The following post is by MPFJ staff writer, Marie. You can read more of Marie’s articles over at her own blog, Family Money Values. Enjoy!
I’m a saver. I have been for years. It is a habit I learned from Mom and Dad growing up and never lost.
But saving is hard, especially when you are first starting out. Persistent saving – year over year is very difficult. People get tired of saving, scrimping and wanting. How can you psych yourself up to continue to save? What steps can you take to make it easier to save than not?
I have used the few tips in this post during my many, many years of saving. My saving habit is now so ingrained that it is sometimes hard to spend!
Convince Yourself That Saving Is A Need, Not A Want
Make a list all of the reasons you need to save. Condition yourself to view saving as a way of life and not a short term ‘diet’. Think about how a relatively small and short period of time of saving will allow you the life you want in just a few years.
Make Saving Part Of Your Self-Image
You can be proud of your (future) ability to be financially stable and not reliant on the government, charity, family or friends to make your way. Knowing that saving is one of the steps to being financially self-reliant makes it psychologically easier to save.
Trick Yourself Into Saving
Close your mind to any overages in the budget you may have in one period. You didn’t spend as much as you thought on lawn care? Don’t spend the extra, save it.
Allocate money in the budget and your mind to meet those periodic bills (like insurance or Christmas gifting). When I first started out, I tried hard not to forgot about the non-recurring bills.
Subtract a little extra out for savings before you buy that extra bag of candy at the grocery.
When I was dirt poor and living paycheck to paycheck back in the late 1970’s, I used to pencil the expected bills into the check register and subtract out those amounts up front, when the paycheck was deposited. That way, I didn’t feel that we had all that money free to use. This helped me (and my spouse) psychologically realize that, no, I couldn’t afford that steak from the grocery store – get the hamburger and make it stretch instead.
In other words, make a budget! If you hate to budget, develop your own method as I did.
Automate Saving
Even if you can only afford to save $5 or $10 a payday, set up an automatic payroll deduction to your account Even a dollar a week over time is better than nothing. This is the tried and true, pay yourself first mentality.
Pay Yourself First. Period. Always.
When we have money we feel flush. Put away your savings first thing and you won’t feel so flush! Once you have that emergency fund built and your high interest rate debt paid off, start an automated investment program (sometimes called systematic investment) where in you set up an automatic payroll deduction to an investment account and an automatic investment into the fund or stock or bond of your choice each period.
Make That Savings Account Off Limits!
Train your self to consider that account sacrosanct. It is dead to you, you can’t spend it. What if the refrigerator breaks down you ask? Shouldn’t I use my savings to get a nice new one? Nope. Look for other alternatives. Alternatives would be to use that emergency fund; fix the old one (at least temporarily); set up a special fund for a new refrigerator; or find a free or inexpensive used one.
Maintain Your Standard Of Living When Your Income Increases
Put aside at least part of any raise you get as part of your saving program. Now is not the time to add to the cost of your lifestyle. Now is the time to make sure you can continue your chosen lifestyle by becoming financially free!
It is psychologically important to celebrate success. So instead of buying a new smart phone with your raise amount to celebrate, take the family on a picnic on a nice summer day and toast yourself with a bottle of local wine.
Set Goals And Check Progress Frequently
Track your savings account weekly or monthly so you can get satisfaction from watching it grow. Figure out your net worth at least yearly as well. Success breeds success. Knowing that your program is working will give you incentive to continue (and maybe even add to) your savings program.
I still do this, at least once a month.
Imagine Future Pleasure
Project what your savings can become in the future. For instance, saving your $1 a week for a year will get you $12 ahead, in 10 years you would have $120 you don’t have now. Of course, you are probably saving more than $1 a week (or will be), so your totals will be much more.
Think about all the different things that money can get you. As long as you have the money you can spend it many ways in your head! Once it is spent all you have is old stuff, worth less than what you paid and potentially a case of buyers remorse.
Set small savings goals and celebrate when you reach each.
Recognize yourself and your family with an inexpensive special celebration or reward. You will be at this for years, it is important to mark some milestones along the way.
You Don’t Need To Be A Dull, Boring Person
Putting aside every spare nickel can be tiresome. You may find a need for change, excitement or different activities.
I used to get really tired of our little house. Instead of re-decorating, I would re-arrange the furniture.
I used to long for fun activities. Instead of going to the movies and spending a bunch, I’d grab the kids and go to the public beach for the day with a friend.
Help Yourself So You Can Help Others
It is laudatory to donate money to causes you feel are important or to help friends or family out of a tight spot.
Many times life will present opportunities to you to help others with their problems. When those others are family or close friends it is tempting to share everything you have to help their situation. In fact, in some families and cultures there are strong expectations that you will do so.
In my opinion (and practice), it is often better to care for yourself and your immediate family before attempting to solve other people’s problems. Otherwise, you may become a problem for someone else!
Caring for yourself first can mean putting aside money for retirement BEFORE saving for your kids college. It may mean helping your grandparent find social aide rather than trying to pay for their Alzheimer’s nursing home yourself. It may mean saying no to a sibling or friend requesting financial assistance. Who will take care of you and yours if you don’t put yourself first?
How about you all? How have you developed your savings psychology?
Share your experiences by commenting below!
***Photo courtesy https://www.flickr.com/photos/68751915@N05/6736135095/
