Training your brain to save
| News |
What's the best way to save money? Easy – don't spend it. Sounds simple - so why is it so hard? Studies of the psychology of saving have linked our reasons for spending money to the brain's chemistry. Observing the brain with MRI, scientists can actually see pleasure centres light up as the brain gets a rush of feel-good dopamine from buying things.
But – the immediate high brought on by our new purchases, can often be followed by a crash when we check our bank statement. If you have ever experienced this hangover effect and wished you were better at saving money – you are not alone. According to a recent survey by TD Canada Trust, nearly 80% of Canadians say it is “too hard” to save money.
But it doesn't have to be hard and we don't have to do battle with our brains in order to save money. Instead, use this understanding of how the brain works to make your savings grow.
The next time you are thinking about buying something that is not absolutely necessary, remind yourself of what little ongoing pleasure you got the last time around. Is a week's worth of dinners out or a closet full of new clothes, really worth living pay-cheque to pay-cheque for? Before you buy, think carefully, do you really want it? Will you still be happy about your purchase after you check your account balance? With some practice, this new attitude will become second nature and since unnecessary purchases are by definition unnecessary - chances are you won't miss whatever was draining your bank account in the first place.
But, of course, there are nights when you really don't want to cook or an event you really need a new outfit for. You'll find there is a bit more wiggle room for these occasions when you are selective about what you spend day-to-day. Treat yourself occasionally and you'll get the same rush from your purchases – but the crash will be replaced by a soft landing as you're cushioned by the savings you've accumulated. www.newscanada.com
| < Prev |
|---|
