Putting money aside isn’t thrilling.
Your brain simply isn’t wired to enjoy it. So if you want to build solid financial habits, you’ll need to outfox your own impulses.
Under-the-Radar Psychological Hacks to Boost Savings
Luckily, I’ve experimented plenty with tricks to encourage smarter money decisions — I’m only human too — and I’m sharing some favorite techniques that work for me.
1. Don’t Rely on Willpower
Trusting yourself is great in many areas, but when money’s involved it can be risky. We want what we want, and that often means spending rather than saving.
Take the reins away from momentary desire by automating your money.
Try these two approaches:
- Arrange automatic deductions from your paycheck into savings or retirement accounts. (Or both!) One method is to route 10% of your paycheck into a separate, hands-off account with a fintech likeChime®. It avoids overdraft fees, monthly maintenance fees, foreign transaction fees and minimum balance charges.
- Use an automatic savings tool likeDigit. Link it to your checking account and its algorithms will move small — and safe — sums into an FDIC-insured savings account. It’s free for 30 days, then $2.99 monthly.
2. Reward Your Saving
Many banks disappoint. They charge monthly fees and minimums while offering almost no interest. That can be demoralizing.
Instead, choose a bank that treats you well and delivers competitive interest.
A mobile bank called Varo is a solid option to grow your balance much faster than the norm.
The FDIC reports the typical savings account yields a meager .08% APY*, but with an online checking and savings account at Varo, you’ll earn more than 20 times that rate on your savings.
And there are no monthly charges.
Opening a new account isn’t everyone’s favorite task, but Varo simplifies it. You can start an account with just one cent, and over 750,000 people have already joined.
*https://www.fdic.gov/regulations/resources/rates/
3. Reduce Anxiety About Credit
Did you know your credit report might contain mistakes?About one in five credit reports contains an error, according to a Federal Trade Commission study.
To monitor your credit and gain peace of mind, get your score and a free “credit report card” from Credit Sesame. It explains what’s on your report in plain language, how it affects your score and how to fix issues.
By simplifying the details, you’re more likely to notice inaccuracies. If you spot an “unpaid” card you know you paid or a collection account that never existed, you can dispute it and potentially boost your credit score.
4. Visualize Your Wealthier Future Self
Spending $2 today may seem trivial. But consider that $2 could become more than $60 by retirement — that perspective can change choices.
The secret is not stuffing money under your mattress. Open a retirement vehicle like a 401(k).
Once you have a 401(k), understanding it — and any hidden costs — can be challenging.
There’s a robo-adviser that helps. Blooom, an SEC-registered investment advisory firm, will optimize and oversee your 401(k) for you.
It offers a free initial 401(k) review, letting you learn more about your account: whether you’re paying excessive fees, whether your stock vs. bond allocation is right, and similar details.
Afterwards, the service costs $10 per month (first month free through Savinly) to continually monitor your retirement. Tell Blooom your target retirement age and it can adjust the portfolio’s aggressiveness to help you reach that goal.
…and while you’re at it, imagine yourself as a silver-haired retiree enjoying golf, the beach, or whatever relaxed life you picture.
5. Start with Tiny Steps
Finding money to save is difficult, especially on a tight budget. But it’s crucial to begin putting something — even tiny amounts — toward the future.
One trick is to collect your digital spare change — whichAcornsdoes automatically.
Link your credit and/or debit cards and it will round up purchases to the nearest dollar, investing the change into an account.
The app costs $1 per month for balances under $1 million, and you receive a $5 bonus upon signing up.
Your brain barely notices the money disappearing — it’s a clever stealth-saving tactic.
6. Pause Before You Buy
“Let me sleep on it” is a phrase I use often. Waiting a day has saved me from many bad choices, and the approach applies to spending too.
Institute a mandatory hesitation period for new buys. Some experts recommend 30 days; others suggest waiting one day for every $100 of the purchase price.
Giving yourself distance reduces impulse buys and buyer’s remorse.
7. Monitor Your Outflows
Each week or month, take time to log your expenditures. It’s illuminating to see where your money is going — and there’s no excuse, thanks to budgeting apps like Empower.
