How to Trick Yourself Into Saving Money - Escient Financial (2024)

How to Trick Yourself Into Saving Money - Escient Financial (1)

The stats don’t lie. Many of us have trouble saving. Approximately 37 percent of people would not be able to cover an unexpected $400 expense without either selling something or borrowing money.While that number is actually an improvement from 50 percent of adults in 2013, it still shows that it's important to save where we can. The problem is that spending is easier (and often more gratifying in the short term) than having money sitting on the sidelines. The best way to save more? Trick yourself. Here are five tricks you can employ to help you save more of your money.

Trick #1: Automate Your Savings

One of the best ways to save your money is to forget it’s even there. Take willpower out of the picture by setting up an automatic transfer from your checking account to wherever - savings, a retirement account, etc. Every month after your paycheck is deposited, your bank or brokerage can automatically transfer over a lump sum of your choosing without any interaction needed. After a while, you may completely forget that you’re even saving money, meaning there’s much less temptation to spend it instead.

Trick #2: Name Your Savings Accounts

Don’t underestimate the power of giving your money a name or meaning. Setting up subaccounts for specific savings goals can be effective, especially if you rename each account to the goal you’re saving for. Think about it, which would be harder to take money out of? Savings or 10 Year Anniversary Trip? Directly connecting your savings with your goals can help deter you from wanting to spend your money.

Trick #3: Find a Personal Budget Software App

You likely don’t have the time (or desire) to sit down and track your spending manually. But with today there are plenty of personal budgeting apps that can sync your accounts, track your spending in real-time, and automatically develop a budget to help you save. Giving a visual overview of your spending and saving habits can be a real eyeopener, making it easier to understand how much you’re really spending and where you have opportunities to save. If you happen to be an Escient Financial client you have access to budgeting tools built right into the financial planning software on your computer via the web or via a mobile app.

Trick #4: Divert Payments

An important part of building up your savings may include canceling unused memberships or subscriptions, cutting the cable cord, or paying off loans like car payments, student debt, and more. However, if you’re not diverting that now “unclaimed” portion of your paycheck into savings, you’re just as likely to spend it elsewhere. Find out just how much you were previously spending on these payments or subscriptions, and then set up automatic payments to a savings or retirement account, or stick that money in an envelope to build-up your cash emergency fund.

Trick #5: Don’t Spend Your Pay Raise

This one can definitely feel hard to do, but it can be another great “out of sight, out of mind” trick to use if you’re able to afford it. Say you’re living on what you’re already making, but receive a bump in your salary of 10 percent. Instead of increasing your monthly spending because you can, consider diverting a portion of it into a savings or retirement account. For example, you could incorporate a certain amount, say five percent of the 10 percent raise, into building up your monthly budget, but automatically roll over the other five percent into a separate savings account. This allows you to enjoy a modest boost in both your monthly spending and your savings.

(Bonus) Trick #6: Don’t Spend Your Tax Refund

This one may also seem difficult to do, especially if you happened to receive a fairly large tax refund. It may be tempting to use that tax refund for a larger purchase, especially if it's something you've been waiting for. However, that tax refund could turn into greater rewards if saved or invested. Of course, another option would be to spend some of the tax refund, and it could be very beneficial to pay down any debts, but try to save or invest as much of it as possible.

Saving money can feel like such an impossible task to do, especially when the temptation to spend has gotten so high. Using these tips and tricks, you and your family can work toward automating your savings, developing healthy money habits and seeing your money grow. Escient Financial can help you find the best ways to spend less, save more, and find the a path to achieving your goals with a comprehensive financial plan. Go ahead and...

How to Trick Yourself Into Saving Money - Escient Financial (2024)

FAQs

How to Trick Yourself Into Saving Money - Escient Financial? ›

Canceling unnecessary subscriptions and automating your savings are a couple of simple ways to save money quickly. Switching banks, opening a short-term CD, and signing up for rewards programs can also help you save money. Making a budget and eliminating a spending habit each day can help lead to long-term savings.

How do I force myself to save money? ›

Canceling unnecessary subscriptions and automating your savings are a couple of simple ways to save money quickly. Switching banks, opening a short-term CD, and signing up for rewards programs can also help you save money. Making a budget and eliminating a spending habit each day can help lead to long-term savings.

What is the 50/30/20 rule? ›

The rule is to split your after-tax income into three categories of spending: 50% on needs, 30% on wants, and 20% on savings. 1. This intuitive and straightforward rule can help you draw up a reasonable budget that you can stick to over time in order to meet your financial goals.

