spending money is a major factor that is affected by how our minds work and knowing the psychology tricks behind this put you a step ahead in the money saving game I'm going to give you seven psychological tricks you can apply in your life to save more money each month so the first tip is :
1- Cash :
This is a big one when you go out somewhere to eat or buy groceries or just buy things in general Try to use cold hard cash instead of a debit card or a check when you use cash you have an emotional attachment to the physical material paper and it's actually more painful to hand the cashier eight $20 bills than it is to swipe a card simply because it feels like you're giving less whenever you swipe a card try to always keep cash on you and limit that swiping bonus points if you only carry hundreds with you who's gonna break a clean crisp $100
Bill for some gas station candy or a milk at the grocery store I know I wouldn't.
Bill for some gas station candy or a milk at the grocery store I know I wouldn't.
2- Automatic deductions :
This is an amazing tip because you can set it up to not even know that the money is being taken out wherever you work most places have the option to take a percentage or a certain amount out of your paycheck and automatically add it to a separate account do this and send the money straight to a savings account you can't withdraw from after many years and yes becoming rich does take time if there's Interest on this account you'll have a ton of value from that very simple hundred dollars a month going into the savings account3- Having a monthly statement :
Peter drucker once said:" if you can't measure it you can't manage it." and this is so true I started a monthly balance sheet around 6 months ago and it's amazing to see where your money goes once you start managing it I realized I spend way more money on little things like food and small gifts Than I thought I did and here's how I do it and I recommend you try it too I write expenses on the top and add in my monthly payments like phone bill rent video scribe automatic saving deductions loan payment and other little personal things I pay along with the date that they are deducted below that I leave space for extra unpredictable things like gas or fast food or even stuff like movie rentals or clothes and right under that Is My income this is usually a pretty small space since I don't have very many income sources at the moment at the end of the month you add up your total expenses and income and you find out if you had a profit or deficit and it definitely helps knowing that if you spend $8 on some food they'll have to write it down and you start to realize that these little things add up try it and it will help4- Avoid advertising :
Now this is kind of a passive tip to save money but try to avoid general advertising this will reduce your likelihood of impulse buying something like that extra pack of gum at the cashier stand or that awesome cup of coffee that doesn't tip over that you think you need reducing exposure to this type of content or reduce what you think you need the5- "now" versus "later" :
So have you ever thought that you were super hungry at some point your Life I bet if you drink a glass of cold water and wait at just 5 minutes your temporary starvation feeling will subside it's super easy to trick our brain that we need something now and it takes practice to cultivate delayed gratification you can use the same principle as food with your money instead of buying that super cool tech toy wait a month and see if you still want it as bad as you did chances are something new will come out or something Better or you'll find some other area of your life that will make a better investment try to delay the things you want to spend money on and you'll notice the extra money in your bank account each month6- Turn your prices into hours :
And what I mean by this is to psychologically trick yourself into converting that $50 t-shirt and to how many hours you would have to work for it would you have to go to work for five
Hours just for that shirt and is it worth it probably "not" ,would you work half an hour for that burger "yeah ",what about working an entire week for a new TV or a game console this goes into value investing and will help your brain understand the value of what you're buying and the opportunity cost of what you're giving up for what you're buying better
Hours just for that shirt and is it worth it probably "not" ,would you work half an hour for that burger "yeah ",what about working an entire week for a new TV or a game console this goes into value investing and will help your brain understand the value of what you're buying and the opportunity cost of what you're giving up for what you're buying better
7- Mentality Shift :
If you're saving money because you want to buy something the best advice I can give you is to focus more on how you can increase your income ,Simply concentrating on how to increase your income will significantly more assist than concentrating on reducing your expenses to get back to that balance statement. It will be much simpler to increase that revenue spot by $300 a month than to forgo my phone insurance, gas, and a few other luxuries.
I bet you have a couple hours in your Life to spend working a bit more and if not the company are employed at working on your own life by starting your own business or investing in your thoughts by reading so that's it guys those were seven psychological tips you can take to save more money in your life right now.