The Psychology of Saving Money: How to Change Your Mindset and Save More

Psychology Of Saving - The Farm Protectors

The Psychology of Saving Money: How to Change Your Mindset and Save More

Even though the concept of saving seems simple, it’s an act that many people struggle with on a daily basis. We all know that we need to save, but it’s difficult when many are working just to make ends meet, or the temptation to spend is just too big. The ability to save is more tied to psychology than it is tied to how much money we do or do not have. A person usually continues to have difficulty saving until they can change their mindset about money and why it’s important to save. Here are a few commons reasons why people think they can’t save money.

  • They don’t make enough money.
  • It’s too time-consuming to set up a savings plan.
  • They need to spend the money on something else.
  • Bills need to come first before saving.
  • There’s just too much else to do or other stuff going on.

But if you look at the list above realistically, those are all things that can change. More money can be made, savings can be made automatic so it doesn’t take time, spending can be reduced, bills can be reduced at times and people can make the time.

Changing your mindset is the key to saving. The act of saving is actually a habit that a person has to develop and here’s how to do it:

  • Have something to save for and talk about it all of the time. Talk about it to your friends, family, coworkers and anyone who will listen. The more you talk about it, the more excited you’ll get, which will lead to more motivation.
  • Think of savings as a commitment. Fear of commitment? Make it automatic then. Join a savings group on social media to keep yourself accountable; start a blog, start a local group, etc.
  • Stop spending your money on things you don’t need. This is the hardest part for most people, but it’s worth it in the end. Material items wear out, break down, or simply go out of style. Savings, on the other hand, is a security blanket that will be there for you in the event it’s needed.
  • Finally, don’t feel like you have to toss all of your money into savings and live a life free of fun or anything exciting. You can start small and work your way up from there. For example, get out of the habit of buying coffee out and start making it at home, or spend a little less money each month on entertainment.

On average it takes a person 20 times of doing something before it becomes a habit. Since being good at savings is a habit, you’re going to have setbacks and roadblocks, but remember that if you keep trying you will reach your goals.

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