Contents
The ability to save is important not only during a crisis. Those who are sensible about their consumption demonstrate greater firmness in the way of achieving their goals. How to learn how to save correctly — not only money, but also willpower?
How to learn to save the family budget, save money, spend the accumulated funds wisely? The most impeccable plans may not resist the temptations that surround us. The ability to put off momentary gratification for future gains is at the heart of most successful hoarding strategies. But even this skill can fail from time to time. If we want to understand how to learn how to save money, we need to learn to anticipate these dangers.
Psychological studies have revealed a paradox: wealthy buyers, when going to the store, as a rule, take exactly what they need, but for less wealthy buyers, shopping is more often accompanied by additional expenses (for food, drinks, things they like)1. It would seem that everything should be the other way around: the less money we have, the more we will think before buying something extra.
But in fact, it is constant thinking and difficult decisions that make us more vulnerable to temptations.
Our willpower acts like a muscle. We can tense the muscles for some time, but then they need to rest. Willpower works the same way: the more difficult and unpleasant decisions we make, the more difficult it is for us to make each next decision. Low willpower leads to a loss of self-control — and then even a small mood swing can make us take a rash act.
The key to becoming frugal is knowing how your willpower works. The recommendations were compiled by the authors of the report «Stress in America» («Stress in America: Paying With Our Health», 2015), published on the website of the American Psychological Association.
5 savings principles
Make one decision at a time
Leave gaps between important financial decisions. Trying to pay off all your debts in one day can overexert your willpower and weaken your self-control.
Track your spending
Keep a daily spending diary where you record when and where your money goes.
Get in the habit of procrastinating
Create a bank or investment account to which funds will be automatically transferred. This will allow you to make fewer decisions and not waste your internal resources.
Avoid temptations
Avoid malls and galleries. Think of other ways to spend the time you usually spend on shopping. Carry only the amount you are willing to spend. It is better not to take credit cards with you unless necessary.
Seek Support
You are more likely to stick to your plan if you have your own «support team». Surround yourself with trusted people who will bolster your willpower and inspire you towards your goals.
1. The B.E. Journal of Economic Analysis & Policy, 2011, vol. 11, № 1.