Is Money Saving a problem for YoU - Then Read It - It may help you !
Everybody knows having a
budget is a good idea. But actually sitting down, looking through your
finances, and writing down how much you'll spend on everything this month?
That's easier said than done. Sure, many people make and stick to a budget. But
for the rest of us, Duke
University
It’s Rainin’ Cents -
The Common Cents Lab is a
department in Duke
University
For one study, the lab
partnered with the mobile-banking app Qapital. They presented millennial-age
users with their 40 most recent purchases, and asked them to rate how happy they
were with the decision to spend that money. The study analyzed 30,000
transactions overall. First, the good stuff: the users rated expenses related
to community, healthcare, rent and utilities, arts and entertainment, and
education the highest. "Overwhelmingly, these all have to do with
self-preservation or enriching oneself," the report noted.
But what about those
regrettable purchases? The users' lowest ratings went to digital subscriptions,
convenience-store buys, and purchases made at bars, coffee shops, restaurants,
and fast-food joints. The very lowest ratings went to bank fees, for obvious
reasons. Beyond the digital subscriptions (are you really watching that much
Hulu?), these lamentable expenses all have one thing in common: food. It should
surprise no one that food and drink purchases bring us the least pleasure of
all of our monthly expenses.
The researchers realized
this, too, and figured out a way to fight it.
Once, Twice, Three
Times Chipotle -
Like we said before, personal
budgets are infamously painful. But get this — the research is mixed on how
effective they are at actually saving you money. "... from a research
perspective, the jury is still out on the benefits of budgeting," the
report says, vindicating budgetless slackers everywhere. "It is unclear
how successful budgeting is at actually reducing expenses even in the short
term, given the behavioral challenges associated with creating and adhering to
a budget."
The researchers wanted to
find a better way. They surveyed more than 1,350 people and asked them to rate
each of the following options on how confident they were that they could follow
it and how much they thought they would save by using it.
1. Only spend a maximum of $[20] (Rs.1417.2) to eat out.
2. Only spend $[40] (Rs.2834.4) per week eating
out.
3. Never eat out.
4. Only eat out [two] times per week.
5. Only eat out on the weekends.
While options 1 and 2 are the
most traditional — they're the rules you might use if you follow a budget — it
was options 4 and 5, the "rules of thumb," that got the best
response. People were the most confident that they could follow those rules and
believed the rules would save them the most money.
The lesson is clear: if you
want to save money, try limiting "spendy" activities instead of
limiting the amount you spend. Digital subscriptions eating at your bank
account? Limit yourself to the two you use the most. Online shopping bleeding
you dry? Keep a list of things you actually need, then limit yourself to only
buying the items on that list. And of course, if you regret how much you eat
out and order delivery, take a cue from the Duke researchers: decide how many
times you're allowed to dine out every week, and stick to it. Your bank account
will thank you.
For another unorthodox way to
manage your money, check out "The No-Spend Challenge Guide: How to Stop
Spending Money Impulsively, Pay off Debt Fast, & Make Your Finances Fit
Your Dreams" by Jen Smith. We handpick reading recommendations we think you
may like.
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this, so don’t forget to Share and Comment on it–
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any additional information on my blogs then you are free to ask about that in
comment section below -
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