These Two Ways To Save More Money Are Actually Backed By Science
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When it comes to ways to save more money, sometimes you just trust the science.
Let’s be honest, saving money isn’t the most glamorous thing you can do with your hard earned cash. But it is a necessary evil if you want to built real wealth. Because you can’t achieve the ultimate goal of financial freedom if you blow all the money you earn.
Now, there are a lot of ways to reduce expenses every month to save more money, but what happens if you are inconsistent when it comes to putting more of that money into a savings account or an investment account? If that is a pain point for your, then try these two methods to saving more money.
Two Science-Proven Ways To Save More Money
1. Use Visualization, Vision Boards And Other Psychology-Based Exercises
According to Insider, “The 2019 Sentimental Savings Study found that using guided activities that activate emotional responses can improve habits around personal savings.” Meaning, the use of less traditional exercises have been proven (by science) to help people save money more than just traditional learning alone.
In fact, participants in the study who used psychology-based exercises increased their savings rate by 73%. To that end, the group who chose a more traditional path to financial literacy only increased their savings rate by less than 25%. Boom!
Beyond personal finance and savings, visualization, vision boards and the like have been proven to play a large role in the success of business executives, athletes and others. There is something very powerful about visualizing the outcome before it happens. Whether you’re visualizing the goal of having $1 million investment account or you close your eyes and imagine your driver heading right down the fairway, psychology-based exercises are very impactful on performance.
2. Automate Everything
Take the human element out of your financials. The “human element” meaning you. If you’re not hitting your goals, you should consider automating your deposits into your savings or investment accounts every month. It will ensure that you’re hitting your savings goals and also make your life a lot easier.
According to a paper published in 2014, those who perceive their lives as a series of events that repeat themselves, or in cyclical terms, are estimated to save 74% more than those who think about time linearly, with a stronger concept of past, present, and future.
If you are part of the linear-thinking crowd — meaning you’re so optimistic about the future that you think your lack of savings will someday just cure itself — automation is a must. Because no one is coming to save you. And if you can’t come to terms with that, then you better opt for automation.
In summary, don’t just visualize your success, automate it.