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We’ve all been there: You went into the store for some specific items and found yourself checking out with at least a few things that you definitely don’t need. That $50 could do a lot of good in your savings account, but purchasing these extra things feels rewarding. Why is it so hard to get these two competing feelings to cooperate? If you know the struggle, you’re not alone. Choosing to spend now versus save for later is a common challenge, and it’s one that’s hardwired into our brains. Fortunately, with some easy tricks, you can start to save more and spend less.
Strategies for Convincing Your Brain to Save Money
Why Do We Prefer Instant Gratification?
Instant gratification is the feeling of immediate reward. When we have choices in front of us that involve payouts now versus later, why is it so easy to choose indulgence now?
Habits and Rewards
When we do something gratifying, our brain releases dopamine, and we feel good. Getting into the habit of fueling these chemicals is easy to do, and the cycle begins to perpetuate. Our brain desires the reward as often as possible, and it knows that instant gratification will produce a quick result. Sidestepping this habit and delaying a reward requires pushing past your brain’s natural tendencies.
Emotions Vs. Logic
Researchers have studied the decision-making parts of your brain that are involved in choices like getting money now or saving it for later. Many of the studies show results that initially seem illogical. For example, most people would choose $10 today over $11 tomorrow, but if the choice is $10 in a year versus $11 in a year and a day? Bring on the extra dollar. This seemingly inconsistent result has a lot to do with how engaged the emotional part of your brain is in the decision. For immediate rewards, like $10 today, you’re more emotionally invested than a decision that’s a year away. The more emotional you are, the harder it is to delay a reward.
Tricks to Choose Saving Over Spending
Knowing that your brain doesn’t always cooperate when it’s time to make budgeting decisions can help you navigate these choices more effectively. With a few easy tricks, you can gradually start saving more and curbing your desire to spend.
Make a Plan
One of the reasons it’s so easy to spend money rather than save it is that we suffer from decision fatigue and fall back on habits when we’ve run out of energy. It’s easier to make more complicated choices (like saving money) when you have a concrete plan for doing so. Automating your savings can be the best way to avoid making the choice over and over again. Look at your budget and decide how much you can safely put away each month; even $5 is better than zero. This “set it and forget it” method is one of the best ways to jumpstart your savings plans.
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Envision the Future
By taking time to envision the future and connect with your future self, it can be easier to get your emotions on board with delaying gratification. To convince yourself to save money, choose a specific future goal that requires some savings. Draw or write about that goal and put the information in a spot you’ll see frequently, like your bathroom mirror. Every time you see the goal, imagine how you’ll feel in the future having achieved it. Over time, you’ll be better connected with this future self, and saving money will feel more like a gift to yourself than to a stranger.
Find an Alternate Reward
The reward centers of our brains are hard to ignore, so why not provide an alternative reward when you save money instead of spending it? Think of a non-monetary reward system and tie it into savings. Perhaps you watch your favorite movie at certain dollar increments in your savings account or let yourself skip household chores in favor of a relaxing bath. You can also choose medium-term spending to encourage long-term savings. Let yourself go shopping at the thrift store with $10 every time you put away another $200 in the bank.
Move Away from “All or Nothing”
All-or-nothing thinking makes it easy to avoid saving money: “I’ll never save as much for retirement as I’m supposed to, so I might as well enjoy spending this money today instead.” While it might be true that your savings won’t meet specific goals, that doesn’t mean that it’s worthless. Something is always better than nothing. Practice noticing and reframing this thinking as it pops up throughout your week; you’d be surprised how often we avoid doing things if we can’t guarantee they’ll work out perfectly!
Re-training your brain to favor future savings over immediate rewards can be challenging, but with a few quick tricks, you’ll be on the right track!
The post How to Re-Train Your Brain to Choose Saving Instead of Spending appeared first on AFRO American Newspapers.
