Checkout these Working Psychological Tips to Save Big Money.
Normally this idea of saving money is really difficult to follow and maintain. But today, I am gonna share with you the 7 psychological tricks that will help you save money with ease.
Stop Excuses
Before I start, let me tell you that we are all champions of making excuses. So the very first step for you to do is to make no excuses for not saving at least the amount you have set for yourself!So if you want to develop good financial habits, you're going to have to hack yourself.
Now let us begin,
Automatic SavingsBecause we are human, we have this tendency of 'we want what we want' - which often means spending without saving and without counting. Here automatic savings technique comes into the picture.
Automatic Savings? Yes! It is nothing but an easy way of setting up an automatic monthly withdrawal option (of a specific amount) from your checking account in your saving or retirement account (or both!). For e.g. you can select to transfer 10% (or even more) of your payroll to a separate account, directly with online banking feature.
In this way, every month a percentage of your salary will get deposited to your savings account. Keep this habit for months and years to come and you will be surprised with the results!
Contact your bank for more information on this.
Set Up a 30-Day Waiting Period Before Purchase
Suppose you see an item for e.g. a newly launched smartphone which you are very much interested to buy. Instead of buying it immediately, set a calendar reminder for 30 days that reminds you of the item you wanted to buy.
Getting into the habit of this will help you make more intentional purchases. Many times you won't even remember that you even wanted to buy that item, thereby saving you lots of money.
Put Day End Change To Your Piggy Bank
Now this is one of the best tip that I have been using since a long time. By the end of the each day check your wallet and pockets if you have any smaller denomination of money left, put it in your piggy bank i.e. in your money box or locker. Slowly and slowly it will become your habit which in return will give you good results.
You may keep a little change with yourself but don't overload your pockets with so many changes, rather keep them at home in your money box. Besides these days people do online transactions.
Last year, I was able to save surprisingly a decent amount of money just with this simple habit.
Pay in Cash
Now I know what I said in my above point regarding 'online transactions'. As far as I believe it is a much better way to make transactions since you don't need to carry cash with you all the time and also because its safe (well in some ways at least, provided if you also keep your payment cards safe and secure and don't share OTPs or PINs with any unauthorised person), one of the downsides is that people don't usually feel like they're spending money when they use one. This is the same reason why many people avoid credit cards.
If you are tight on budget and want to save money, it will be better to stop using any payment cards. Instead, pay for services via cash, this will make you feel what amount of money you are spending and you will gradually stop spending on things that are really not that required or important.
Use the Stranger Test
You walk into a mall and you see a shirt of Rs. 900 that you think will look great on you.
Even though you are following the above step of paying via cash to feel that the money is going out, you are still inclined to make the purchase.
Well, before you take out your wallet and complete the transaction, you should take the stranger test.
If you've never heard of the stranger test, let me explain.
Imagine a stranger standing in front of you; in one hand, he has that shirt, and in the other hand, he has Rs. 900.
What would you prefer to have?
In most cases, cash is probably more attractive.
By taking this approach on a regular basis, you will start to see yourself continually choosing the money rather than the item.
Choose Mortgage Over Rent
If you are living on a rent than the money which you a giving every month to the owner is getting wasted. Well obviously you are getting to live at his property and in return you should pay for the service, but the point is there is a better option available in which all of your monthly payments will be returned to you.
And that option is taking a property on mortgage. If your credit history is good, then look for a property that is available on mortgage for some amount, check yourself how much money you have and take a loan for the rest of the amount from the bank. And then after a proper legal agreement is made, you give the money to the property owner and the owner lends you his property for some specific period as mentioned in the agreement.
After that period he returns your money and you return his property.
In this way, your monthly bank loan payments does not get wasted, instead, they keep on getting saved in a way.
Do note that for any wear and tear to the owner's property for e.g. electric switches, paint job, door lock, etc. you are supposed to fix it.
So read the agreement carefully.
Sell What You No Longer Use
Take a look of what you have in your home or in the attic. Check if there are any items or furniture that you no longer use. If so, why not sell it?
Not only will you make room in your home, but you will also benefit from additional income. Also, that item could actually be helpful for the person who may actually want it.
So, as you can see everything is a matter of habit.
The key is to adopt good buying and saving practices in order to save money.
It is important to save even if it is a little bit every month. So better put aside a little bit at a time than nothing, for big savings.
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