In a world where every other financial guru advises keeping detailed records of expenses, we suggest looking at saving from a different angle. What if we told you that it is possible to save money effectively without writing down every penny you spend every day? Sounds unbelievable? Let’s take a closer look.
Why does our brain protest against saving?
Before we move on to practical advice, it is important to understand why saving is so difficult. And it’s not about weak willpower, but about the peculiarities of how our brain works.
1. The ‘future me’ effect: when tomorrow becomes today
Imagine this situation: a week before a conference, you are offered a choice of snacks: a banana or chocolate. 74% of people choose the banana, naturally concerned about their health. But when the day arrives and both options are in front of them, 70% still grab the chocolate bar. Why does this happen?
Our brain tends to idealise the ‘future me’. We sincerely believe that tomorrow we will start saving money, and on Monday we will start eating right. But when ‘tomorrow’ comes, we remain the same people with the same habits.
Life hack: Plan your savings in advance when you are optimistic about your future. Set up automatic transfers to your piggy bank (envelope, jar, etc.) immediately after receiving your salary.
2. Inertia: why we continue to pay for unnecessary subscriptions
Have you ever noticed that you continue to pay for a streaming service subscription that you don’t use? You are not alone. Research shows that 54% of people do not cancel their subscriptions after the free trial period ends and continue to pay for an average of two years!
This is a striking example of the power of inertia. It’s easier for us to keep doing what we’re already doing, even if it’s not beneficial.
Life hack: Use the power of inertia to your advantage. Make the process of saving as automatic as possible, and making it difficult to cancel. For example, open a deposit account with automatic replenishment that can only be terminated by visiting the bank in person.
3. Loss aversion: why spending is more enjoyable than saving
An interesting experiment with monkeys clearly illustrates this phenomenon. When monkeys were given one apple at a time, they ate them calmly. But when they were first given two apples and then one was taken away, the monkeys showed signs of severe stress, even though they ended up with the same one apple.
People are not very different from monkeys in this respect. We perceive losses about 2-2.5 times more strongly than equivalent gains. That’s why saving money often feels like a ‘loss,’ even though it’s actually an investment in the future.
Life hack: Change your perspective. Instead of thinking of savings as a “loss” of money now, visualise them as a ‘gain’ in the future. Create a visual representation of your financial goals — a collage, a chart, or even an Instagram account dedicated to your financial achievements.
Life hack #2: Invest. Buying assets can be as enjoyable as shopping. With a smart approach to investing, you’ll look forward to the time each month when you can set aside and invest money by buying a new asset. And if you enjoy small financial experiments, you can even try out entertainment platforms that offer perks such as Wanted Win Casino no deposit bonus codes. They let you experience rewards without risk, and this playful approach can remind you that money can be managed creatively as well as responsibly.
Practical strategies for painless saving
Now that we understand the psychological barriers, let’s look at specific strategies to help overcome them:
1. The ‘pay yourself first’ rule
Instead of waiting until the end of the month and setting aside what’s left, flip that logic. Set up an automatic transfer of a certain amount to a separate account as soon as you get paid. Live on what’s left.
2. The ‘invisible’ money method
Use bank apps that round up your purchases. Every time you pay with your card, the amount is rounded up to the nearest whole number, and the difference is automatically transferred to your savings account. You won’t even notice these ‘invisible’ savings, but over time they can add up to a significant amount.
3. The ‘30-day challenge’ game
Before making a large purchase, wait 30 days. Write down the item you want and the date. If you still want to buy it after a month, go ahead. Often, the impulse disappears and the money stays in your account.
4. The ‘financial fasting’ technique
Choose one day a week or even one week a month when you spend absolutely nothing except for the bare essentials. This will not only help you save money, but also increase your financial awareness.
5. The ‘multiple envelopes’ method
Create several savings accounts for different purposes: ‘Dream Trip,’ ‘New Laptop,’ ‘Freedom Fund.’ Distribute your savings among these accounts. This will make the process of saving more focused and motivating.
Conclusion: from savings to financial freedom
Regular savings are not just a way to save for something specific. They are the foundation of your financial freedom. By starting small and using psychological tricks, you can gradually increase your savings rate from 10-20% to 50-60% of your income without feeling significant discomfort.
Remember: the most important thing is to get started. Even if you save only 1% of your income, you are already on the path to financial stability. Over time, using the methods described above, you will be able to gradually increase this percentage.
And who knows? Maybe in a few years, you’ll smile when you think back to when you thought saving was hard. Because in reality, it’s not just useful — it can be exciting and even fun!
