You’re Saving Money Wrong. Here are the statistics: | by Marcus Tan | Apr, 2022

Photo by Mikhail Nilov on Pexels

According to the Federal Reserve, the American household has a median balance of $5,300 in their bank account.

Source: Value Penguin

While this amount might seem decent for a single person, you might find yourself in a tight spot if a crisis were to happen and you need to feed a family of 4.

Photo by olia danilevich from Pexels

Figure out what is your savings goal this year.

Is it $7,000, $8,000 or maybe even $9,000? Sounds like a lot of money in a bank account. This may seem hard to achieve or even unattainable to some.

Your barely scraping by, you don’t really have a 3–6 months emergency fund, perhaps now may be a good time to get started.

Let’s say you want that $9,000 in savings at the end of the year.

  • You need to set aside just $24.66 a day ($9,000/365days).
  • Which is around $750 a month ($9,000/12 months).
  • Or roughly $187.50 per week ((9000/12)/4weeks)

Seems manageable I guess, $24.66 a day doesn’t seem like such a daunting number.

Here is a trick instead of thinking you are only saving $24.66 a day but rather think of it as you are saving $9,000 a year, it will keep you even more motivated. By switching to this bigger number you are more conditioned to fight off the YOLO (you only live once, struggle that we all know too well).

Here is a very relatable quote by Oscar Wilde.

“I can resist anything except temptation.”

You and I give in to our impulses at times because we want to release dopamine which makes our body feel good. That speaks volumes.

In relation to our buying impulses, you don’t actually get the huge hit of dopamine when you are buying something, but rather it is the anticipation of buying something before you bought it.

Source: Psychology today

Companies all over the world know this too well and exploit this on its consumers:

Photograph: Michael Tubi/Michael…

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