What is the 30 day rule? ›

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

What is the trick to saving money? ›

Set a savings goal.

Sometimes the best way to save money is by setting a savings goal—a specific dollar amount with a set deadline. You can try the 100 Envelope Challenge and hit a $5,050 goal or use one of our savings trackers and fill in whatever amount you want.

How do I stop struggling financially? ›

In this article:
  1. Identify the problem.
  2. Make a budget to help you resolve your financial problems.
  3. Lower your expenses.
  4. Pay in cash.
  5. Stop taking on debt to avoid aggravating your financial problems.
  6. Avoid buying new.
  7. Meet with your advisor to discuss your financial problems.
  8. Increase your income.
Jan 29, 2024

Is $4000 a good savings? ›

Ready to talk to an expert? Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.

How much should a 30 year old have saved? ›

If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary.

What is the 75 15 10 rule? ›

In his free webinar last week, Market Briefs CEO Jaspreet Singh alerted me to a variation: the popular 75-15-10 rule. Singh called it leading your money. This iteration calls for you to put 75% of after-tax income to daily expenses, 15% to investing and 10% to savings.

What is the 9o day rule? ›

What is the 90-Day Rule? According to the 90-day rule, a foreign national who engages in conduct inconsistent with their nonimmigrant status within a 90 day period of entering the U.S. may become inadmissible for the green card or even permanently barred from entering the US.

What is the wash sale rule? ›

Q: How does the wash sale rule work? If you sell a security at a loss and buy the same or a substantially identical security within 30 calendar days before or after the sale, you won't be able to take a loss for that security on your current-year tax return.

What is the 3 month rule? ›

The 3-month rule in dating refers to the time period some say is needed to understand if the other person is right for you and that after the 3 months are up, you'll be able to know if the relationship is worth pursuing further.

How to aggressively save money? ›

Tips for Building an Aggressive Savings Plan
  1. Paying Yourself First. ...
  2. Getting Out of Debt. ...
  3. Tracking All of Your Spending. ...
  4. Utilizing a Budgeting Method. ...
  5. Cutting Down Expenses. ...
  6. Opening a High-Yield Savings Account. ...
  7. Starting a Side Hustle. ...
  8. Avoiding Eating Out at Restaurants.
Sep 21, 2022

How do I stop living paycheck to paycheck? ›

7 Steps to Stop Living Paycheck to Paycheck
  1. Start by Creating a Budget. If you don't already have a budget, now is the perfect time to create one! ...
  2. Cut Expenses and Increase Income. ...
  3. Build an Emergency Fund. ...
  4. Stop Accruing Debt. ...
  5. Open a High-Yield Savings Account. ...
  6. Join a Credit Union. ...
  7. Use Free Financial Wellness Resources.

How can I intentionally save money? ›

Tips to start intentionally saving and intentionally spending.
  1. Determine what's your goal. ...
  2. Understand where and what you're spending your money on and reflect. ...
  3. Work out if you can realistically achieve your goal and readjust your spending (without sacrificing too much) ...
  4. Unintentionally save intentionally.

How do I motivate myself to save money? ›

Here are six ways to stay motivated to save—so you can stick with it for the long haul.
  1. Start With Your Goals. ...
  2. Save Smarter, Not Harder. ...
  3. Try a Money-Saving Challenge. ...
  4. Save With a Friend. ...
  5. Get Inspired by Others. ...
  6. Celebrate Your Progress. ...
  7. Slow and Steady Wins the Race.
Jul 10, 2023

Why is it so hard for me to save money? ›

Saving money is hard. One of the most common reasons is that you might not have a good enough reason to save. Maybe you're overly focused on the present, or maybe you simply don't know what you want in the future. Either way, you need to get a vision for what you want to achieve with your money.

How do I force myself to stop spending money? ›

How to Stop Spending Money
  1. Know what you're spending money on. ...
  2. Make your budget work for you. ...
  3. Shop with a goal in mind. ...
  4. Stop spending money at restaurants. ...
  5. Resist sales. ...
  6. Swear off debt. ...
  7. Delay gratification. ...
  8. Challenge yourself to reach your new goals.
Apr 5, 2024

How do I train myself to save money? ›

6 ways to train your brain to save money
  1. Envision the future. ...
  2. Appreciate what you already have. ...
  3. Delete and unsubscribe. ...
  4. Only use money you've already got in the bank. ...
  5. Create separate savings accounts for separate expenses. ...
  6. Call your friends more often.

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