Save Money Mindset: 7 Exercises To Practice Daily

Dear Happy Investor, do you know that the right mindset can make you save money? Everything in life is about mindset, and your success depends entirely on it. So too is saving money, which becomes considerably easier with a certain mindset. That occurs because your mindset influences your emotions and your actions. Simply put, the way you think determines the way you act. The same applies to making and saving money. 

Here you will find 7 simple yet effective practices to harness the power of mindset to save money. We call this ‘Save Money Mindset’. Let us begin!

Saving Money Mindset 1. Reduce your Ego and Desires

The best exercise for creating a Mindset for saving money, is to reduce your Ego and desires. First, let's look at our desires. We spend money because we buy something. We buy material and immaterial things, such as experiences or eating out. The more we desire possessions and experiences, the more money we spend. In other words, the more you desire, the less money you save. 

One (not so simple) way to reduce your desire is by reducing your Ego. 

Basically, all spending is good. Whether you buy an expensive car or go out for a nice dinner. There is no judgment because only you judge those expenses. If it feels good to you, then it is good. And smart spending even contributes to a better life. Think about being together and learning or experiencing new activities. 

Other expenses, however, are less "good." You might say: unnecessary. This kind of spending often has to do with Ego. You buy material possessions to boost your Ego. When you buy a fat Volvo V90 (which I will pay for with my dividend one day), in reality it is to boost your Ego. Like "look how successful I am". While in reality nobody cares that you drive such a big car. Even better: your friends and family might find it annoying (think of jealousy).  

There is nothing wrong with spending money. Also not on (questionable) superfluous things like an expensive car. But if you ask me, it's better to save money in the early years. And invest this money. Make savings work for you. Accumulate return on return. And after 10 years you can buy an expensive car from the return/dividend.

Saving Money Mindset 2. Reflect on your spending patterns

How do you feel when you make a purchase? Sometimes we buy things for no real reason like we try to fill an emotional void with shopping. We may feel bored, have self-esteem issues, or try to compensate for a relationship. Many people go shopping when they are stressed, and other people like to buy things that they don't need to impress others. Whatever it is, there are often subconscious reasons why we buy stuff we don't need. 

So, every time you are about to make a purchase, ask yourself: "do I really need this? Why do I want it?." Be honest and ask yourself if that item will add any real value to your life.

It is a simple way to shift your mindset to help you save money. Nevertheless, it needs consistency and honesty with yourself.

You can even become a minimalist and buy only what you need. It will not only help you to save some money, but it will also help you boost your mental health. Also, it contributes to a better environment simply by consuming. 

On the other hand, life is about fulfillment, pleasure and love. From a rational aspect, minimalism is the best choice. Financially, it would also save you a lot of money. But this behavior must be consistent with your mindset. A “big eater” cannot become a vegan overnight and live on 2000 Kcal a day. There is a different equilibrium for everyone. Find your balance between living pleasantly and spending money responsibly.  

Try not to change radically, but incrementally. Step by step, or as they say in Tanzania "pole pole" (slowly). 

And, I keep pointing out, remember that there is also another way. By saving more in the early years, and investing this money, you can become extremely prosperous in the long run.

Saving Money Mindset 3. Pay attention to where your money goes

“What you focus on grows” — Esther Hicks.

How does your wallet look right now? When your wallet is cluttered, it reflects how you treat your money. For example, have you ever run out of money and wondered what you spent it on? It is crucial to pay attention to our money and where we channel it.

A simple practice to achieve this is to write down every expense you make. By the end of the month, you can find out where you have spent most of your money; some mobile apps can help you with that.

Keeping track of your money allows you to create awareness of what you are using it for and better spending habits.

However, make sure it doesn't start controlling your life. It is better to think in abundance. To think in making extra money. This is not only more fun: making money is also easier than saving money. After all, saving money can sometimes feel tedious and heavy. Moreover, you can only save up to a certain "bottom". There are always fixed expenses. But with making money, there is no limit. Believe in this, and you will become more successful financially.

Saving Money Mindset 4. Buy without guilt

Have you ever felt guilty about spending money on something? Sometimes we think that saving money means never buying anything or only buying cheap things, but that's just not true. Instead, it is about learning to spend consciously.

