The way you think about money can seriously improve your finances. That’s right—playing clever tricks with your own mind can make you richer. Here are ten of these tricks! No matter what you’re saving for, understanding these tips can make a big difference. We’re not financial advisors, though, and this is all just our opinion. Consult a professional before making any big financial moves.
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Dream Big and Detailed
Everyone daydreams about being rich—but let’s get more specific. Close your eyes and imagine checking your bank account to see a specific number. This strategy is called visualization and when you clearly picture achieving your financial goals, your brain starts working on making those images a reality. You’re tricking your mind into thinking it’s already happening.
Be Specific
Similarly, you need to set specific financial goals like saving $50,000 in three years. Why? Because it gives you a clear target. Having clarity makes you feel more motivated and makes planning how to get there much easier. Ditch the vague wishes—start setting some real money milestones.
Play Hard to Get with Your Money
When something seems rare, you want it more—that’s the scarcity principle at work. Apply this to your money by setting strict budget limits because making your money seem scarce, even when it’s not, encourages you to think about what you really value. It’ll help you spend wisely, making every dollar feel worth saving.
Treat Yourself (to Investments)
We all have a soft spot for things we own and that’s a little bias called the endowment effect. Why not use this to your advantage? Start collecting assets like stock & bonds because the longer you own them, the more they’ll make you money. This will make you more focused on growing your wealth.
Give Every Dollar a Job
Think of your money as employees. Where would you assign them to work? Instead of seeing all your money in one big pot, divide it into categories like bills & savings. This strategy is called mental accounting. It tricks your brain into managing money better without making you feel restricted.
Don’t Throw Good Money After Bad
The sunk cost fallacy involves holding onto something because you’ve already spent so much on it. While it’s hard, learning to let go of bad investments or money-draining habits can save you a lot in the long run. Don’t let your past mistakes dictate your future financial decisions—sometimes cutting your losses is the best step towards a richer future.
Follow the Leader (But Not Blindly)
Everyone is a little influenced by what other people do and especially when they seem to be successful. Known as social proof, seeing others invest in certain stocks or start a savings plan can motivate us to do the same. Essentially, they’re your financial role models. Just make sure their strategies fit your own financial goals and risk tolerance.
First Impressions Count But They Don’t Rule
The first piece of information we get about something, like an investment’s initial cost, can stick with us and affect our future decisions. This anchoring effect can make it hard to see the current value of things. You should step back & reassess your finances with fresh eyes—not simply based on what you first thought or spent.
Fear of Losing
Nobody likes to lose—especially not money. Such a fear can keep us from taking risks that could lead to bigger gains so you have to find a balance. Start small if you need to but don’t let the fear of losing out keep you from potential financial victories. The biggest risk of all? Not taking any risks.
Make a Promise, Keep a Promise
Saying you’re going to do something out loud to someone else makes you more likely to do it and this is because of the commitment & consistency principle. Write down your financial goals, then share them with a loved one. In doing so, you’re more likely to stick to your financial plan and eventually achieve those goals.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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