Saving money when you suck at it
Simple tricks to save more money
Good morning, Everyone.
Savings money is hard for most people, me included. But why is it so hard, and why do we sometimes spend money like no tomorrow.
Did you know that 69% of Americans have less than $1,000 in a savings account?
That might make you feel better, and it might make you feel worse. But this is a judgment-free zone, and the purpose of this post is to help everyone save a little more money regardless of our account balances.
Savings is important for two main reasons.
It’s essential to always have a couple of months’ expenses saved up because you never know what could happen. (This number is different for everyone and depends on your lifestyle & living situation). Peace of mind can be your biggest asset.
The Key to Financial Independence is living below your means and investing the difference. Living below your means or spending less than your income i.e., saving, will play a critical role in financial success.
Making Saving Easy
There’s no surefire method that works for everyone when it comes to keeping a few extra bucks. But there are a lot of tricks you can use to make it less grueling.
Automate your finances.
(You already walk around with a phone glued to your hand) There are several apps available to us that will track all of your spending, income, subscriptions, and more. Automate the whole process so that when payday hits, all of your bills and expenses will be taken care of.
A popular budgeting strategy that entails spending 50% of after-tax income on necessities. 30% goes to your wants and 20% into savings/debt payments/investments. Depending on which is a higher priority for you. If you need someone to tell you how much to save this might not be a bad reference.
the 30-day rule.
Let’s say you’re scrolling through Amazon and the latest gadget catches your eye. Instead of immediately clicking the buy now button. It might be a good idea to leave the item in your cart for about a month to see if you still really want it. This works for two reasons: 1) it gives you time to cool off and 2) the retailer might give you a coupon code urging you to come back to your cart.
Negotiate your bills.
Right now you could pick up the phone and call your cellphone company or insurance provider and simply ask them if they can give you a better deal. Sometimes the simplest ideas go over our heads, But this one is effective. Companies do not want to lose a loyal paying customer like you and they’re often happy to lower your rates to keep you around.
Easier said than done am I right?
Humans are simply hard-wired to fight us every step of the way when it comes to saving money. Our Brains have a difficult time separating what is good for us later and what makes us feel good now. That’s why so many people have shopping habits and impulse controls.
Everyone spends money on something that makes them feel good and to each their own. But when it comes to saving money you gotta get to know yourself and what triggers you to pull out your wallet. Because ultimately that will have the most crucial role in your saving habits.
EXTRA BONUS TIP:
A personal Strategy that I like to use is this. Whenever I want to make a materialistic purchase. (The stuff we don’t really need) I like to invest the same amount of money in the stock market. This way The price of whatever I want automatically doubles and makes me second guess if I want it or the dopamine rush I get from clicking buy.
I hope you learned something in today’s post and that you can take some of these tips and tricks out into life with you and I hope to see you all tomorrow!
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