Do you have high expenses every month and just can’t reduce it? Then you can use science to help. We are therefore introducing three scientifically based methods that you can use to save even more money.
Would you prefer to have your salary paid weekly, monthly or annually? Of course, it is attractive if you receive a very large amount in one day. However, you then have to wait almost a whole year until the next payday.
In fact, scientific studies have shown that we are more conscious of our money when we receive small amounts more frequently. The researcher Wendy de la Rosa from Duke University in America was able to prove this in several studies.
For the most part, it has looked at how people can save more money. She has always backed her results and advice with scientific findings.
We’d like to introduce you to three of the science-based methods that can finally save you money.
1. Focus on the small, regular expenses
There are many people who buy a cup of coffee every day on their way to work. That means spending two cedis a day. In a week that’s already ten cedis and a year we come to just under 500 cedis.
Did you know these dimensions? No? Do not worry! You are not alone in this. And it is precisely these small, regular expenses that weigh on our wallets and prevent us from saving.
But even if you wish, it is difficult to change this behavior on your own. Without concrete action, you will find that you cannot significantly reduce your coffee and pretzel consumption.
Instead, you have to build as many hurdles as possible into your (financial) everyday life. Can’t pay by card at the bakery in the morning? Then leave your cash at home. The aim is to make life as difficult as possible for you in the area you want to change.
If you have to go to the ATM before shopping at the bakery and then take the bus 20 minutes earlier, you will quickly get rid of your habit and save money.
2. Think about your future you
How are you doing in ten or 20 years? Do you have your own house and children? Is it possible that you are already retired? No matter how you envision your future, it is mostly positive. Because our future selves have better character traits and have saved money over the years.
The conceptual transference error is that your future self is dependent on your actions in the present. But when we get our salary, for example, we cannot put enough money aside because we are anchored in the now.
So if you want to save money, you have to think about your future every time you receive a payment. With this attitude we are much more forward looking with our money and save more than ten percent more when it comes to our future.
3. Use moments of change
A look at the future self shows that we humans like to surround ourselves with non-binding sizes and periods of time. After all, they are so vague that in most cases there are no concrete consequences for us.
“I want to take care of my retirement provision for the next year. “This statement satisfies our nagging conscience because we have a plan and it is so imprecise that we don’t have to commit to a specific day.
And if it doesn’t happen for two years, it doesn’t matter. But it is precisely this mistake of reasoning that can cost you a lot of money from a financial point of view. Because if you want to save money, actually every day decides on the amount of your income and reserves in the future.
Whether you put in your first 1,000 cedis at 18 or 28 years old can quickly make a five-digit difference after 20 or 30 years.
And how do you manage to focus more on your plans?
The easiest way is to commit to fixed dates on which you have implemented certain projects. Often it is enough to just write a reminder in the calendar or add a Post-it and a payment date to an invoice.
Because simple and clear numbers give us structure. It can also be more easily processed by our brains, which can effectively save us money.