An important exercise for a Money Saving Mindset, is by focusing on making money. The more money you make, the more money you can save. It's that simple. And again, this insight starts with yourself: in your own mindset.

If you want to make more money, you need to act like someone who already has that money. This way, you will have a better relationship with money and attract more. This is what adherents of the law of attraction strongly believe in (and it works).

You need to spend a portion of your monthly budget on something that you may not need, but it will make you happy. When you work very hard to earn money, you need to reward your brain. It will produce chemicals that motivate you.

Spending money, by the way, is not necessarily something physical. It can be a visit to the beach, plants for your house, or a book you like. The rule is that it improves your life in some way. That's helpful, too. And motivating. 

And if you buy something, don't do it with guilt. If it adds value to your life and you're sure you want it, you shouldn't regret it. In contrast, be grateful because you can buy things, pay your rent and put food on the table. This is not a given in every country. 

Doing this will drastically change your mindset about saving money. You will see money as a friend and not a problem. And even better, it will allow you to save money because you will only buy what adds value to your life. 

Saving Money Mindset 5. Work on your relationship with money

Do you see money as a friend or a problem? We all have limiting beliefs that live in our subconscious minds. We may not be aware of them, but they affect our thoughts, emotions, and actions.

Many of those beliefs come from our family, community, schools, or wherever we grew up. For example, maybe your parents always complained about money and said that "money is the root of all evil" or "rich people are mean." You may have subconsciously adopted those beliefs, and now you see money as a problem.

When you dislike someone, you unconsciously (or consciously) try to avoid that person. The same thing happens with money. If you see money as a problem, you will focus on debts, lack, and scarcity. You will be okay with not making much money because you think your life should be like that. You will avoid new ways to make money because you unconsciously think it is not for you. 

Choose to build a good relationship with money. Be grateful. Money is a wonderful tool. By using it correctly, you can make more of it. And the more you have, the better your life becomes. And that of others. At least, if you learn to manage money. And that's exactly what this article on Money Savings Mindset helps with. Think of money as a tool. Let it work for you. Enjoy it in moderation. After all, you are already rich in thought and grateful for what you have. All the extra is nice to have.

If this is new information to you, you might want to read the book "Think and Grow Rich" by Napeleon Hill. This is the first start. There are many interesting books to read about money and mindset. I have read almost all of them, and hence my articles are intertwined with these types of insights. Nevertheless, it is good to also study these kinds of books yourself. It will significantly improve your life in many aspects.

Saving Money Mindset 6. Practice mindfulness

Mindfulness is the practice of paying attention to the present. Sounds easy. However, our minds are constantly wandering between the future and the past. We are always busy worrying about what happens next or attached to our memories. That makes us stressed, anxious, sad, afraid, angry, or even with a false sense of joy. Simply put, our mind focuses on something that no longer exists or hasn't happened yet.

In this sense, we don’t control our minds, our minds control us.

Mindfulness and meditation are like a gym for the mind. We train our attention to focus on the present. That’s very important for many aspects of our lives, including our mindset for saving money. Living mindfully helps you know when you need something and when you don't. 

Saving Money Mindset 7. Set an intention to save money

Setting an intention means setting a conscious goal and stating that you will achieve it. In the case of saving money, you need to come up with a clear intention of how much money you want to save and when you will have it.

For example, say to yourself: "I will save [X amount of money] each month," or "I will save  [X amount of money] by the end of the week." Note that we are talking in the present tense here. It's not a "what if" or "if then." It is certain. It's decided. It's final. 

You're saving money.

You're rich. 

You live your life on your terms. 

Be specific and clear in life. Define big yet realistic goals. And remind yourself every day full of intention that you are accomplishing this. Also, investing in stocks and real estate investing will help you achieve your financial goals. 

Conclusions

A Mindset for saving money involves programming your thoughts. By thinking differently and positively about money, you will attract more of it. Also, a mindset for saving money involves having a lot of self-control. Don't worry, practice makes perfect. It means being in control of your mind, emotions and instincts. When you create a strong money mindset, it will inevitably have an effect on your spending habits and other aspects of your life.