After linking your bank account, Empower helps you set up a monthly budget and watches your accounts to flag overspending and identify ways to save.
8. Ditch the Tab Mentality
Cash or run a tab?
If your aim is to save, opt for cash.
Ordering another drink feels painless until you actually hand over money. Make the spending sting.
That’s why many people avoid credit cards: swiping feels detached, like running up a tab. If you’re prone to this, hide your card deep in your wallet — or even literally freeze it in a block of ice.
Also be wary of autopay and saved card numbers. Keeping your card stored in your browser can make online shopping fartootempting.
9. Convert Prices into Work Time
Imagine new golf clubs cost $300. It doesn’t sound outrageous on its face.
But step back and consider: How many hours would you need to work to earn that $300?
If you make $10 an hour, that’s 30 hours of labor — before taxes and deductions.
Would you trade 30 hours of your life for those clubs?
Viewing purchases through time spent earning the money often helps your mind make better decisions.
10. Try the Stranger Test
Is a cute sweater whispering your name from the rack?
Before giving in, check the price. Suppose it’s $32. Use a psychological tactic often called the stranger test, which Work to Not Work dubs “the simplest budget/savings trick ever.”
Picture a stranger offering you: the sweater in one hand and $32 in the other.
Which would you choose? Most people would take the cash.
11. When You Buy, Maximize Savings
After all your deliberation, if you decide to make a purchase, enjoy it — but also minimize its net cost.
Here are a few practical ways to save when you spend.
- One trick is to use a cash-back site like Ebates. When you shop through its 1,200 partner retailers, you’ll earn cash back — sometimes up to 25%! Plus, there’s a $10 Walmart gift card for new users.
- Ibotta is best known for grocery cash back. You can also get rebates on a wide variety of purchases — from Amazon items to a Hulu subscription to airfare. You’ll earn a $5 bonus after uploading your first receipt.
- Don’t delete email receipts. Capital One Shopping Price Protection is a free tool that can get you money back for online purchases. After signing up, it scans your email for receipts and tracks price drops at monitored retailers to help you claim refunds.
Be careful these tools don’t encourage extra spending. You might be tempted to buy something just because Ibotta offers $10 back. Resist that impulse.
We suggest choosing the item you want first, then checking for cash-back deals so discounts don’t sway you into unnecessary purchases.
Capital One Shopping Price Protection compensates us when you sign up using the links we provide.
12. Reframe “No” as a Positive
Saying “no” can feel harsh, so don’t think of it negatively. Reframe each “no” as a “yes” to something else.
For example, when a friend invites you to an unaffordable dinner, don’t frame it as denying them. Think of it as agreeing to other priorities: paying down student loans, funding a dream trip or investing for retirement.
Turn staying in into a productive option.
Sign up forSwagbucks, and take a few surveys while catching up on shows. You can redeem rewards for gift cards, and you’ll get a free $5 for completing your first survey.
13. Team Up
When forming an exercise habit, common advice is to find a partner who keeps you accountable.
The same principle applies to finances: accountability partners help.
Recruit a friend with similar goals. Agree to text each other whenever you make an unnecessary purchase or go out for drinks.
Knowing you’ll report your actions makes you more likely to stick to your plan — and helps convert mindful spending into a habit.
14. Make Your Goals Tangible
Saving for a home? Tear out aspirational photos from magazines and put them on your wall.
Dreaming of Paris? Make the Eiffel Tower your phone’s wallpaper.
Big goals can feel distant, so visualizing them keeps you motivated.
You can even wrap a picture of your goal around your credit card so each time you use it, you’re reminded of what you’re working toward.
15. Allow Yourself an Occasional Treat
Yes — allow a splurge. It won’t save money immediately, but it can help you sustain good habits long-term.
Building disciplined financial behaviors takes time, so give yourself some leeway.
Splurge on something nonessential every few months: a manicure, a bottle of wine, a movie night.
That release lowers pressure and reminds you that a rewarding life is compatible with being a saver; it just requires patience and effort.
*Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC.”
