Not all of us are efficient when it comes to saving money. A great way to stay on track is by tricking yourself into doing so. Want to know how? Keep reading.
The art of saving money doesn’t occur naturally to most of us and it needs more than having a mere Savings Account. To build up your savings you need to be consistent with the amount you set aside, the frequency with which you do it, and also the method you use to multiply your savings.
However, the first step towards saving money is to simply start with the right mindset. Often, you may find it hard to stick to a particular savings plan. It may simply seem like it isn’t working for you. And that’s when you need to use an alternate approach to get things moving.
Additional Reading: A Ten-Pointer Crash Course On Savings
Tricking yourself into saving is an efficient way to stay on track and on top of your saving game. But how can you trick yourself into doing it?
Well, that’s easy. We have some really good tricks up our sleeve that we’d like to share with you today. So, sit tight and learn it right!
Additional Reading: 10 Dead-Easy Saving Habits for You
Automation Or Standing Instructions
A lot of people swear by this methodology and it seems to work for them. But how does this work? Here’s the deal. You can automate your salary account or set up a standing instruction to debit a certain sum of money each month from it and move it to another account.
This way you won’t be tempted to use that money because even before your salary is credited to your account, the savings money has been moved into another account. So, you are literally not going to see that money in your account and will not be able to use it.
Make sure you set up this standing instruction to your account the very next day after your salary is deposited. And to tighten things up, you can move that amount into a Current Account or a Recurring Deposit Account.
Hide The Money
Another way to trick yourself into saving is by hiding your own money. Haven’t you heard the phrase ‘out of sight, out of mind’? Similar to the previous approach, you can divert your savings into an account that you don’t use.
For example: you can open a Savings Account and not request for a Debit Card or a Credit Card linked to this Savings Account of yours. This way, you will have no way to access the money in this account, which means it goes untouched.
Label The Account
Often, when you assign a name to something it becomes meaningful and thus has more weightage or value to it. Perhaps, that’s why people get married! Jokes aside, the same strategy can be used to save money.
You can set your financial goals and then start setting aside money for each of those goals. For instance, if you wish to travel you can open a Fixed Deposit only for that purpose. Or if you’re planning to save for your child’s education you can start investing in Mutual Funds.
Tap Your Savings With An App
We live in a world where we are heavily dependent on applications that can be easily installed on our devices. Whether it’s for ordering food and groceries or counting your daily steps. There’s an app for just about everything.
Similarly, for the tech-savvy you, there are plenty of apps that can help you streamline your savings. Some of the most popular ones are Mint, Mvelopes, Crown, Dibz, mTrakr and Splitwise.
Lock It Up
Investing in long-term investments such as the National Pension Scheme (NPS) or Equity Linked Savings Scheme (ELSS) will ensure that your money is locked away for a longer duration. This is because both these investment options have a longer lock-in period.
This is the perfect solution for people who are in the habit of withdrawing from investments prematurely.
Divert Cancellations/Repaid Debt Into Savings
Have you recently cancelled any of your monthly subscriptions? Or paid off your EMIs on any Loan? Well, you don’t have to start thinking of that excess money as something you have at your disposal. You can divert the same money into a Savings Account or a separate account in order to start saving.
Save The Bonus/Raise
Whether it’s your Diwali bonus or a raise at work, try to not use that extra money you get. Suppose you got a 10% hike, consider saving that additional 10% from your salary every month. Think of it as non-existential and don’t spend it.
Additional Reading: 3 Ideas That Could Multiply Your Diwali Bonus
Tricking yourself into saving money isn’t tough. With a little bit of determination and motivation you should be able to save a decent amount by using these techniques.
But, if you’re looking to save money by investing then you’ve come to the right place. Did you know we have a bunch of options for you to start investing?