And, here are five of the best money saving tips from psychological research…
Best Ways to Save Money – 5 Money Saving Tips That Work
1. Tell your family, friends, and coworkers that you’re saving money. You’re more likely to save money if you share your plans. Research shows the greater the public declaration, the more motivated people are to achieve their goals. So, the more people you tell about your money goals, the higher the chances that you’ll succeed. Your “peeps” will support you when you falter, and they can even make your money goals seem easier! Research from the University of Plymouth shows that when people are at the bottom of a hill with friends, they estimate that it’s easier to climb than if they’re alone. It’s the same thing with saving money: you increase your chances of saving more and spending less money if you surround yourself with people who support you.
2. Create a plan to save money. Remember my suggestion to set specific and concrete money saving goals? This is practically guaranteed to work: “Those moving aimlessly through life are unlikely to end up suddenly starting a new business or losing a significant amount of weight,” writes Richard Wiseman in 59 Seconds: Change Your Life in Under a Minute. “Successful participants broke their overall goal into a series of sub-goals and thereby created a step-by-step process that helped remove the fear and hesitation associated with trying to achieve a major life change. These plans were especially powerful when the sub-goals were concrete, measurable, and time-based.”
3. Put your plans to save money in writing. I read a lot about money, love, and success, and one thing that keeps coming up is the importance of writing your goals down. Commiting your financial plans to paper (which isn’t the same as creating a household budget) is one of the best ways to save money because it makes them more real and achievable. This increases the chances you’ll successfully save money. It’s also important to make a list of each of your sub-goals. For instance, if you want to save $10,000 for a new house, write down a money saving plan that sets milestones every $100.
4. Keep reminding yourself of the benefits of saving money. One of the best ways to save money is to look forward to a positive future. Here’s what the research shows about weight loss motivation — which also applies to money saving motivation: “When looking at weight loss, successful participants might remark on how good they will look and feel when they drop a dress size, whereas unsuccessful participants might talk about how not losing weight will mean continued unhappiness about their appearance,” writes Wiseman in 59 Seconds.
5. Reward yourself when you succeed at your financial sub-goals. “As part of their planning, successful participants ensured that each of their sub-goals had a reward attached to it,” writes Wiseman in 59 Seconds: Change Your Life in Under a Minute. “Often it was something small, and it never conflicted with the major goal itself…but nevertheless it gave them something to look forward to and provided a sense of achievement.” This can be a fun financial tip for couples — maybe you can celebrate with intimacy and love!
What do you think of these ways to save money? I welcome your comments below…