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How to Stop Spending Money: 4 Tips from Economists
01.07.2024 03:10
To have enough money for a comfortable life, you need to not only earn money, but also be able to save.
You can learn to plan your budget by using the advice of experts.
Weekly planning
In 2017, a group of economists conducted a study. People receiving food benefits were invited to participate.
The participants in the experiment were divided into two groups. One of them was given subsidies for a month, the other for a week.
The results of the study showed that the second group was better at planning benefits. Although the total amount for the two groups was the same, those who received benefits for a week stretched the funds out over a longer period.
In this case, human psychology is important. On the day of receiving a salary, a person thinks that the available amount will last for a long time.
This is where thoughtless spending comes from. To avoid it, it is worth dividing the entire monthly budget into 4-5 equal parts, according to the number of weeks in the month. This will allow you to control expenses and spend money more rationally.
Unnecessary recurring expenses
Some things in the life of a modern person are habitual. This could be a morning coffee bought on the way to the office or a snack outside the home.
The purchase does not seem like a significant part of the expenses, but if you calculate the amount at the end of the month, you can get a result that is unexpected for many.
To save money, you first need to determine the range of such small expenses, make a list. After that, it is worth looking at what you can refuse completely. Many purchases are made impulsively, and a person regrets them.
You should also remove the linked card from websites or applications where spontaneous purchases are made. Manually entering card data gives you additional time to think about the purchase.
You shouldn't limit yourself from small expenses completely, but you can reduce them. For example, don't buy more than the established monthly limit for such expenses.
The person then decides for himself whether to spend the entire limit in one day or stretch it out over a month.
It is important to control yourself and not give in to the temptation to go beyond the established limit.
Think about the future
A person is designed in such a way that he endows his future self with a high level of responsibility. Everyone plans that in the future they will save more than now.
And this is a mistake, because tomorrow comes, but the person does not change, and his habits remain with him.
Therefore, a person should determine the amount that cannot be spent before the salary is received, and not after. Then a sense of responsibility for one's future will be formed.
Turning Points
It is important to use turning points in life to make financial decisions. That is why most of the promises to yourself are made on Monday, birthday or New Year.
It is psychologically easier to start doing something from a "clean slate". To start saving, it is important to choose a goal, and at the "turning point" remember this goal and start putting money aside.
We previously talked about removing grease from the stove .
