THE BROKEN WALLET

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7 ways to trick yourself into saving money…

Let’s be honest, most people can’t afford “not” to save money. A savings account can lift, or at the very least ease some of the financial burden of an unexpected expense. From experience, there’s no better feeling than knowing you have funds to cover an emergency.

Yet, saving money can be a challenge – especially if you’re not in a savings routine.  

Need a little help in the savings department? Here’s a look at seven ways to trick yourself into saving money.

1. Automate your savings

Most financial institutions allow customers to automate their savings. This is when you transfer a set amount of money from your checking account to your savings account on specific dates.

Another way to automate your savings is to split your direct deposits between your checking and savings account. 

As a general rule of thumb, treat your savings account like another monthly expense and pay yourself first each pay period. 

2. Delete saved card numbers from websites

Online shopping is convenient, but you shouldn’t make it too easy.  

Many online retail stores give customers the option to store or save their payment information. Although convenient for shoppers, it’s also a clever way for retailers to score repeat customers. 

Don’t fall into the trap of easy purchases and conveniences. Keep in mind, too, when you store your payment method online there’s the risk of someone stealing this information.

3. Name your savings accounts after specific goals

Naming your savings account keeps your savings goals in the forefront. It’s a constant reminder of why you’re saving money. Sometimes, a visual is all you need to stay on track.

4. Open an inaccessible savings account

I always recommend opening a high-yield savings account. These accounts earn a higher rate compared to a regular savings, so you’re able to grow your balance faster. And while these accounts are accessible, they’re not “too accessible.”

To get your funds, you must first transfer money from your online high-yield savings to an offline account. This can take one to two business days. Plus, some high-yield savings accounts don’t come with an ATM card. Between the two-day transfers and no bank card, you’ll have fewer needless withdrawals.

If you’re ready to open a high-yield savings, check out CIT Bank’s Savings Connect. As of January 2023 these accounts earn an APY of 4.05%.

5. Use a savings/investing app

Along with saving money, you should consider investing. But don’t worry if you don’t have a lot of extra money. The truth is, you don’t need a lot of cash to start investing. For beginners, I recommend micro-investing apps like Acorns.

I’ve used this platform for several years and feel it’s a great option for newbies who want to become more comfortable with investing. You can make one-time and recurring contributions into your account at anytime starting at $5. Additionally, if you opt into round-ups and link a debit or credit card, Acorns will round up your purchases to the nearest dollar and invest the difference.

As a bonus, use my invite link and Acorns will give you $10. 

6. Remove apps from phone

Removing shopping and delivery apps from your phone is another way to trick yourself into saving money. For some people, these conveniences are “too” tempting – resulting in overspending.

Conveniences are okay in moderation, but you have to be honest with yourself. Do you tend to overspend in these areas? If so, get rid of the apps. Remember, the goal is to save money. 

7. Calculate cost-per hour

How long would you have to work to pay for an impulse buy? An impulse buy of $500 while making $10 an hour calculates to 50 hours of work before taxes — yikes!

Thinking about and calculating the cost-per-hour puts everything into perspective, allowing you to re-focus on your goal.