Many times we spend money unthinkingly. Internet stores, credit cards, or instant payment makes spending money less painful. These things lead us to use money that should be saved for our future to our current life. To stop this habit, according to CNBC Invest In You, these are 5 tricks for effective saving.
1. Make a plan
Making a plan sounds boring. However, everything that starts with a plan can bring us a better result. Similarly, for saving a plan generally leads to a budget.
This plan can be a road map that tells you how much you can spend. Besides, this road map can help you reach your goals. The goals can be as simple as treating yourself something nice to early retirement.
Also read: 5 Effective Ways to Be Free from Credit Card Traps
2. Stop your plastic habit
Now, start to use cash, a prepaid credit card, or write checks. Using those will give you an emotional feeling for how much something costs. Therefore, it will change the way you spend your money.
3. Listen to your credit cards
Credit cards can help you control your spending. Almost all credit cards have an alert system. Besides, you can also customize the alerts. You can set your notification to email, text, or also both. Find the way to customize it on the search engine.
Also read: Earning Money through Peer to Peer Lending
4. Wait
Many online marketers know there is a 70% to 80% drop in the likelihood you’ll buy something if you put it in your online cart. Moreover, the possibility gets higher when you leave it for a few days. That because you may feel the emotional pain of spending your money. Thus, you may eliminate at least two-thirds of anything you are buying for emotional reasons.
5. Don’t go alone
Having a financial advisor can be a good idea. Even getting help from friends can help you to be more mindful of your spending habits. Report at the end of the month with someone to hold you accountable. Thus, you will be less inclined to spend. Accountability helps in being more intentional with your plans.
