Saving Money Can Be as Difficult as a New Workout Routine, But Not with This Tip
Why Saving Money Can Be Difficult
Everyday, there is someone out there trying to setup a budget and figure out a way to begin to save money. There are numerous methods to go about fixing your finances and saving your hard earned money. Most of them, tied with sure-fire dedication, will work. They all have the same purpose and usually come out with the same outcome: saved money. However, there’s a side to all of these methods and techniques that many overlook, and for the most part don’t even think about. It has to do with the physiological effects of which method you choose in conjunction with your personal mentality.
Not every technique will apply to each individual person. For some, Dave Ramsey’s envelope method may work and for others, a simple Excel spreadsheet might do the trick. But no matter what method you choose, you need to ensure that whichever method you choose aligns correctly with how your mind operates.
If you are using a saving method that isn’t the right fit for you, then you may see yourself sticking to it for only a short period of time and losing all desire to continue. Similar to how each of us has a different preferred learning style (hands on, auditory, visual, etc.), we each have a different saving technique that fits us. It is only until something feels natural, that we will continue to pursue it.
That's it, that is the key to making the difficult challenge of saving money become easier done than said. It is making sure you are doing it in a way that makes the most sense to you.
So before you begin any money saving journey, make sure to research all the methods out there and choose the one that you feel will resonate most with your saving style.
It’s Called the Savings Benchmark
No matter which method you find works for you, there’s always one aspect of saving that you should keep in mind. Using this technique will deter you from giving up and prevents you from losing morale or drive throughout your savings journey. It’s called the Savings Benchmark.
The way the Savings Benchmark works is that it keeps the power of saving relative in your mind, to what works for you. It allows the weight of what your saving to maintain it’s strength in your perception. The Savings Benchmark makes it feel as though every time you put your money away it is like it was the first time you started saving, or if we want to refer back to the gym analogy, it’s that feeling of accomplishment you get after your first session. It's that little 'high' you get. It’s a powerful feeling, but without the Savings Benchmark in place that feeling dissipates and looses it’s “umph” over time. It’s as simple as that.
Now let’s figure out how to find your Savings Benchmark.
Let’s take saving $100 in a month for example. You can either save $100 out of your paycheck once a month, or you can choose to save around $3 a day for 30 days. Both choices produce the same outcome, however one may resonate more to you than the other. This is how we utilize the Savings Benchmark to ensure the method you choose is the right one for you. It’s the perception in which you choose to see how you save.
Choosing the $3 a day method may pose to be a more reasonable choice if you are able to keep track of putting away $3 everyday. For those that might like a once a month saving style, the $100 might be the right option. It all comes down to how you think about it, and what works best for you. Because if the $100 a month person has a savings plan of $3 a day, they may feel like they aren’t saving much because the $3 to them might seem too small in how they view money. This applies to the other side of the spectrum for those $3 a day individuals.
Try picturing it like this. For those that may be overweight and are looking to shed some pounds, they have a choice on how they want to go about it. They can either set a weight loss goal of 50lbs, or they can set a goal of 5lbs every week until the lose 50lbs.
For some, the 5lb losses are a big achievement (and they definitely are). But if you put a goal of 50lbs right off the bat in front of those people, they can get easily discouraged. It’s because in their minds, the 5lbs a week is a much more attainable goal than the immediate 50lbs. It’s all about perspective.
This thought process can be easily applied to how people think about money and it should. You want to find the correct plan of action and Savings Benchmark to keep you in the game and prevent you from bowing out sooner than expected.
Apply the Savings Benchmark
If you have already found the saving method that is right for you, great! You’re halfway there. Now you just need to ensure that your Saving Benchmark is at the right measure that correlates to how you perceive the weight of your money.
If both are applied correctly, then it should only be matter of time until you complete your saving goals.
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