How to Trick Yourself Into Saving Money - Escient Financial (2024)

How to Trick Yourself Into Saving Money - Escient Financial (1)

The stats don’t lie. Many of us have trouble saving. Approximately 37 percent of people would not be able to cover an unexpected $400 expense without either selling something or borrowing money.While that number is actually an improvement from 50 percent of adults in 2013, it still shows that it's important to save where we can. The problem is that spending is easier (and often more gratifying in the short term) than having money sitting on the sidelines. The best way to save more? Trick yourself. Here are five tricks you can employ to help you save more of your money.

Trick #1: Automate Your Savings

One of the best ways to save your money is to forget it’s even there. Take willpower out of the picture by setting up an automatic transfer from your checking account to wherever - savings, a retirement account, etc. Every month after your paycheck is deposited, your bank or brokerage can automatically transfer over a lump sum of your choosing without any interaction needed. After a while, you may completely forget that you’re even saving money, meaning there’s much less temptation to spend it instead.

Trick #2: Name Your Savings Accounts

Don’t underestimate the power of giving your money a name or meaning. Setting up subaccounts for specific savings goals can be effective, especially if you rename each account to the goal you’re saving for. Think about it, which would be harder to take money out of? Savings or 10 Year Anniversary Trip? Directly connecting your savings with your goals can help deter you from wanting to spend your money.

Trick #3: Find a Personal Budget Software App

You likely don’t have the time (or desire) to sit down and track your spending manually. But with today there are plenty of personal budgeting apps that can sync your accounts, track your spending in real-time, and automatically develop a budget to help you save. Giving a visual overview of your spending and saving habits can be a real eyeopener, making it easier to understand how much you’re really spending and where you have opportunities to save. If you happen to be an Escient Financial client you have access to budgeting tools built right into the financial planning software on your computer via the web or via a mobile app.

Trick #4: Divert Payments

An important part of building up your savings may include canceling unused memberships or subscriptions, cutting the cable cord, or paying off loans like car payments, student debt, and more. However, if you’re not diverting that now “unclaimed” portion of your paycheck into savings, you’re just as likely to spend it elsewhere. Find out just how much you were previously spending on these payments or subscriptions, and then set up automatic payments to a savings or retirement account, or stick that money in an envelope to build-up your cash emergency fund.

Trick #5: Don’t Spend Your Pay Raise

This one can definitely feel hard to do, but it can be another great “out of sight, out of mind” trick to use if you’re able to afford it. Say you’re living on what you’re already making, but receive a bump in your salary of 10 percent. Instead of increasing your monthly spending because you can, consider diverting a portion of it into a savings or retirement account. For example, you could incorporate a certain amount, say five percent of the 10 percent raise, into building up your monthly budget, but automatically roll over the other five percent into a separate savings account. This allows you to enjoy a modest boost in both your monthly spending and your savings.

(Bonus) Trick #6: Don’t Spend Your Tax Refund

This one may also seem difficult to do, especially if you happened to receive a fairly large tax refund. It may be tempting to use that tax refund for a larger purchase, especially if it's something you've been waiting for. However, that tax refund could turn into greater rewards if saved or invested. Of course, another option would be to spend some of the tax refund, and it could be very beneficial to pay down any debts, but try to save or invest as much of it as possible.

Saving money can feel like such an impossible task to do, especially when the temptation to spend has gotten so high. Using these tips and tricks, you and your family can work toward automating your savings, developing healthy money habits and seeing your money grow. Escient Financial can help you find the best ways to spend less, save more, and find the a path to achieving your goals with a comprehensive financial plan. Go ahead and...

How to Trick Yourself Into Saving Money - Escient Financial (2024)


How to Trick Yourself Into Saving Money - Escient Financial? ›

Canceling unnecessary subscriptions and automating your savings are a couple of simple ways to save money quickly. Switching banks, opening a short-term CD, and signing up for rewards programs can also help you save money. Making a budget and eliminating a spending habit each day can help lead to long-term savings.

How can I force myself to save money? ›

Canceling unnecessary subscriptions and automating your savings are a couple of simple ways to save money quickly. Switching banks, opening a short-term CD, and signing up for rewards programs can also help you save money. Making a budget and eliminating a spending habit each day can help lead to long-term savings.

What is the 50 30 20 rule? ›

Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

What is the 30 day rule? ›

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

What is the one hour savings rule? ›

The 'One Hour Savings Rule' Explained

The goal is to pay yourself first by saving one hour of your earned wages daily. While you may have heard of paying yourself first by setting funds aside from every paycheck, the goal here is to pay yourself first from the first hour of earned income in a day.

Why can't I save money? ›

Failing to Set Goals

Having a specific goal or target you're trying to reach helps you to stay focused on what it is you're trying to achieve. If you don't have a goal in mind of how much you want to save or what you want to use the money for it's easy to let other things take priority.

How to do the envelope method? ›

The concept is simple: Take a few envelopes, write a specific expense category on each one — like groceries, rent or student loans — and then put the money you plan to spend on those things into the envelopes. Traditionally, people have used the envelope system on a monthly basis, using actual cash and envelopes.

What is the saving method? ›

At NerdWallet, we recommend the 50/30/20 budget for money management. This approach means devoting 50% of your after-tax income to necessities, 30% to wants and 20% to savings and any debt payments.

Is 4000 a good savings? ›

Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.

What are the 4 methods of saving? ›

Methods of saving include putting money in, for example, a deposit account, a pension account, an investment fund, or kept as cash. In terms of personal finance, saving generally specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is a lot higher.

How much money should I save monthly? ›

How much should you save each month? For many people, the 50/30/20 rule is a great way to split up monthly income. This budgeting rule states that you should allocate 50 percent of your monthly income for essentials (such as housing, groceries and gas), 30 percent for wants and 20 percent for savings.

How to save $10,000 in a year? ›

To reach $10,000 in one year, you'll need to save $833.33 each month. To break it down even further, you'll need to save $192.31 each week or $27.40 every day. These smaller chunks are much more realistic and simple to comprehend, making it easier to track your progress.

Why is it so hard for me to save money? ›

Financial illiteracy is one of the biggest reasons people have difficulty saving or investing money. Many people don't understand how to save or budget their money, which causes them to spend more than they earn. Ignorance can also lead them to make bad financial decisions that can further hurt their ability to save.


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