different items in stores can be set at various levels: $4.99, $5.99, or $10.99? Think about how many times you haven’t taken the change because it was only a cent. Imagine how much money you could have saved by simply making the change, no matter how small.
You can also use a jar to keep whatever extra change. Do this for several months, then check to see how much change you have been giving away.
3. Live a cash-only lifestyle
It is now easier than ever to purchase anything using credit and debit cards. What is often overlooked is how much money goes out in interest and fees.
You can trick yourself into saving money by getting rid of your credit card and using cash as much as you can.
Although it may seem cumbersome to have cash everywhere, it can help you to keep track of your spending habits since it is not easy to part ways with your physical cash than it is your digital.
4. Save up whatever Raise or Bonus
You should make it a habit of saving every extra penny you receive in form of a bonus or tax refund.
Although a sudden increase in money may make you want to spend it on expensive items that you’ve been wanting for a while, it’s better to save the extra money to improve your financial situation.
Although it may seem like a huge sacrifice, you will be pleased with the results one year later.
5. You can take a No-Spending Challenge.
A money-saving Challenge is a fun and easy way to improve your financial situation. Money-saving can be viewed as a game.
To see the benefits of a Money Saving Challenge, you can begin with a 30-day Money Saving Challenge.
There are some things you can do to make money-saving challenges more effective.
- All $5 bills and coins that find their way into your wallet can go into your savings account.
- To hold yourself accountable, tell a friend or family about your money-saving mission.
- For the next 30 days, don’t go eating out but instead, opt for at-home entertainment and meals.
6. Divert your savings
Diverting your savings can be a great way to avoid wasting money.
After you have paid off your debt and canceled your active memberships, make it a habit to transfer the rest of your monthly payments/salary into a savings account or any other saving means.
This could be investing in crypto or stocks. Again, these will require special education and monitoring.
With a few small steps and some motivation, you can save money slowly. It’s not easy, but it is what will get you out of debt and help with controlling your finances.
You might be tempted to believe that you cannot save. But you’ll be surprised when you implement the above tips into your daily life.