Psychological Tricks For Sticking to a Budget – EP 175

Ever wonder if you’re missing some secret tip about how to actually curb spending and make your budget work for you? Well, there is no magic wand to help, BUT there is one area of ourselves we often undermine in this whole process; our mind. All of our behaviors, including our spending habits begins in our brain so let’s start there! Join us as we take a look at the ways we can interrupt our patterns and behaviors before they turn into purchases we don’t need and financial goals we never achieve!

Sponsors: 

  • Your Emergency fund. It seems like everyone is either trying to start one or build one to a place they feel comfortable with. Your emergency fund wants you to know that whatever the size, keeping it in a high-yield savings account separate from your regular checking will help you stop dipping into it for things that are not emergencies. Any high-yield savings account without fees or minimum balance requirements will do. Currently we like Axos Bank because there are no maintenance fees, account minimums, and it has an impressive .61% APY. And when you sign up for an account through frugalfriendspodcast.com/axos you support the show at no extra cost to you.
  • House Plants. Brain stuff is heavy and complex so if you feel tired after listening to this episode, water your house plants. House plants are really cool when you can keep them alive and they tend live longer if you water them. Sometimes they need more soil I don’t know where the soil goes if there are no holes in the planter but whatever. House plants, shout out to all the ladies who were plant moms before 2020.

Headlines

What the Internet has to say:

This article from Forbes outlines some cognitive science basics that might just help us in sticking to our budget!

What Jen + Jill have to say:

  • Beware of introductory offers! Primarily talking about credit cards offering low APR, but this can apply to other areas too!
  • Understand the thoughts and feeling behind what’s leading you astray
  • Recognize and combat decision fatigue
  • Avoid envy inducing social media channels

More from the Internet:

This article from vox gives us a list of psychology tips and mental tricks to stop impulse buys and cut spending while shopping

More from Jen + Jill

  • Behavioral economics can teach us a lot about why we tend to neglect our budgets and overspend, but one theory that sticks out is the ‘present bias’; valuing the present gratification instead of the long-term. Even being aware of this reality can help us interrupt our spending habits
  1. Don’t go shopping without a list
  2. Double check that you’re getting the best value
  3. Don’t shop when feeling emotional
    • Emotionally vulnerable
    • Vulnerability without protection leads to exploitation
  4. Sleep on it before purchasing large items
  5. Say no to sales unless the item is already on your list

BILL OF THE WEEK – 

Thank you Laura from New York for sharing your target credit card bill that you FINALLY paid off!! YAY! And got rid of it!

If you want to submit your bill of the week visit frugalfriendspodcast.com/bill to leave us a bill

Lightning Round 

Psychology tricks we use to keep from overspending

  • Jill- 
    • I don’t scroll shopping sites for ‘something to do’
    • Shop perimeter of grocery store (keeps me out of the middle where the most ‘unnecessary’ items are)…of course you may find me down the condiments aisle or snagging a frozen pizza. I AM still human.
    • I do a review of my cart before check out to make sure I still feel good about what I’m bringing home
    • #patience
    • Self check: do I need it, can I make it, can I find it less expensive
    • If I feel stressed or uneasy it’s a sign I’m not at peace about buying it…#walkaway
  • Jen- I unfollowed friends while paying off debt, now I avoid physical clutter so I can have more space for cognitive energy

Wrap-Up:

Thanks so much for listening! Keep leaving us reviews on iTunes or Stitcher, and sending the screenshot to frugalfriendspodcast@gmail.com AND share our most recent episode on social for a chance to win a copy of the Frugal Friends Workbook!

Thanks for listening! See you next week!

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore