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It’s hard to give up what we can get right now, especially when there are so many temptations around. That’s how the brain works. It is impossible to change fundamental reactions, but we can turn them to our advantage. A few simple recipes from experts.
Pass the tests
- What does money mean to you?
Keep track of expenses every day
Take a minute – just one minute! – per day, preferably at the same time, in order to compare your financial “clocks”. Teach your brain that everything you do with your money will be recorded. “People tell us that when they shop without a plan in advance, they become more emotional—they get carried away by the shopping experience,” says social psychologist Ryan Howell, author of the blog Can’t Buy Happiness. buy happiness?”). “Simply knowing that you’ll have to sit down later and write down what your money went into today already makes spontaneous and impulsive purchases more difficult.”
Read more:
- Shopping – pleasure or addiction?
Pay in cash
When we part with money, we hurt the brain – literally. Brian Knutson’s research has shown that when we look at the price tags of items we can’t afford, our brain activates the insula, a region associated with pain and disgust. But here’s what’s interesting: When we use a credit card, it causes less pain to the brain than when we pay in cash.1.
The authors suggest that this is due to how we perceive money. “When we swipe a card across a terminal, we just don’t feel like we’re missing out,” says George Loewenstein, lead author of the study. “On the other hand, counting bills and putting them on the counter, we are aware that we have become a little poorer.” Thus, by paying with cash, we give the brain a slight but sobering click.
Read more:
- Money treats us the same way we treat them.
Set yourself an inspiring goal
According to a Gallup poll, people are generally happier when they save money than when they spend it.2. Why don’t we do it then? Obviously, we do not see the point in this: when we can receive our reward now, why should we refuse it? But if a particular “carrot” looms in front of our mind’s eye, this will spur our motivation.
For example, I’m going to finally go to India or Paris. I imagine how wonderful it will be: I will finally see all the wonderful monuments, wander through exotic streets or taste delicious cheese – this anticipatory pleasure will reinforce my determination to give up the small pleasures of the here and now.
Read more:
- Why do we hesitate to spend money (and time) on ourselves?
Look for the source of pleasure in saving
Another way to avoid the pain associated with forgoing immediate pleasures is to approach saving with excitement as a fun game. “Our brain is designed in such a way that it links the achievement of profit with pleasure,” emphasizes Ryan Howell. – For example, we spend money on something that we have long wanted – and our reward system salutes us with the release of dopamine (a reward hormone). But if we convince ourselves that our cherished goal is not to spend, but to save, our inner hunter will strive for it with the same degree of perseverance. In this case, we will get our dose of dopamine if we find the best offer or, say, we successfully bargain with the seller.
Focus on happy people
Positive psychology says that if you want to know what will make you happier, find those who are happy and do what they do. “Happy people have a certain style of behavior with their income,” says Ryan Howell. – Approximately 25% they save in the bank or invest. They give 12% to charity, donate to churches or spend on gifts for friends and family. And about 40% they invest in enriching their life experiences – travel, education, sports and hobbies. These three habits are the most basic.”
1 For more information, visit the Carnegie Mellon University website, cmu.edu
2 For more information, visit the Gallup Foundation website, gallup.com