Extremely Useful Life Hacks That Could Potentially Help You Save Money And Become A Better Spender

With the current state of the world, a lot of people are finding it challenging to manage their expenses while the price of living is getting more costly by the day. It's a constant battle each month, which means that some alterations have to be considered to reduce spending. 

It's never easy to alter your beloved habits and be content with much less. However, understanding that your finances have always been managed poorly can help you transition from being a reckless spender. 

It's always easier said than done, but once you get used to it, you will appreciate how much money you managed to save from waste. Spending less on things that are not that important will only make your life better. 

Some people have "life hacks" that help them manage their finances more efficiently. They help you understand things better and give you more motivation to commit to change. 

A Redditor who goes by the username u/DetachedMentally made a post on the r/AskReddit subReddit with the following question: "What are some interesting life hacks for saving money?" The user received a lot of helpful answers to their question.

Scroll down to check out the full Reddit post, and scroll a little further to read the comments from the original post. 

Here's the original post by Reddit user u/DetachedMentally:

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1. "Don't have kids"

--anon

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2. "Always eat before going food shopping"

--Trackull

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Understanding Behavioral Economics in Spending

Behavioral economics offers insights into how psychological factors influence spending habits. Dr. Dan Ariely, a pioneer in this field, emphasizes that our emotional responses often drive financial decisions rather than rational calculations. This understanding can help individuals recognize the triggers that lead to impulsive spending, which is especially relevant when trying to save money.

Research shows that awareness of these psychological influences can empower consumers to make more informed financial choices.

Financial Literacy and Behavioral Economics

Understanding the principles of behavioral economics is crucial for making informed financial decisions. Research from the Journal of Behavioral Finance indicates that cognitive biases can significantly impact our spending habits. For instance, individuals may fall prey to the sunk cost fallacy, where they continue investing in a failing endeavor due to the resources already committed. Recognizing these biases can empower individuals to make more rational financial choices.

3. "When at the grocery, look at the price/oz or whatever unit it is instead of the total price."

It's usually posted in one corner. It's not going to save you tons of money, but it does add up. Plus it takes out the guess work when comparing similar items.

--Richards_Brother

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4. "I don't smoke but live my financial life as a smoker."

Meaning every Monday I transfer the sum of one weeks worth of cigarettes to my savings account. If people that earn less than me can afford smoking, so can I.

--kebabhue

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5. "Don’t buy something that you normally wouldn’t buy just because you have a coupon."

--Rwill113

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Studies indicate that small changes in spending habits can have significant long-term effects on financial health. For instance, a study in the Journal of Consumer Research found that individuals who track their spending and set clear budgets are far more likely to save money effectively. This highlights the importance of practical strategies in managing finances.

Another common hurdle in financial decision-making is the emotional aspect of spending. A study from Stanford University highlights that emotional spending often occurs as a coping mechanism for stress or anxiety. By becoming aware of emotional triggers, individuals can develop healthier spending habits and prioritize their financial goals.

6. "Get yourself a library card."

It's not just books, but also movies, workshops, education, software, computer time, music. I've probably saved thousands on all sorts of c**p.If it weren't for the library, I probably wouldn't have been introduced to awesome books like American Gods, The Way of Kings, All Systems Down, or The Road.

--anon

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7. "I have a friend who, at the end of each pay period, moves whatever she has in checking into savings."

It doesn't matter if she's got $5 or $50 in the account, it goes into savings the night before payday.

--Gigglefruit358

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8. "learn to cook! 4 or 5 reliably delicious recipes will go a loooooong way."

--joo_ish

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Practical Money-Saving Strategies

Implementing a 50/30/20 budgeting rule can help individuals allocate their income effectively. This method encourages individuals to spend 50% on needs, 30% on wants, and 20% on savings. Research supports that having a clear budget can reduce financial stress and increase savings over time.

Additionally, using apps to track spending can provide valuable insights into spending patterns, helping individuals identify areas for improvement.

Practical Steps for Better Financial Management

Implementing budgeting techniques can significantly improve financial well-being. Research shows that individuals who adhere to a consistent budgeting plan report higher levels of financial satisfaction. Techniques such as the 50/30/20 rule can provide a simple framework for allocating income toward needs, wants, and savings. This structured approach can help individuals regain control over their finances and reduce anxiety related to money.

9. "If you can avoid it, never take out a payday loan."

--Creative_Uzername

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10. "Buy secondhand!"

