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6 Fascinating Mind Tricks That Help You Save Money

Psych Yourself Rich 

Putting money aside seems pretty straightforward. But, seeing as the average personal-savings rate is just 5.7 percent (compared to 11 percent two decades ago), it’s definitely easier said than done. “We like to think of ourselves as rational when it comes to finances, but our decisions are shaped by psychological and emotional triggers,” says financial behaviorist Jacquette M. Timmons. 

Focus on Why You Want to Save — Not Just How

If you want to sock away more cash, coming up with specific ways to accomplish your goal sounds like a smart idea, right? But a study published in the Journal of Consumer Research counteracts that notion. It found that people who honed in on the reasons why they wanted to put aside money (so you’ll be able to go on that safari you’ve always dreamed of, afford to buy your own home or retire comfortably) saved more than participants who concentrated on developing specific techniques for how they’d cut back — say, by going shopping less often.  

Harness Your Power 

The more powerful you feel before making a financial decision, the more money you’ll stash, according to research from Stanford University. Before sitting down with your financial advisor or heading on a shopping trip, think back to a time in your life when you felt on top of the world. Maybe you successfully asked for a raise, scored a promotion or even spoke up about an issue important to you. “People who feel powerful use saving money as a means to maintain their current state of power,” concluded the study authors. 

Put It In Writing

Here’s one tiny tweak that can make a huge difference in whether or not you achieve savings success: Rather than just thinking about your savings goals, jot them down. Research from Gail Matthews, PhD, of Dominican University found that people who wrote down their goals were significantly more successful at achieving them than those who simply pondered them. Sixty-one percent of the “writers” accomplished their objectives, compared to only 43 percent of the “thinkers.”  

Make Saving Pleasurable (Seriously!) 

Cutting back, spending less, being frugal…yeah, doesn’t sound like a heck of a lot of fun, does it? “We associate saving money with feelings of deprivation, with having to pass up things that we love,” explains Timmons. “And that doesn’t give us much impetus to follow through.”

So, try to make the blah process as enjoyable as possible and you’ll be galvanized to stash more cash. Begin by creating a monthly ritual for evaluating your savings that you might actually look forward to. Slip into cozy slippers, light a few candles and pour yourself a cup of tea for example. While we’re at it, try to go through your investments at the same time and place — say, the last Sunday of the month at your kitchen table — rather than doing it on the fly.  

Plan a Money Date 

It’s temptingly easy to put off your savings goals when you only have yourself to answer to.  But Matthews’ research shows that people are much more likely to follow through if there’s someone else holding them accountable: A whopping 76 percent of study participants who submitted weekly progress reports to a supportive friend were successful.  

Source: Daily Worth