5 Tips for Saving Money with Minimal Stress

In the near future, many of us will have to save money.

This is psychologically difficult for almost anyone, let alone those who have been living on strict economy mode even before the current rise in prices. Due to the mechanism of hedonic adaptation, it is extremely difficult for people to lose the standard of living they have become accustomed to. Any forced reduction in spending is perceived as a threat to their well-being. Especially when income was not too high to begin with. And this only adds to the stress of uncertainty.

If a person cannot fulfill their basic needs, making a purchase becomes important. However, the inability to buy something that was available recently can be challenging to accept.

There is no way to go through financial shocks without losses, but there are ways to make sure that saving money does not become a constant and strong source of stress.

Psychologists say that saving can benefit not only your wallet but also your mental health, as perception plays a crucial role. It can help you regain a sense of control over the situation, especially during times of economic and political instability. Combatting stress by feeling empowered to influence your life is one of the most effective ways. Therefore, it is essential to keep this in mind and avoid solely focusing on deprivation.

Here are five tips for reducing stress when saving.

TIP #1 – Monitor your emotional state

We previously discussed the impact of stress on financial decision-making. Quick decision-making situations make it challenging to evaluate possible consequences, which heightens the risk of financial errors like investing in suspicious companies. Moreover, some individuals indulge in unnecessary spending to compensate for negative feelings. To ensure prudent financial decisions, it is vital to calm down and seek support through various methods.

Consider these ones that are worth considering.

• Get into nature. Taking a walk in the city park can help in reducing stress levels. If you have the chance to avail yourself of nature on the weekends, do so. Movement reduces the concentration of stress-triggering substances in the body, like cortisol and norepinephrine. Sitting by the water is also helpful. Research reveals that the sounds of water and how light reflects on its surface have a calming effect on the mind.
• Don’t read the news around the clock. They are necessary, but they are also a source of stress. One popular tactic for reducing their impact is to set aside time to read them, say, 15 minutes in the morning and evening. This way, you won’t be subjecting your body to stress every time you pick up the phone.
• Delight yourself more often. There are things that almost guarantee a reduction in stress levels – for example, delicious food in the company of loved ones, massage, hobbies. These things are commonly called small joys, but they have a great impact on psychological well-being. It is worth planning them specifically so that the amount of pleasant emotions in life does not decrease.

TIP #2 – Don’t give up on purchases that truly bring joy

Not always decisions to make harsh economies are justified. Psychologists describe situations when a person, even while only anticipating hard times, begins to deny themselves their usual things – for example, gritting their teeth, buying the cheapest cheese instead of their favorite, although this expense would not have had a significant impact on the budget and would have brought positive emotions.

During a crisis, people typically reduce their expenses on non-essential items such as streaming service subscriptions, gym memberships, visits to nail and hair salons, hobbies, museum trips, dining out, food delivery, and take-out coffee. However, some of these expenses offer more than just an optional luxury as they also provide comfort, save time, and bring joy.

Research shows that people do not regret expenses that provide enjoyable experiences and save time, like dining out with friends or family. Therefore, it is valuable to examine what expenses to prioritize in order to avoid missing out on sources of happiness.

The “lipstick effect” term coined by economists signifies a rise in sales of cosmetic products, particularly lipstick, during economic crises. This serves as a cost-efficient means of indulgence amid the impracticality or inaccessibility of big-ticket purchases.

Coffee to go can also be a small pleasure. Financial gurus commonly advise giving it up, but if it’s an important ritual for you, it’s better to not give it up.

It’s better to think ahead about which optional expenses are worth keeping, so as not to regret later for being wasteful.

TIP #3 – Block sources of temptation

When you understand what you can refuse, clean up your information field. Unsubscribe from email newsletters of online stores and social media accounts that trigger an immediate desire to buy something. Following a savings plan will be easier. You’ll spare yourself the frustration of denying yourself a purchase and reduce the risks of impulsive spending.

Psychologists believe that willpower is not limitless. The more we use it, the quicker it’s depleted. Therefore, people who are regularly forced to make difficult financial decisions, and cutting expenses is exclusively among them, are more prone to succumb to emotions and make irrational choices.

According to one study, those who struggle with money and are forced to deny themselves something are more likely to engage in uncontrolled consumption of food and drinks right in the stores than those whose financial situation is stable. Therefore, it is wiser to protect yourself from destructive stimuli in advance.

TIP #4 – Train your brain to save money

In fact, the brain doesn’t really like spending money. When we have to part with it, the same processes occur in the brain as in the moment of experiencing physical pain. That’s why most people don’t feel much joy when paying for utility bills, paying off debts or making mortgage payments. But with shopping it’s different. Every time we buy something cute, we experience pleasant satisfaction – the level of dopamine in the brain increases. That’s why it’s not always easy to resist impulsive purchases.

Psychological tricks exist that can assist you in evading purchases of unnecessary items and preparing for savings.

• Decide on your daily spending limit and aim to spend less than your plan. Even if your initial savings are minuscule, it’s alright as long as you realize that you have the ability to save without adverse effects. It’s a means to alter your mindset from feeling restricted to acknowledging that you can save money.
• Studies demonstrate that the brain requires positive feedback to establish a new habit and perceive the efficacy of its efforts. Therefore, transfer the saved money to a separate account and frequently review it to make your progress more perceptible. This approach will strengthen your brain’s confidence that you are on the right track.
• Personal finance specialist Mark Kantovitz advises calculating how much an hour of work time costs when experiencing an unstoppable desire to buy something. This will enable you to determine the amount of time you need to work to compensate for the expenses of the purchase and make a well-considered decision.
• When you have the urge to spend excessively, remind yourself of the mantra “I have everything I need” and repeat it a few times.

TIP #5 – Find motivation

Another way to ease your brain into economy mode is to give meaning to what is happening. It has been proven that the better we understand why we take action, the more strength, energy, and desire we have to do it. Therefore, before starting a plan to reduce expenses, sit down and formulate a goal. It can be very simple and obvious. For example, “I will need to do repairs anyway, so I need to save up” or “I want to maximize my savings while the economic situation is unstable.” If you sincerely believe in this goal, it will help you to easily introduce restrictions into your life and cope with them.

If you cannot formulate a financial goal, try the following exercise. Imagine that you won $10 million. What 15 things would you buy with them? Then analyze why you need these things. Perhaps you want to buy something to demonstrate to others your new status as a wealthy person. Something may be due to advertising. And something – to give as a gift to loved ones.

As a result, on the list, there will remain two to three things that you sincerely want to buy exclusively for yourself. They can become your main financial goals.