Saving money seems to few people a tempting prospect. Most people, on the contrary, do not even try to control their own spending, which often leads to a shortage of money. Whatever your earnings, you can spend all the money. If you do not control your own expenses, this can lead to the fact that in retirement years you will experience a shortage of money.
However, you can do exactly the opposite, and as soon as possible begin to think about the savings, investments and savings that you can make. This will allow you to live on a pension, since by that time you will have enough savings.
This is not theoretical reasoning. There are examples of people who have become millionaires through accumulation.
Friend's tip
A friend advised me on a psychological trick how to save money. Now I evaluate my earnings differently.
She said that it was important not only to make money, but also to manage it correctly. A friend made a lot of money over the years of working in the corporation, and, most importantly, she had her own savings strategy, which allowed her to save a lot of money.
In addition, she also used other strategies, such as automating her savings, as well as careful tracking of expenses. However, she believes that the unique trick associated with analyzing her purchases in terms of cost per hour had the greatest impact on her savings.
Psychological trick
According to her, in order to achieve a very high rate of savings, it is necessary that the purchases are considered in terms of time, and not cash costs. This means that instead of quantifying any product at its price, you must calculate the amount of time it took you to earn the indicated amount.
A typical example. Imagine that you are planning to buy a car that costs half a million. Instead of a specific amount, try to calculate the value of the car in working hours. For example, it took you two thousand hours or several months of continuous work.
As soon as you start applying this trick in practice, you will begin to relate to your own expenses in a completely different way. You really will understand the power of time. This trick is relevant to apply not only for large purchases, but also for any other expenses that you have to make, even if we are talking about some trinket.
Why does this work?
When the time comes to make a purchase that will empty your wallet, you will need to analyze whether it is worth the amount of time that you spent on earning the right amount. With this technique, you will be more conscious of your own expenses, clearly understanding how much you can spend on a particular product and whether it is worth it.
This concept was developed long ago and practiced by many millionaires. If they succeed, then you will succeed.
Time is money
In fact, this trick, as you might have guessed, is based on the long-known truth - “time is money”.
She suggests that you trade your time for money. If you start applying this rule before making a very large purchase, you will begin to calculate the amount of time that you will need to earn the right amount. Sometimes this allows you to more soberly assess your capabilities and abandon large expenses that you really can’t afford.
Imagine a person who earns one hundred rubles per hour. For the whole working day he will earn eight hundred rudders.In the evening, the same person goes to a restaurant and spends eight hundred rubles for dinner. This means that he had to work all day to eat a delicious dinner in half an hour. Agree, that sounds pretty absurd. After all, in addition to dinner, there are also lunches, breakfasts and other expenses. It would be foolish to work exclusively for food.
This principle is relevant when planning large expenses. Do you need a TV that costs several tens of thousands of rubles? Is it worth it to buy an expensive evening dress that you wear only once?
If the use of this trick becomes a habit, you will be able to evaluate your own expenses differently, refuse many unnecessary expenses and save an impressive part of your earnings. This is true for people who want to control their own expenses.