How to stop wasting money: 4 tips from economists

1. Plan your budget for a week, not a month

In 2017, economist de la Rosa conducted a study of people receiving food subsidies. The participants were divided into two groups: one was shown the amount of the benefit for a month, the other - for a week. It turned out that the latter are better at planning expenses. Although the amount of the subsidy did not change, they had enough money for a longer period.

A simple change of context helped people. Usually food benefits are calculated once a month. A false sense of security arises: there seems to be a lot of money. Because of this, it is very easy to spend them unwisely, and by the end of the month limit yourself in everything.

We are all subject to this kind of thinking error on payday. To avoid this, try dividing your monthly income by weeks. It's easier to plan your expenses this way.

2. Cut back on small but regular spending

Researchers at Common Cents Labs conducted several surveys to find out what spending people most often regret. In the first place was eating out. Coffee and on-the-go snacks in a month add up to a decent amount that could be put off or spent on something more important.

You may not drink coffee at all, but you probably have expenses that you regret. Define them. Then change something in your environment to make these purchases more difficult. For example, remove your bank card details from sites where you spend extra. If you can place an order in the application without a card, delete it from your phone.

You can also set a limit for yourself. For example, take a taxi only five times a month and visit two or three films, no more.

3. Involve in saving your future self

We usually perceive ourselves in the present and ourselves in the future as two different people. Moreover, we have more optimistic forecasts about our future version. We believe that it is she who will begin to play sports and save for retirement, but for now we do not have to worry. But you in the future are still the same you, and you need to postpone it now.

The researchers concluded that this is easier if we make a decision in advance. They interviewed two groups of people, some before they received the tax deduction, and others after. Everyone was asked what percentage of the amount they are willing to postpone. In both cases, the participants made commitments that could not be waived. They knew that the promised amount would go to their savings account.

It turned out that those who are just expecting a deduction are willing to set aside about 27% of the total. And those who have already received money - only 17%. Quite a big difference. The point is that the first group responded by thinking about a future version of themselves. Naturally, it seemed to them that someday later they would be more responsible and more economical.

Use this principle to your advantage. Decide how much you will save, not after you receive your paycheck, but in advance. For example, set the percentage in the banking application, which will be automatically transferred to your savings account. And treat it like a commitment that cannot be waived. Because your future largely depends on this.

4. Make financial decisions at “tipping points”

Researchers have proven their benefits in an advertising experiment. They posted two banner ads on social media for a website that helps seniors rent and rent homes. Both targeted people aged 64, but took a slightly different approach.

One was written: “The years do not stand still. Are you ready to retire? It's easier if you share your home with someone. " And on the other: “You are now 64, soon to be 65. Are you ready to retire? It's easier if you share your home with someone. " The second banner was clicked twice as often, and the number of people registered on the site also increased.

The fact is that he focuses on the turning point in life - retirement and the changes associated with it. In psychology, this is called the "blank slate" effect. At the beginning of the year, on Monday or on a birthday, motivation usually increases, we want to act. Use this effect to meet your financial goals.

Create an event on your calendar the day after your birthday. Choose the goal that is most important at the moment. For example, open a pension deposit or pay off a loan debt. Reminding you of this goal at the “tipping point” will help you get started.