Getting rich is never really “easy”, especially when you’re chasing that dream all on your own.
Most often, it’s not just about the amount of hard work you put into it, it’s also your upbringing as well as your unconscious thoughts and beliefs about money.
Thankfully, there are ways to overcome obstacles like this. When it comes to your subconscious, the trick is, well, to trick it.
1. Automate your savings
Before you blow your entire month’s income on impulse buys, why not automate your regular deposits into a savings account? This way, your savings are safe and sound in your bank account before you get your hands on them.
2. Use cash more often
How you spend is a reflection of how you perceive the value of money. Obviously, when you use a credit card, it is easier to overspend; this is because you do not see your money being spent.
It is for this reason mostly that you should refrain from using your credit cards, or, use them only sparingly.
3. Use coins or smaller ringgit notes first
You might not notice it, but people in general tend to be less careful when spending their smaller ringgit notes or coins. How does this trick work? When you run out of smaller bills, you tend to rethink whether or not the object to be purchased is worth breaking the bigger notes for.
Of course, this does not work all the time; it might also not work for those who are so used to spending a lot all the time anyway. However, this is a helpful trick for those who tend to be organised or those who do not like having a lot of coins or small bills in their pockets.
4. Have more than one bank account
Your bank accounts should not be limited to your income and savings account. Consider the different things you are planning to save for such as your retirement, an emergency (which, by the way, is your reserve money and should be able to cover you for three to six months in the case of unemployment and other unforeseeable events).
This will help you track your progress and identify how much you should set aside for each goal easily. It is also harder to use your savings for everyday expenses.
5. Set goals and visualise them constantly
If you cannot clearly identify what you’re saving for, you will not be motivated to save or fight the temptation to spend.
Define your goals specifically. “Getting rich” is not a goal. Ask yourself what you really want to save for or the things you want to achieve. Think long term instead of thinking about what you want to have next month.
Ask yourself: “Where do I see myself 10, 20, or even 30 years from now?” At the same time, you have to be realistic about the goals you set for yourself.
It might be helpful to write your goals down and revisit the list as often as you want, especially when things do not go as planned or the temptation to spend is overwhelming.
6. Clear your credit balance and other debts
Do this, of course, without tapping into your retirement savings and emergency fund.
Start new habits that will keep you from accruing more debt in the future ie by refraining from using your credit card, planning your budget regularly, putting more into your savings accounts, and investing.
7. Make financial decisions or budget plans when in a positive mood
Extreme emotions such as anger and high levels of stress make you careless. That is why you must avoid making financial decisions and plans after a rough day at work or after an argument with your partner.
Studies show that your mood has an effect on your financial decision-making and planning.
For one, it can make an investor think too optimistically regarding their stocks. While being optimistic is not wrong in itself, being too confident in investments and business can lead you to lose more than you gain.
This article first appeared in The New Savvy.
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