Learning how to save money can be hard if you weren’t taught any great habits when you were younger. Spending money is a major factor that is affected by how our mind works, and knowing the psychology tricks behind this puts you a step ahead in the money saving game. I’m going to give you 7 psychological tricks you can apply in your life to save more money each month. When you go out to eat somewhere, or buy groceries, or just to buy things, try to use cold hard cash instead of a debit card or check. When using cash, you have an emotional attachment to the physical material paper. I also recommend setting up a savings account and having at least 5% of your earnings go directly to that account.
“If you can’t measure it, you can’t manage it” was said by the famous Peter Drucker, and it’s 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. Creating a budget and sticking to it can be difficult as first, but as you practice and stay persistent, that bank account will continue to grow each month.
If you’re saving money because you want to buy something, you the best advice I can give you is to focus more on how you can increase your income. Simply focusing on how you can make more money will help dramatically more than focusing on reducing your expenses.
The Software I use: