Like many habits in life, saving is a matter of psychology and how we really, through our mentality, function day by day in the things we do and in the habits we have.
Therefore, it is helpful to know specific hacks, which are simply strategies to motivate us to do things that can be a bit difficult, understanding and mastering our psychology.
In this case, I want to share five hacks to truly boost the habit of saving your life without making it so difficult.
Hack # 1: Think Consciously About Your Financial Freedom
The truth is that many people wonder what to save for, and there could be many ways to answer this question.
Some people want to save for a vacation or to buy something they want, and others want to save for retirement and have a good pension in their golden years.
Other people suddenly think much more in the short term and want to save to enjoy the weekend or the end of the month.
Be that as it may, we new should not have a single category or class of savings in a single bag, in which we put all the money we want to save and have, as they say, a one-dimensional savings goal.
We can have different categories, quantities and types of things. Still, it is vital that, even if we save on the one hand for the holidays, for the weekend, on the other hand for the end of the year celebration, and the other hand for the retirement, that we always keep the objective in mind of freedom and financial independence, in which saving is essential.
If I don’t have a good saving habit, it won’t be easy that even earn vast amounts of money, and I can indeed be financially free.
This is where it becomes essential to put aside that mentality that ” I can die tomorrow and then I did not enjoy the money for which I worked so hard “; and to think that if I do things well, the easier it is for me to become an old man. If I make bad decisions new with my money, that’s where I’m going to suffer.
And to separate, in the present, the money in a way that I can manage it, knowing that it is worth it. So I’m going to explain that part a little more in detail.
Hack # 2: Always Set Some Money To Enjoy
Why do many people not save? Because they think they are going to die tomorrow and will not enjoy the money.
So, if they take out some money to enjoy and then they have nothing left, after all their expenses, they say ” I make very little money “.
Yes, they make little money, but at the same time, we see them spending on things that could be considered unnecessary.
So it’s not about eliminating entertainment, fun, or hanging out with friends entirely, but giving a proportion of your income to that category and practically forcing you to spend all the money you allocate for that purpose.
If, for example, you are taking 10% for your fun, and in a month there were no opportunities to spend that 10%, then force yourself to do so, or at least save and accumulate twice as much for the following month and have 20% of what you you win in a month to enjoy. And do it without remorse and without feeling bad.
Now, if it turns out that 10% is a lot, according to your ideas, mentality, or whatever, you can reduce it. Or if it is very little, suddenly you can increase it with some care as long as you can still be able to save whatever amount is possible.
Hack # 3: Recognize Your Financial Whims
The truth is that we all have occasional financial whims, something else we want to spend our money on. And if we had unlimited money, we would spend it on that in amounts.
For example, it can be questions of makeup, clothes, and shoes; for men, it could be cars or anything else. Well, I’m stereotyping a bit.
At least I love photography. I could buy every new lens that comes out for my camera; or every new camera that comes out of the same brand.
And this can turn into a death trap and a black hole that sucks up all of our money. So recognizing that makes us aware of two things:
1. What are the things that I like and that I should allocate some money to those things anyway, and eventually progress and increase my income so that these things become a reality in my life. Otherwise, why financial freedom and independence without enjoying those hobbies that genuinely make me happy (without obviously falling into materialism).
2. Know that I may fall into the trap of overspending when I can’t, of buying things that won’t earn me a penny, and even getting into debt for them.
As it happened to me new several years ago, when I was buying more, and I was shopping outside my budget, without paying much attention to how much money I was spending. Eventually, I ended up in debt.
This is a matter of understanding oneself, of knowing what are the things that one wants and sometimes saying, « ok, this, for now, I am not going to do it because (again taking into account the first hack) I am very aware of my goal of achieving,g the fi, financial freedom «.
And wondering in what other ways I could fulfil that desire and be creative about it. Say, in different ways.
Hack # 4: Save No Matter How Much You Earn
And this goes for all those people who tell me, « I don’t earn enough money to save; all my money goes to the basics. I make just what I need to survive.
To those people, I say: saving is a habit. So if you don’t carry it out in a month, you don’t carry it out the next month, you don’t carry it out the next month, you don’t have the habit.
But if you save any amount this month, and you save any amount in the next month, and you do so year after year, you have a habit that will not be broken, and it is not going to end.
And guess what happens to people who get used to saving money, regardless of the amount of income they earn …
Well, these people eventually, if they are so conscientious and have such good habits as to save every month, they will be able to save more money; they will get a better job, do a business, do whatever it takes to earn them income.
And if they have already had the habit of saving, then now they will have the ability to save even more.
We can start like this either with 1% of what we earn, or with 5%, or with 10%, and it does not matter if that percentage is a dollar or half a dollar.
No matter the amount, because saving, and the true power of saving (and this is where the word “hack” comes from), actually hacking our brain and our psychology comes from the habit of doing it, not from the amount, not from what you already have a million dollars in your savings account.
The amount has nothing to do with it, and you shouldn’t be comparing yourself to other people with their savings goals and achievements right now, even if they are younger than you.
Just focus on developing that financial muscle, because once you have created it, the safest thing is that over time you can overcome, through perseverance, through patience and through a good habit, even people who are making a lot of money but they are spending it all.
Because there are people who earn $ 5 or 10 thousand dollars a month and still say that they do not have a penny left to save because they got used to a lifestyle of throwing away all their money, spending it without thinking about the future.
Hack # 5: Keep Your Budget Updated
Now, there is something critical in this budget subject, and that is what the book ” The Richest Man in Babylon ” speaks to us: to pay you first.
What does this mean? That when I receive my income, I separate an amount that, as I already mentioned, we can save in different categories and distribute it as we want.
But let it be simply an amount to save. And pretend that our total income was not all we received but what we had left after taking out the savings.
If, for example, I am separating 10% of everything that I earn, I must assume that what I am making is 90%, and with that, I have to solve my life around that amount.
So I plan a budget that considers the costs of living, the basic expenses of housing, food, utilities and so on, with only 90%.
When you spend it and everything else, how you distribute that saving is another matter.
But it is about that your budget is prepared for everything you need to cover in the month, and you have the money for absolutely everything, even leaving a portion to save.
It may seem a bit strict, a bit mathematical and gridded to do it this way …
However, people who don’t do it that way don’t get excellent results in the long run.
Perhaps they will save an amount in a month; they will suddenly receive something extra and put it away in another month. But eventually, that habit fades over time, flags, and they end up simply spending those savings and not staying with the pattern. And that would be the essential thing.
The budget is something that we must update at least every six months. Preferably every three months, depending on the situation, assuming it is not changing much. If it is changing at all times, well, every month.
This is the general idea of having a budget, which tells us exactly how to distribute our money.
Because, being aware of the amounts and focusing on managing them correctly, we will have better control and make sure we can save, even if it is minor, knowing that habit is what helps us.