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5 Psychological Money-Saving Tricks

psychological tricks for saving money

Who does not want to save money? Anyone would like to see a couple of hundred bucks in their bank account at the month-end, just sitting there smelling of financial security. But let’s face the truth – we all find it hard to reach that state. If anything, most of us are struggling with the remaining cash and waiting for the next paycheck to arrive impatiently. However, you do not have to beat yourself for not having an empty wallet next month because these psychological money-saving tricks really work. Pick your favorites and start practicing right away.

1. Pay by Cash

This one is nice and simple yet super effective. We are often way too liberal in our use of credit cards, and there is a good reason behind that. When we swipe our cards to pay for something, it does not impact the cold, hard cash in our pockets.

Studies have proven that paying by cash is something we physically feel, and we attach more value to cash purchases. When paying by card or online – you do not see money going away from you. So, try paying by cash for all your upcoming purchases and see the difference in your bank account!

2. Price into Hours

You basically evaluate the worth of any item in terms of the number of hours you would have to work for it. This trick helps you rationalize your ‘wants.’ So, if there is a cute $70 sweatshirt, would you work 7 hours for it? Probably not.

Similarly, would you work half an hour for a hearty meal? Probably yes. By converting the price of any product or good into how many hours you will be working to pay for it – you will be able to quickly leave behind unnecessary purchases that you could totally do without.

3. Assign a Waiting Period

Always use the ‘I will sleep on it’ trick for any major or high-end purchases. Assigning a waiting period to the final decision always helps you save money. Either something better comes out in a few days, or you will find a better place to invest. This is also the best way to avoid ‘impulsive buying!’

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4. Use a Stranger Test

This is another great tip to evaluate the worth of a relatively unnecessary purchase. Imagine a stranger offering you a new video game in one hand and a hundred-dollar bill in the other. Which one would you rather have? People usually go for the money. This is a great psychological trick to help you decide where you valued truly lie and what you actually want.

5. Get an Accountability Partner

Just as it goes with fitness and studies – finding a buddy who can hold you accountable for your savings and expenditure is equally effective! In fact, pair up with someone who struggles to save themselves – this way, you both will motivate each other. From a psychological perspective, people are more regular with a habit when they have to be accountable to someone.

Which Psychological Money-Saving Tricks Will Work for You?

Saving money can be a tricky affair but not when you successfully fool your mind into doing it. Use these psychological money-saving tricks and see what an amazing difference it makes on your bank account! When you see extra money at the end of each month, the reward principle of Psychology will motivate you to keep up with the habit!

Anna Klein
Written By

Anna received her Masters degree in Journalism from the University of Maryland. Her writing focuses on financial journals, life in finance, and general lifestyle pieces. Anna has been published in various lifestyle magazines. She spends her free time in the stock market and furthering her knowledge about the financial industry.

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