5 Extreme Ways to Save That Actually Work
When Tennessee resident Lila Wilson needed to put some money in the bank, she came up with a
creative way to save a few dollars
.
"I collect $1 bills that have 'L' or 'B' on them, as those are the initials of me and my husband's first names," she says. Those bills go into her savings account. "It feels like a game of chance when I receive change from a purchase and anxiously look to see if any of the bills have those letters on the front."
Wilson shared the saving strategy with a few girlfriends, who subsequently challenged each other to a see who could save the most dollars in a year.
Their game, along with literally freezing your credit card in ice or snapping a rubber band on your wrist when you think about a mall, are just some of the weird ways people "trick" themselves into saving money.
Do these oddball tactics actually work?
Most do not, according to Martin Lindstrom, author of
Buyology: Truth and Lies about Why We Buy
, who likens our saving innovations to going on a strict financial diet.
"They are a desperate attempt to show others or yourself that the spending will not continue," Lindstrom says. He explains that people typically enforce stringent spending habits after a particularly nasty shopping splurge to punish themselves. "After the punishment period is over, you find a way to justify not being on a diet anymore," though, and essentially fall off the wagon.
The strategies that do stick, Lindstrom explains, are the ones that don't use a reward and punishment model and promote a lifestyle change instead. Here are a few saving schemes that actually can keep your bank account in the black:
You should consider
leaving your credit card at home
the next time you visit a shopping mall. Several studies have shown that
shoppers are more frivolous when they pull out the plastic
. A
by researchers at Carnegie Mellon, Stanford and MIT, for example, indicated that using credit cards "anesthetizes the pain of payment" and makes it easier for people to spend. As such, those who want to reduce the chance of a splurge should carry only cash.
Want even more guarantee you'll save?
"
Only bring $100 bills
with you," Lindstrom says, pointing out "You won't want to break it to buy a pack of chewing gum." Depending on the retailer, sometimes you literally can't.
Lindstrom says you can reduce the amount of pricey purchases you make by refusing to buy anything that costs $50 or more the day that you see it.
Scientific research has shown that shopping
activates key areas of the brain that release the happiness neurotransmitter dopamine, which, in turn, boosts our mood and makes us feel better. But, Lindstrom explains, the mood swing doesn't often last past the point of purchase.
To escape falling victim to a shopping high,
wait two days
. If you still feel excited by the product, go back and get it.
If you know you're inclined to splurge while shopping, you may want to
take a frugal friend
with you. You can enlist this buddy to talk you out of potentially frivolous purchases -- or approve sound ones.
"It works similar to diet programs such as Weight Watchers," which enables dieters to lose weight through peer-to-peer counseling and support, Lindstrom says. (Left unsaid: This is also how 12-step programs such as Alcoholics Anonymous works. Recovering addicts must have a "sponsor," also experienced in the ways of addiction, who can be turned to in times of temptation.)
Those who overspend at the grocery store can benefit by emptying out cabinets for a survey of the goods. Lindstrom says they'll find products they love, some that are used occasionally and others that have never been opened.
"
Identify your graveyard area
and then cut it off," Lindstrom says, referring to the never-used products. "The mental exercise will help you buy less crap."
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