According to research, 60% of adult do not have enough money to save to cover a 1k emergency and nearly a third of those people would have to result to borrowing money to pay for any unexpected events, which as we all know adds up to a whole lot of money in the long run when you account for interest on top of that, but it’s with this information that it’s no surprise that America are just not saving enough money, Even when you go back and look at things historically the average American savings rate really peaked in the 70s with the savings rate of about 12 percent and since then, it’s being a very slow and steady decline.
Now this year, guess how much the average American is saving, it’s 35 percent of their income and that also include ROTH IR A and 401k contribution which basically when you account for inflation, it’s almost as though Americans are pretty much saving nothing.
Now what’s even more disheartening is that during recession, savings immediately spike upward, then as soon as the economy starts doing better the savings rate starts trending back downwards, this can tell us that people can and do cut back if needed and as soon as things start looking optimistic, they go back to their normal spending and Starts saving less.
Now although we cab certainly look at external economic factors and wage growth to be the culprit for this but I really believe that at the end of the day, really up to us, our personal responsibility to not only, learn about saving but over money but also do the best we can given the income that we have and when it comes. As to saving money, these are the 5 strategies that I found that worked exceptionally well to save a lot more money without ever feeling like your cutting back, even though you are and each of these money saving tricks can be implemented immediately as long as you just follow, this strategies.
Now my first strategy is to not spend any money, you all might be wondering what I mean by this but the first strategy that used is that if there’s anything I Want to buy, I never but it now, and instead I buy it tomorrow, now this one is really all about cutting down on impulse purchases that you make without ever realizing it and this one is because many studies have shown that shopping actually release dopamine in the brain that brings about the sensation of happiness and we’ll being and if we go even deeper down the rabbit hole.
Because this is what I was doing, all night and I was researching the effects of shopping on the brain, don’t ask me why but I found the stuff interesting and this is the best part about all of this is that they found that dopamine hit doesn’t come from actually buying the item that you’re going to get.
Instead it comes from the anticipation of buying the item itself, so from this we can basically conclude that buying the item itself, so from this we can basically conclude that buying something won’t necessary give you that fun and excitement that you’re looking for and you can get all of the same enjoyment from shopping if you don’t actually buy anything and just window shop instead.
And that happens to save you a lot of money, this is pretty much the strategy that I’ve utilized all the time and for something that I see that I want go get, all I do is basically just don’t buy it right there and then instead just, sleep on it and wait to buy it the next day, by then if I still want it most of the time I’d get it, but I think most times than not, the desire to buy that thing just subsides and I no longer want it the next day, I’m positive that if you just implement the same thing you can cut back and save a lot of money without any feeling that you’re cutting back or saving money and just be waiting 24 hours.
The second strategy is this, now assume you’ve waited a day and you’re thinking about buying something, then think to yourself if someone offered me a cash equivalent for this item right now, would I rather just have the cash it sometimes we forget about how much something really cost, when we’re so fixated on buying the things that we want but start thinking to yourself, if you have a choice between buying this item or getting paid that exact amount of money, which one would you choose.
But anyway if you decide not to buy something instead and save the difference, it’s almost as though you just got paid to save, now I know this is a bit of a flawed way of thinking cause I cab totally but when you apply this mentality to every day purchases, then you don’t send much time thing about it and then it really gets you prioritizes on what’s important and what’s going to give you the most long term value and really makes you think about the aspect if saving money then the aspect if buying the things that you want, now it’s becomes evident when you look around and then all of the things that you’re bought, how much if it, do you wish you could trade back on the snap of your finfe4 and get back what you send on it.
And I have a feeling that probably half of my wardrobe will be gone with things that I bought and never really wore, and they just were not worth it especially when you divide how much times you’ve used something versus how much it cost.
Like the 100 dollars pair of shoes that you wire twice, that means, that it cost you 50 dollars every time that you’ve worn that shoe, or that 300 boat speaker tat you’ve user 5 times in the last year and that means that it was 60 ever time you’ve user it, so when you’re thinking of everything in terms of how much it cost you owe use, or also whether or not you would have taken the cash equivalent, if you had the choice and I guarantee that by doing this you’ll end up spending a lot less and by the virtue of that you’ll end up saving a lot more

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