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Even with the best of intentions, many of us find ourselves swiping our debit card or clicking “buy now,” then wishing we had that money back later. When you’re trying to increase your savings, some of the biggest obstacles to progress can be found within yourself. Fortunately, a few simple mind hacks can turn the tables on unhelpful financial habits.

Make It Harder to Spend

Every day, we encounter many opportunities — and lots of encouragement — to spend money. Advertisements urge us to purchase, online shopping makes it instant and delivery services make it convenient. One of the keys to saving, for many, is removing temptation, which means knowing your triggers. If you thirst for thrift, stay out of your usual bargain-hunting grounds and avoid the discount aisle at all costs. Also steer clear websites with deal countdowns and other pressures to “buy now.” Shop with a list, and stick to it.

You also may need to explore your feelings around spending. Studies show that we often spend more when we’re stressed. So if you engage in too much retail therapy, set yourself up for success by choosing a relaxing, free activity like reading a book, meditating or taking a walk instead. Shopping with cash rather than credit can also help put the brakes on instant gratification — plus, you’re forced to stop when your wallet is empty. And even waiting 24 hours after first spotting something temping can help you figure out if you really want or need it — or if it was merely the urge to splurge.

Make It Easier to Save

Simplifying your savings routine and minimizing obstacles can also be helpful. A lot of the time, the way we save money is through an active process — we go over our accounts and set aside a certain amount each cycle. Try making saving automatic instead. Start by setting up auto-deposits into your savings account and have contributions automatically deducted from your paycheck and deposited into your employer-sponsored retirement account.

Make Saving More Rewarding Than Spending

If you’re the competitive type, sometimes a little challenge can be just what you need to get into a money-saving mindset. Setting savings goals and visualizing them with a vision board, spreadsheet or chart can help keep you motivated. Or turn savings into a game. One study by the financial assistance nonprofit Commonwealth showed that people who used a gamified savings app that lets them complete challenges and earn badges saved 25% more than others.

Hack Your Habits

Saving money is a gradual and lifelong process — and it takes commitment and consistency. No matter what strategies and hacks you choose to help you save, the best thing you can do to increase your savings is whatever you’ll stick to. Find the methods that work for you, and over time you’ll be able to hack your mindset, build good financial habits and reboot your savings.

Sources

https://bigthink.com/neuropsych/impulse-buying/

https://www.forbes.com/advisor/banking/how-gamification-can-help-you-meet-financial-goals/#:~:text=Many%20apps%20with%20gamified%20elements,save%20more%20than%20%245%20billion

Saving for retirement is very important, but many people feel that they can’t spare the money to participate in a retirement plan or even create a basic savings account. Retirement plan consultants suggest that the first step is to create a budget. Once you figure out where your money is going, you can look for ways to save more.

Track your spending -

There are a number of ways to create a budget, but one of the easiest ways to get started is to simply record everything you spend. A notebook works just fine, but you can also use your phone or other device. The key is that it needs to be portable, and you need to note every time you spend money, even on cups of coffee or snacks. Many people find this to be an eye-opening experience, since they don’t realize how much spending they actually do. It’s becoming much easier to swipe a card or even use digital payments, so you don’t always have the sensation of handing away your money.

Once you’ve collected at least a month’s worth of information, you can start creating your budget. At this point a spreadsheet or an online budgeting program could be very helpful. Ideally, you should be able to divide your expenses into three categories:

Fixed Expenses -

These are regular payments you make every month, like house or car payments, or electric and utility bills. Make sure you include any subscriptions, like moving streaming services or gym memberships

Flexible Expenses -

These are expenses that vary from month to month, like entertainment,gasoline, groceries, hobbies, or other bills that change every month. Some of these are necessities, like groceries or gas, but you can still control how much you spend on food(groceries versus dining out, for example) or gas (by sharing rides, walking, or biking instead).

Financial Goals

These are expenses that are important for your future. Paying down credit card bills or saving for a down payment on a home are two examples. You should definitely establish an emergency fund for unexpected expenses, like car or home repairs, and start saving for retirement.

Start making changes -

Once you’ve established your baseline budget, you can start looking for ways to trim your flexible and fixed expenses, and use those funds for your financial goals. Can you pack a lunch more often instead of eating out? Can you make your own coffee instead of buying a cup each day? And remember, fixed expenses aren’t always “fixed” – can you eliminate some subscriptions, reduce your utility bills, or make other changes to free up money?

Paying down high-interest debt and establishing an emergency fund are key goals, but remember that you also need to save for retirement. If your employer offers a tax-advantaged retirement plan, like a 401(k), you’ll want to take full advantage of it as soon as possible. Starting now gives your money more time to grow through compounding, and will help put you on the road to a successful retirement.