When I graduated from medical school and started working as a physician, my goal was to spend less, save more, and live below my means. I knew that in order for me to actually accomplish this goal I needed to take certain action steps. Here are 5 life hacks I used to help me spend less and save more.
1. Set up Automatic Savings As someone who doesn’t always have the most self-control, I knew that if I was really going to start saving more money, I had to do it when I first got payed. If I waited until the end of the month or pay period to save, there wouldn’t be anything left. Thus, I had to do it at the start. I went to the payroll section of my work website and put in parameters to send a percentage of each check to an entirely separate account that I would use to save money and build up my emergency fund. The rest of the money went to my primary checking account at another bank that I used to pay bills and spend as I saw fit. By setting up automatic savings in an entirely separate account, I was able to reach my savings goals, learn to live below my means, and spend left over money in my primary checking account without feeling guilty. For me, it was a win-win. It is likely to be one for you as well.
2. Decrease the Temptation to Spend. As someone who feels the need to “treat myself” more often than I should I had to decrease the temptation to do so. It wasn’t enough for me to say I wouldn’t spend as much. I literally had to remove temptation for me to spend. That meant deleting the text messages from clothing stores about new sales and unsubscribing from department store emails or sending those emails to an account I barely check. It meant avoiding trips to the malls or outlets and trying to pay attention during zoom meetings instead of online shopping during periods of boredom. What things can you do to decrease the temptation you have to spend money?
3. Minimize how much you eat out. If there’s one thing about me, it’s that I love to eat. I appreciate good food and like to enjoy it when I can. Although I cook a good deal at home, there is something about eating a nice meal from a restaurant that really makes my heart smile. If I wanted to save more money, I knew I had to curve this habit. Not eliminate it entirely, but at least minimize how often I ate out, because although it was enjoyable it was costing me a lot of money. I try to minimize brunches and have small gathering with my friends at one of our homes instead. Minimizing how often I eat out has saved me a great deal of money. If you also have a habit of eating out often, perhaps you should consider decreasing the frequency to save more money.
4. Wait before you buy. One of the things that has helped me save a lot of money was minimizing impulse buying. Impulse buying is when you purchase something spare-of-the-moment that you may not need and likely would not have gotten otherwise. In order to decrease this occurrence, I started implementing a new rule of “waiting before I buy.” If I see something I want to purchase that isn’t a necessity, I make myself wait a few days before I purchase it. If I still want the item after a few days, then I purchase it, but I’ve found that oftentimes I don’t need or want the item as much as I thought. Consider implementing a wait-before-you-buy rule to decrease your spending as well.
5. Invest what you spend. This is another life hack I’m planning to implement this year. It’s the art of investing the same amount you spend. For example, if you want to purchase something for $100, then you must also commit to investing $100 or putting $100 in a savings account. Thus, anything you want costs you twice as much. Doing this prevents you from buying things you may not need and also ensures that you build up your savings/investment accounts simultaneously. If you are truly committed to spending less, saving more, and living below your means, this is a life hack worth trying.