How To Use Psychology To Save

How To Use Psychology To Save

In my efforts to save money and try to get the most juice so to speak out of every dollar that I earn I have tried and tested various tips and techniques. I think the best way to start saving is to really focus on less and more significant places where you can cut back.

The reason behind doing less is psychological. A lot of times when a person is faced with a number of different choices, indecision kicks in. There might be 20 different things you could do daily to improve your financial situation, but if these choices overwhelm you then the easiest action is to basically do nothing and this is the worst action in most cases.

So the way to approach saving is to go for the big wins and forget about the little things for now like spending money on lattes. I have read about how making decision tires your brain in the Scientific American. The brain uses the executive function and when you have to make many choices it depletes the executive function.

When you read that article you will see why sometimes it may not work out for you to deny yourself the little pleasures in life like eating a piece of cake. The article really hammers home what I have realized after trying different things and that is the fact that you could pick the wrong career or place to live simply because you denied yourself the Chinese dinner that you were craving for.

If you have worked on saving on the big wins and have nothing left to really cut back on, then you can look to save by not purchasing that $4 bag of chips.