7 Ways to Trick Your Mind And Save Money
These are effective ways to make money on savings without realizing they are gone into savings
You know how to save. Spend less than you earn and save the difference in a safe place. So why isn’t it always that simple? Well, sometimes it can. Here are simple tricks that can help you fool yourself to save more.
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Save your “roundings”
Take advantage of a bank that “completes” purchases and translates the difference into your savings. You may not forget this small amount, but it may increase over time.
The Bank of America’s “Keep the Change Savings Program” rounds each purchase to another dollar if you use a participating debit card. The bank will automatically transfer the change from your current account to savings.
As always, check the bank’s rules and confirm that there are no fees.
Tip: Applications – Acorns, Qapital, and Digit, to name a few – can do that too. However, there may be fees associated with apps, so if you decide which apps are worth it, consider it.
Set it down and forget about it
You’ve probably heard this advice: “Pay yourself first every month.” In other words, treat your savings account like another payment and pay it off before you pay.
Good advice, but it’s better if you don’t have to remember to pay. Do this by setting up recurring automatic transfers from account to savings accounts each month. Out of sight; out of mind.
Check your bank’s website or call to find out how to automate transfers between accounts.
Tip: If your bank does not offer this option, it may be time to get another bank.
Use a cash-back loyalty card
I know a Nigerian startup that is working on it. Using a credit card that pays for certain types of purchases can get you back a little.
“So far this year, I’ve seen about $ 118 on a cashback card associated with my Amazon spending. It’s not a huge amount, but it covers the cost of some purchases every year. Free is good.”
Ignore raises and bonuses
Extend your retirement savings by sending increases and bonuses directly to your retirement savings plan.
Act as if there was no increase. Keep your spending the same as before and give your support plan a lot of support.
401(k)? Use it
Don’t make the mistake of ignoring your 401 (k) at work. The beauty of these plans is that you can build your retirement savings unnoticed as you go through life.
If your current workplace does not offer a retirement plan, consider changing jobs to someone who already has one. When you sign up for a 401 (k) plan, you will be asked to say how much of your salary – for example, 6% – is sent directly to the plan.
As your salary grows, the amount you save will increase because 6% in a new, larger amount means more investment. On the other hand, you will not notice the change.
Don’t stop there. Try to contribute more.
Increase pension contributions
When you can – especially if your salary increases – increase the percentage of your salary that goes to your 401 (k). Increase the amount of your contribution in small steps so that you do not feel affected by the housing loan.
Tip: Do this as often as possible so that the savings keep growing.
Transfer the coins to the savings account
Take the change from the money and keep it. “KOLO” is a good choice to stash your money away.
Do it with the kids as a fun game that unites the whole family and helps them learn the habit of savings.