Managing personal finance efficiently is all about earning more and spending less. However, I'm sure you're thinking that it is not as easy as it sounds to be. On the contrary, it is difficult for many to save the required amount. However, if you condition your mind to save more, then it'll be much easier for you to achieve your financial goal.
Here are 9 awesome tricks to condition your mind to save more every month.
- Treat it like driving a vehicle - Treat your financial management as driving a vehicle. Whenever you're at the crossroads of making a decision, analyze well and make a decision which you think is the best; then, ask yourself - whether that decision will accelerate you towards your financial goal or put a brake to it. Depending on that, you can decide whether or not to make that decision.
- Motivate yourself in an unusual way - At first, you need to calculate how much you need per week. To calculate the amount, first of all, take into account how much you need every year. Then, divide the amount by 52, that is, 52 weeks. You will get to know how much you need per week. This will give you the motivation to save at least that amount per week. You can think it this way - the amount you're able to save, you actually can buy a week of freedom with that amount. Moreover, interest is usually calculated in compound interest. So, the , the . Now, what will you do in this freedom week? Look for opportunities to find a better job or to enjoy a fun-filled week doing activities you like the most.
- Always think 'why' you want to save instead of 'how' - If you focus on how you want to save, then it'll be difficult for you to save since you'll focus on what you'll be deprived of, if you save. However, if you focus on why you want to save, then it'll be easier for you to motivate yourself as you'll then focus on what you'll get if you're able to save the required amount.
- Cover your credit card with your own creation - It is an easy but good trick. If you always feel the urge to use your credit card, then you can follow this simple trick. Cover your credit card with a plain white paper. Then, draw a beautiful picture on top of it. If you need to use the card, then you'll have to tear the paper and destroy the picture. This way, you can at least, stop using the credit card for sometime.
- Select a date while shopping a garment - This goes true for shopping especially, while shopping for clothes. If you're buying a garment, ask yourself whether or not you'll like to wear this dress right now or you have a specific date in your mind when you'll wear it. If you can't figure out any day, do not buy the dress.
- Do 'stranger test' before buying an expensive item - Whenever you cannot decide whether or not you should buy one item, or before buying any relatively expensive stuff, always imagine a stranger holding the item in one hand and the same amount of money in another hand; now decide, which one you'll choose.
- Always save loose change when you buy with bills - Now, here's another advantage of buying with cash instead of plastic money. Whenever you buy with dollar bills, reserve a jar for storing the change or the coins. You'll be astonished to know how much you can save just by following this simple trick. And you won't have to try much to save this amount. , take it to your bank and .
- Put your savings in writing - Try to keep a track of your progress by writing it down. When you save an amount in your bank, you can't touch the amount. However, if you track your progress through writing, at the end of every month, you can see your money growing. This will help you save more.
- Reward yourself every time you hit a saving milestone - Make saving a pleasurable journey instead of thinking of the pleasures you'll have when you reach the goal. It is true but you can make saving a pleasurable journey. How will you do that? Set a financial goal. For example, go out with your friends for eating out or pamper yourself at a parlour once you're able to save $5000. This will help you save the required amount.
You can follow a simple rule - Spend on items where you need to spend your time. For example, your , then or spend money on . In this way, you won't feel deprived but can enjoy the stuffs for which you're spending. In this way, you'll realize that you've reduced spending money on superficial things, or more appropriately, on useless items. In the long run, this attitude will help you save more money.