Do you believe saving and budget tracking is just about numbers? Think again… It’s also about psychology and our brains. Our mind works in wondrous ways, but if we understand how it works we can trick the mind. With these 5 tricks, you’ll be able to reach that savings goal in no time!
1. Have a goal and remind yourself often
Research has shown that you’re much more likely to save if you have a specific goal in mind, say a vacation to Thailand at the end of summer. It’s important to remind yourself of your goal all the time. Change the background image of your computer and phone and put your credit card in a sleeve with a photo of your holiday destination.
2. Translate the $$ to hours
Think about the hours of work you need to do to buy what you want. Suddenly that new bag doesn’t cost you HK$500, but more than half a day of work! Thinking about it like that, is it still worth it?
3. Tell everyone what you’re saving for
A proven tactic to accomplish a lofty goal, such as running a marathon, is telling everyone around you about your plans. The same works for saving. Your friends will encourage and remind you about your goal, which is a great motivation to make it happen. And just the thought of having to tell everyone you’ve failed might be enough for you to actually make it!
4. Block your hearing and smell
We’re not sure about the effectiveness of this one, but hey it won’t hurt. Some experts suggest to go shopping with earphones on, while chewing mints. Why? One of the ways retailers try to seduce you, is by using scent and music. By isolating yourself from these influences, you might able to avoid buying unnecessary goods!
5. Become aware of your spending
Of course the list wouldn’t be complete without adding Neat into the mix. Experts state that simply being aware of every single transaction you make is key to saving. With an app, this awareness comes from the push notification you get for every transaction.
“Solutions that focus on negative reinforcement are like hacking at the branches when what we really need is to focus on the roots” Carl Richards
And those roots are your actual spending. Punishing yourself after you’ve already spent the money won’t help. Becoming aware of your spending is the first step towards reaching your goals!
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