Our brains are weird. We know we need to save money for the future. We know we need to cut back. But knowing doesn’t make us exactly joyful to stock our money away.

So, what do you do? Thankfully, there are ways you can trick your brain into overcoming the biases we all carry and start saving money (mostly) pain-free. 

Why is it hard to want to save money?

The psychology behind why saving is challenging lies in our struggle to empathize with our future selves. We tend to prioritize present desires over future needs because our brains perceive the immediate gratification as more rewarding. This bias, known as temporal discounting, makes it difficult for us to see the long-term benefits of saving and leads us to favor instant pleasure over delayed gratification.

Make it easy

Automating your savings can be the easiest way to save from a psychological perspective. By setting up automatic transfers from your checking account to your savings account, you remove the need for conscious effort and decision-making. This not only streamlines the saving process but also minimizes the temptation to spend money impulsively. 

Go for the dopamine hit

Saving even small amounts of money can trigger a dopamine release in our brains, creating a sense of satisfaction and pleasure. Over time, this positive reinforcement can turn saving into a habit, making it easier to resist the urge to splurge on unnecessary expenses.

Wait 24 hours

The inclination to make impulsive purchases often fades with time. By waiting 24 hours before making a significant purchase, you give yourself the opportunity to reassess whether it aligns with your long-term goals. This cooling-off period can help you avoid succumbing to the initial rush of excitement and make more prudent spending decisions.

Think in time, not money

Shifting your perspective from thinking about purchases in terms of monetary value to considering how much time you'd have to work to afford them can be a powerful motivator to save. By framing purchases in terms of the hours or days of work required to cover their cost, you can overcome the adrenaline rush of buying something new and prioritize saving for meaningful goals instead.

Gameify it

Turning saving money into a game can engage your competitive spirit and motivate you to save more effectively. Set specific savings targets, create rewards for reaching milestones and track your progress visually to make saving feel more like a fun challenge rather than a daunting chore.

Lean on your friends

The buddy system can be a powerful tool for boosting your savings efforts. Sharing your savings goals with friends or family members can provide accountability and support, making it easier to stay on track. Additionally, seeing others succeed in their saving endeavors can inspire and motivate you to maintain your own financial discipline.

Saving money may seem like an uphill battle against our innate desire for instant gratification, but by understanding the psychology behind our spending habits, we can outsmart our brains and cultivate healthier financial behaviors.

Want more ways to save money and reach your financial goals? Join us for our free webinar Saving With Purpose on Thursday, March 21.