by Zulmai
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If you’ve ever tried to get your savings in order, chances are you’ve encountered a few failures along the way. But here’s the truth: it’s not your fault. You simply didn’t have the right strategies. So, let’s change that! Here are six scientifically-backed ways to save $10,000 faster, and with a bit of discipline and the right strategy, you can hit that goal in no time.
1. Guideline Automation: A Hassle-Free Set-and-Forget Strategy
A 2004 research study found that automating your savings can help you save 3.8 times more money. Sounds too good to be true? Trust me, it works. The best part? You can still enjoy the things you love (like Pineapple pizza, and broccoli) but in a smarter, more controlled way.
Guideline automation requires a little effort upfront, but it’s well worth it. The concept plays on a psychological principle called loss aversion—it’s when losing money feels worse than finding money. Saving money can be emotionally challenging. However, automating your savings eliminates the mental barrier, allowing you to save effortlessly.
Here’s how I set it up:
- Step 1: My paychecks go into my checking account.
- Step 2: On payday, my bank moves a portion of that paycheck automatically into two separate accounts: a spending account for monthly expenses and a savings account for future use.
- Step 3: At the end of each month, whatever money is left in my spending account gets transferred into my savings account. From there, I decide whether to place it into an emergency fund, a high-yield savings account, or my investment portfolio.
By applying this strategy, saving 10% of a $75,000 salary would result in almost $7,500 saved by the end of the year—without lifting a finger!
2. Break down the $10,000 goal into smaller, manageable steps.
Setting a big goal like $10,000 can seem overwhelming, but if you break it down, it becomes a lot more achievable. Think of it like eating an entire pizza—one slice at a time.
Here’s how you can break down your savings goal:
- $10,000 goal per year = $833 per month
- That’s $27.30 per day.
Now, you might be thinking, “That’s still a lot of money.” But here’s how small changes can add up:
- Cook meals instead of eating out ($10–$15 a day)
- Bring your own coffee ($5 a day)
- Cut unnecessary subscriptions (like Netflix, $30/month)
- Use public transport instead of Uber ($50/week)
- Hang out with friends instead of going to bars ($100/week)
If you cut back just a little each day, you’ll find that saving $27.30 daily is much easier than you thought. You’ll hit your $10,000 goal by the end of the year—no sweat!
3. Combat Present Bias by Adopting a Simple Mindset Shift.
Psychologists call it present bias—the tendency to value immediate rewards over future ones. It’s why we often make impulse buys that we later regret. The good news? There’s a way to outsmart it.
Instead of focusing on the small, daily sacrifices (like the $27.30 you’re saving each day), reframe your mindset and focus on the bigger picture. Think about the $10,000 you’ll have saved by the end of the year, and suddenly, saving small amounts each day seems far more doable.
4. Manage Your Emotional Resources Effectively
Did you know that companies like Amazon, Coca-Cola, and Nike spend billions of dollars hiring teams of psychologists to figure out how to get you to buy more? They know how to manipulate your emotional bank to make you feel the urge to buy.
But instead of letting them take control, why not use the same tactics to save money? A 2019 study found that you’re 3.3 times more likely to save if you use your emotional triggers to fine-tune your spending behaviors.
So, what motivates you to save? For me, it’s my parents. They came to the U.S. with nothing, worked hard every day, and saved diligently to provide me with a better life. That’s my “why”—and it keeps me grounded and motivated to save.
Ask yourself, Why do you want to save? When you find that deep, personal connection, it becomes much easier to stick to your financial goals.
5. Establish a “Not Now, But Later” list to prioritize your desires and delay impulsive decisions.
Dopamine—the pleasure chemical in our brains—plays a huge role in our spending habits. When we see something we want to buy, our brains give us a little dopamine hit. But the problem is that the excitement fades once we make the purchase.
Instead of giving in immediately to the urge, create a “Not Now, But Later” list. Whenever you see something you want to buy, add it to the list. Wait 30 days before purchasing it. Most of the time, you’ll realize that the impulse to buy has passed, and the item no longer seems as appealing.
This method taps into our natural desire for instant gratification without breaking the bank.
6. Embrace the Future Value Formula.
The future value formula is one of the most important financial concepts to understand. It helps you determine the worth of your money in the future. The simple takeaway? $100 today is worth more than $100 next year because you can invest it and watch it grow.
If you can invest your $100 into something that yields a 10% return annually, you’ll end up with $110 a year from now. By understanding the future value of money, you can make smarter financial decisions and avoid impulse purchases that may hinder your long-term goals.
For example, if you’d put that $5,000 you were going to spend on something like Mr. Funny into an S&P 500 Index Fund, it could be worth over $33,000 in 20 years. Suddenly, that lamp doesn’t seem worth it anymore, does it?
Final Thoughts
Saving money can be challenging, but with the right strategies in place, it’s possible to hit your goals faster than you think. The key is automating your savings, breaking down big goals into smaller, more achievable targets, and focusing on the bigger picture.
And don’t forget—it’s important to understand why you’re saving, delaying gratification, and being mindful of the emotional triggers that companies use to get you to spend. By using these tools, you’ll be well on your way to saving $10,000 faster—and achieving your financial goals with ease.
Let me know if you found these strategies helpful and if you’re ready to start saving more today!
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