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11. "Making one extra payment on your mortgage per year will reduce a 30 year mortgage to roughly 17 years."

---thersites-

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The Importance of Financial Literacy

Improving financial literacy is crucial for effective money management. Educational programs that focus on budgeting, saving, and investing can significantly enhance individuals' financial decision-making skills. Studies indicate that individuals with higher financial literacy tend to make better financial choices and experience less financial stress.

Incorporating financial education into daily life can empower individuals to take control of their finances and build long-term wealth.

Additionally, engaging in regular financial reviews can help individuals stay accountable to their goals. A study from the Journal of Financial Planning indicates that individuals who conduct monthly financial check-ins are more likely to achieve their financial objectives. By tracking their progress, individuals can make informed adjustments to their strategies and celebrate their successes.

12. "Only drinking water is a solid one. Soda at restaurants or other drinks add up a lot."

--Kings-x-Dynasty

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13. "If you can buy a tool to complete a repair for the same price as the repair itself, buy the tool and repair it for free next time."

---thersites-

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14. "When buying online, leave items in the shopping cart for awhile."

There is a good chance that the website is tracking this, and will lower the price overtime to entice you into buying.I've saved a lot by being patient. Like when I got a surround sound amp for $350 that was listed everywhere for $450 to $500, just by leaving it in the online shopping cart for a week.

--Whatmeworry4

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15. "Make your own lunches for work."

The cost of making/preparing your lunch for the week can be less than what you pay buying one days lunch.Also, can provide health benefits.

--imissmydogloads

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16. "If you're low income, **apply for food stamps** (or whatever your city/state calls the equivalent)."

Seriously, there's no shame in it. I neglected to apply for several years when I was really struggling because I had to unlearn the stigma that they had when I was growing up. Times have changed. ***If you need help, don't be afraid or embarrassed to ask for it.*** I qualify for the maximum amount where I live. It doesn't cover my monthly food expenses but it gets me through a few weeks and I could make it stretch if I really needed to. It never hurts to apply.

--BabaYagatron

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17. "Don't buy the cheapest option."

Often the middle priced option will be the best value. Things that are too cheap are worth what you paid for them.

---thersites-

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18. "Don't drink. Alcohol is a money drain."

--kryptonianjackie

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19. "This is not mine, but 'The 72 hour rule" is pretty damn helpful."

Basically, the gist of it is, if you want something that is not a necessity, instead of buying it immediately, add it to a list (in my case I use a spreadsheet, but whatever works), then wait 72 hours.If after 72 hours, you still want it, then you can buy it. It seems that 80-90% of the time, after the 72 hours is up, I don't end up buying the item I thought i wanted.The reason I like doing it with a spreadsheet is, I can then at the end of the year, easily add it up, and see how much money I DIDN'T impulsively spend.EDIT: It took me a while, but I remembered where I picked this idea up from. It initially came into my world from listening to the ChooseFi podcast interview with the Frugalwoods.Here's the podcast: https://www.choosefi.com/012-living-frugal/and here is her original article on it:https://www.frugalwoods.com/2017/01/09/my-foolproof-method-to-stop-impulse-spending/

--Icarus_Jones

aliciablasco

20. "I try to cost things as portions of better, or more fulfilling things i.e. A coffee is 1/10 of a new game. Ten meals out is a weekend away etc."

--_mexicola

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Well, these are all very useful tips. Managing finances is something most people struggle with and a battle they are used to losing.

We hope this list can potentially help you in the future. If you enjoyed this list, make sure to check out similar content on our platform.

Psychological Analysis

This discussion highlights the intricate relationship between psychology and financial behavior. Understanding how cognitive biases and emotions influence spending can empower individuals to make more rational financial decisions. By fostering financial literacy and implementing structured strategies, people can improve their financial well-being.

Analysis generated by AI

Analysis & Alternative Approaches

In conclusion, understanding the psychological factors influencing financial decision-making is essential for fostering better money management skills. By recognizing cognitive biases and emotional triggers, individuals can make more informed choices. Implementing practical budgeting techniques and regular financial reviews can lead to greater financial satisfaction and security.

Analysis & Alternative Approaches

Ultimately, understanding the psychological factors influencing spending can lead to more informed financial decisions. Research suggests that implementing practical strategies and improving financial literacy can significantly enhance financial health. As noted by behavioral economists, 'Empowerment through knowledge is key to achieving financial stability.'