In a world where every second financial guru advises you to keep detailed records of your expenses, we suggest looking at savings from a different angle. What if we told you that you can effectively save money without writing down every penny every day? Sounds incredible? Let's find out.
Why does our brain protest against savings?
Before we get to the practical advice, it's important to understand why saving is so difficult. And it's not about weak willpower, but about the way our brains work.
1. The Future Me Effect: When Tomorrow Becomes Today
Imagine this: a week before a conference, you are offered a choice of snack: a banana or a chocolate bar. 74% people choose the banana, of course, being very concerned about their health. But when day X comes, and they have both options, 70% still grab the chocolate bar. Why does this happen?
Our brains tend to idealize the “future me.” We sincerely believe that tomorrow we will start saving money and starting Monday we will start eating right. But when “tomorrow” comes, we remain the same people with the same habits.
Life hack: Plan your savings in advance when you are optimistic about your future. Set up automatic transfers into a piggy bank (envelope, jar, etc.) as soon as you get your paycheck.
2. Inertia: why we keep paying for unnecessary subscriptions
Have you ever noticed that you keep paying for a streaming service subscription that you don't use? You're not alone. Studies show that 54% people don't cancel their subscriptions after the free trial period ends and continue to pay for an average of two years!
This is a prime example of the power of inertia. It's easier for us to keep doing what we're already doing, even if it's not beneficial.
Life hack: Use the power of inertia to your advantage. Make the savings process as automatic as possible, and make it difficult to cancel. For example, open a deposit with automatic replenishment that can only be canceled by visiting the bank in person.
3. Loss Intolerance: Why Spending is More Pleasure Than Saving
An interesting experiment with monkeys illustrates this phenomenon. When monkeys were given one apple each, they calmly ate it. But when they were first given two apples and then one was taken away, the monkeys showed signs of severe stress, even though they were left with the same one apple.
Humans are not much different from apes in this regard. We perceive losses as about 2-2.5 times more strongly than equivalent gains. This is why putting money away often feels like a “loss,” even though it is actually an investment in the future.
Life hack: Change your perspective. Instead of thinking of saving as a “loss” of money now, visualize it as a “gain” in the future. Create a visual representation of your financial goals – a collage, a graph, or even an Instagram account dedicated to your financial achievements.
Life hack #2: Invest. Buying assets can be as enjoyable as shopping. With a smart approach to investing, you will look forward to the time each month when you can set aside and invest money by buying a new asset.
Practical strategies for painless savings
Now that we understand psychological barriers, let's look at specific strategies to help overcome them:
1. The “Pay Yourself First” Rule
Instead of waiting until the end of the month and saving what's left, flip that logic. Set up an automatic transfer of a certain amount to a separate account as soon as your paycheck arrives. Live on what's left.
2. The “invisible” money method
Use bank rounding programs. Every time you pay with your card, the amount is rounded up and the difference is automatically transferred to your savings account. You may not even notice these “invisible” savings, but over time they can add up to a significant amount.
3. The 30-Day Challenge Game
Before making a big purchase, wait 30 days. Write down the desired item and the date. If after a month you still want to buy it - go ahead. It often turns out that the impulsive desire disappears, and the money remains in the account.
4. The “financial fasting” technique
Choose one day a week, or even a week a month, when you spend absolutely nothing but the bare necessities. This will not only help you save money, but it will also increase your financial awareness.
5. The “multiple envelope” method
Create several savings accounts for different goals: “Dream trip”, “New laptop”, “Freedom fund”. Divide your savings between these accounts. This will make the savings process more focused and motivating.
Conclusion: from savings to financial freedom
Regular savings aren’t just a way to save for something specific. They’re the foundation of your financial freedom. By starting small and using psychological tricks, you can gradually increase your savings percentage from 10-20% of your income to 50-60% of your income without even experiencing significant discomfort.
Remember: the most important thing is to start. Even if you save only 11% of your income, you are already on the path to financial stability. Over time, using the methods described above, you can gradually increase this percentage.
And who knows? Maybe in a few years you will smile and remember the times when you thought saving was difficult. Because in fact, it is not only useful – it can be exciting and even fun!