The Science of Saving
Saving can be…tough, especially if your budget is already tight. So why does cash burn a hole in our pocket?
Blame it on the brain. We’re hard-wired to act on impulse. Delayed gratification is hard to visualize, and we’re being marketed products that take advantage of that fact everywhere we look.
We don’t want to get all yogi on you, but try visualization. Seriously, scientists say imagining your future self reaping the rewards of your savings-minded self can actually help you, well, reap the rewards. Maybe you’re traveling the world or cruising in your new ride. According to a 2014 study involving visualization and saving habits, it works.
If visualization isn’t your thing, try good ole’ savings automation. Start by auto transferring $10 into a savings account each week. Double down when that direct deposit paycheck hits. (Protip: You can hide your savings account from view in your online banking portal. We highly recommend this.)
Teach your kiddos, too. Have them cut out pictures of something they’ve been pining for, then post the pictures where they’ll see them often. Encourage regular, small deposits to save for it. Track their progress where they can see it. You could even pay them a small interest along the way. If they keep their routine going, they’ll quickly see their savings grow.
P.S. – When you’ve properly visualized yourself in the future, use this workable guide and worksheet to make it a reality.