For many people, saving money is a mental game. We may claim we don’t have any extra to sock away each month, and yet we spend money on all kinds of things we don’t need–elaborate coffee drinks, another new pair of shoes, the latest Apple or Android gadget. For many people, increasing savings is more about willpower than getting a raise. If you’re earning a decent salary and still struggling to save, you may want to try one of these methods to help shift your thinking about saving.

1. Visualize Retirement

A recent study by Capital Group revealed that those who took the time to visualize themselves living out their ideal retirement were more willing to save. In fact, those who consciously pictured their retirement were willing to set aside 31% more of their paycheck than the control group (who did not visualize their retirement before committing to a savings plan).

That’s the power of visualization. If you think long-term, all of a sudden you’re able to bypass impulse purchases and forgo this season’s latest clothing, technology, or hot new restaurant. You become more conscious about spending because you’re trying to get to a place where you can begin your dream retirement.

Financial advisor Kim Gaxiola recommends jotting down notes, collecting images, or drawing sketches of your ideal retirement. Then, put it all on one piece of paper and wrap that paper around your credit card. Every time you take it out, you’ll be reminded of your ideal retirement and hopefully be able to resist the temptation of impulse purchases.

2. Think in Work Hours

Another mental exercise you can use to bolster your savings is to begin thinking in “hours” instead of “dollars.” First, take your net income (after your 401K deductions, taxes, medical, and other deductions) and calculate how much you make each hour. That will help put purchases in perspective. Do you really want to spring for a leather coat that costs fifteen hours to buy?

If you want to take this exercise in a different direction, deduct all your monthly expenses from your earnings (in addition to your normal deduction) and see how much money is left over. What percentage of that valuable pool of “excess cash” is needed to buy your new leather coat? Is it worth it?

3. Try the 50/30/20 Method

One simple budgeting tool to try is the 50/30/20 Method. Essentially, this method recommends allocating 50% of your earnings to necessities, 30% to non-necessities (like entertainment or new clothing), and 20% to savings. This is a very general guideline and the actual recommended numbers will vary based on an individual’s situation. Though it is best to enlist the help of a financial advisor to develop a more specific plan, this is a good place to start.

 

How will you start thinking differently about saving money? If you’d like other recommendations, I’m here to help.

 

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