It gives you an immediate hit of pleasure the chemical dopamine.
Why is it So Easy to Spend Money? - Money Mentors helping You Reach Financial Freedom
The problem is that it never lasts. But many of us struggle to do this. There have been many behavioural studies which reveal a few tips and tricks to help you improve your spending and savings patterns. I would like to share some of these with you.
A spending holiday? My wife and I visited India for a holiday in October last year. We were emotionally affected by the magnitude of the poverty we saw. Inevitably, it made us reflect on our own spending habits. Consequently, we decided to go on a spending holiday for 6 months! I suspect this spending holiday will recalibrate our discretionary spending in the future.
2. To protect your family with insurance
The science of spending Below I would like to share 11 ideas to help you better understand, manage and optimise your spending habits.
These ideas have been gathered from books like Happy MoneyDollars and Sense and my own personal and professional experiences.
They are listed in no particular order. Research confirmed that people spend less half! Experiences have a far greater impact on our happiness than things Research has shown that to maximise your happiness per dollar, you should spend money on experiences holidays and doing things rather than things clothing, electronics, etc.
None of my answers are scientific.
Research found that people that started on a Friday tended to spend their entire weekly budget over the weekend and therefore found it hard to stick to the budget during the working week. Research confirms that paying for a holiday a few months in advance significantly increases your enjoyment of that holiday. Practical tips: make sure you have travel insurance if you are going to prepay. Reward yourself regularly.
The more regular the reward say monthly or quarterlythe more effectual they will be.
7 times you're better off spending money than saving money - Business Insider
Make sure the goal is attainable and realistic. Start small and then stretch bulk bitcoins goal each consecutive period.
Which is easier to make and spend money spending habits tends to take a bit of time — few people can go cold turkey.
Delay discretionary spending by 2 weeks. You know how it goes; you are out shopping, see which is easier to make and spend money that takes your fancy, you buy it, take it home and its never seen again i.
It’s easier to spend money than save it - the science of spending
If you see something you like, write it down. If in 2 weeks you still want to buy the item, buy it using cash not card?
Research suggests that humans get more excited about the future than the past. Therefore, plan your purchases. If your goal is to buy a new handbag or special bottle of wine this year, plan it i. Research your purchase.
For example, spend less money on clothing and get a housekeeper — so you can spend more time with friends instead of cleaning. Finally, spending money on other people loved ones or charity gives you the most amount of enjoyment according to research. More cash flow management strategies and tips can be found in my previous blog here. We have a lot more of everything compared to people in second and third world countries.
Yet it seems we have endless things to complain about. I hope these tips help you to better manage your cash flow. If you need help, reach out to us as we will soon launch a new service to help people track, manage and optimise their cash flow.
You can register your interest with us. Next Post.