How to Trick Yourself into Saving Money
Unsplash Saving money isn’t always easy, especially when you’re bombarded with temptations to spend at every turn. But here’s the thing – if you want to achieve your financial goals, you’ve got to get creative. Sometimes, the best way to save is to trick yourself into doing it. I’m not talking about anything shady or illegal here, just some simple mind hacks that can help you stash away more cash without feeling like you’re sacrificing everything. So, if you’re ready to boost your savings and take control of your finances, read on for 12 ways to trick yourself into saving money.
Automate your savings.
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One of the easiest ways to save money is to take the decision-making out of your hands. Set up automatic transfers from your checking account to your savings account each payday, so you never even see the money you’re saving. Start small, with just a few bucks per week, and gradually increase the amount over time. You can even set up separate savings accounts for different goals, like a down payment on a house or a dream vacation. By automating your savings, you’ll be amazed at how quickly your money grows without you having to lift a finger.
Use cash instead of credit.
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Credit cards make it way too easy to overspend, because you don’t feel the immediate impact of your purchases. To trick yourself into saving, try using cash instead. At the beginning of each week, take out a set amount of cash for your discretionary spending – things like groceries, entertainment, and eating out. Once the cash is gone, that’s it – no more spending until next week. This strategy forces you to be more mindful of your purchases and helps you avoid the temptation to swipe your card for every little thing.
Round up your purchases.
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Here’s a simple trick that can add up to big savings over time: whenever you make a purchase, round up the amount to the nearest dollar and transfer the difference to your savings account. For example, if you buy a coffee for $3.50, round up to $4 and put the extra 50 cents in savings. You can even automate this process with apps like Acorns or Digit, which will round up your purchases and invest the spare change for you. It might not seem like much at first, but those small amounts can really add up over the course of a year.
Gamify your savings.
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Saving money doesn’t have to be a chore – you can make it fun by turning it into a game. Set a savings goal for yourself each month, and reward yourself with a small treat or experience when you hit it. You can even compete with friends or family members to see who can save the most. Another way to gamify your savings is to use a savings app with built-in challenges and rewards, like Long Game or Qapital. These apps let you earn points or prizes for reaching your savings milestones, which can be a great motivator to keep going.
Trick yourself with a “savings tax.”
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Whenever you splurge on a non-essential purchase, like a new gadget or a fancy dinner out, impose a “savings tax” on yourself. This means setting aside a percentage of the purchase price – say, 10% or 20% – and transferring it straight to your savings account. For example, if you buy a $100 pair of shoes, put an extra $10 or $20 in savings as a “tax.” This strategy helps you balance your spending with your saving, and makes you think twice before making impulse purchases.
Use a savings jar.
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Sometimes, the simplest tricks are the most effective. One old-school way to save money is to use a good old-fashioned savings jar. Whenever you have spare change or small bills, drop them in the jar instead of letting them jingle around in your pocket or purse. You can even make it a game by setting a goal to fill the jar by a certain date. Once the jar is full, take it to the bank and deposit the money into your savings account. This trick is especially effective for those who tend to fritter away small amounts of cash without realizing it.
Trick yourself with a “24-hour rule.”
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Impulse purchases are the enemy of saving, but sometimes it’s hard to resist the temptation to buy something on the spot. To trick yourself into saving, try implementing a “24-hour rule” for any non-essential purchases over a certain amount, like $50 or $100. This means waiting at least 24 hours before pulling the trigger on a purchase, to give yourself time to really think about whether you need or want the item. Often, the initial excitement will wear off and you’ll realize you can live without it – and save the money instead.
Use a budgeting app.
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One of the best ways to trick yourself into saving is to use a budgeting app to track your spending and set savings goals. Apps like Mint, YNAB (You Need a Budget), and PocketGuard can help you see exactly where your money is going each month, and identify areas where you can cut back and save more. These apps also let you set up savings goals and track your progress over time, which can be a great motivator to keep going. By seeing the big picture of your finances, you’ll be more likely to make smart choices and prioritize saving.
Trick yourself with a “savings match.”
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If you’re lucky enough to have an employer that offers a 401(k) match, take full advantage of it. This is essentially free money that can supercharge your savings over time. But even if you don’t have a 401(k), you can still use the concept of a “savings match” to trick yourself into saving more. Here’s how it works: for every dollar you save, match it with an equal amount from your own funds. So, if you save $50 from your paycheck, transfer an additional $50 from your checking account to your savings account. This trick helps you double your savings rate without feeling like you’re sacrificing too much.
Use a high-yield savings account.
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If you’re going to save money, you might as well make it work for you. Instead of keeping your savings in a traditional bank account with low interest rates, consider opening a high-yield savings account with an online bank or credit union. These accounts typically offer much higher interest rates than traditional banks, which means your money will grow faster over time. Some of the best high-yield savings accounts currently offer interest rates of 1% or more, which can really add up over the long haul. By making the switch, you’ll be tricking yourself into earning more money on your savings without any extra effort.
Trick yourself with a “no-spend day.”
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One simple way to trick yourself into saving money is to designate one day a week (or even one day a month) as a “no-spend day.” On this day, challenge yourself to avoid spending any money at all – no groceries, no gas, no online shopping, no nothing. Instead, focus on using up what you already have in your pantry or freezer, finding free entertainment options, and enjoying the simple pleasures in life that don’t cost a dime. Not only will this help you save money in the short term, but it can also help you develop more mindful spending habits over time.
Use a savings template.
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If you’re a visual person, using a savings template can be a great way to trick yourself into saving more. A savings template is basically a worksheet or spreadsheet that helps you map out your savings goals and track your progress over time. You can find plenty of free savings templates online, or create your own using a program like Excel or Google Sheets. By breaking down your savings goals into smaller, more manageable chunks and tracking your progress visually, you’ll be more motivated to stay on track and reach your targets. Plus, seeing your savings grow on paper (or on screen) can be a great psychological boost.
