Updated: September 12, 2020
Do you want to learn how to save? We can all agree that it’s important to save, but why do most people fail at saving money?
If you’re one of those people who have been struggling at saving money, then I’m going to share with you today a simple yet effective strategy.
A simple saving strategy that you can do
Do you want to learn how to save money? Then you just need to do two things.
First, set aside a piggy bank. You can buy one or you can recycle an old container. Personally, I reuse Pringles canisters. Second, save 1 peso every single day for at least 3 months.
And that’s it!
I guarantee that after doing this, you’ll be able to continue saving money without difficulties. That’s right, if you do this strategy, saving money won’t be a problem for you anymore.
Sounds easy, right? Yes, it is! But does it seem like a stupid idea? Some people will say so, but I don’t think it is.
A friend, when I told him about this strategy, actually laughed and said it was silly and weird.
He claims that he’ll just put 30 pesos in it so he’ll be done for the whole month. Moreover, he asks me what good is P90 after 3 months? You can’t even open a bank savings account with that amount!
That is true, 90 pesos isn’t life-changing… but is it?
Changing your life with mini-habits
In 2013, Stephen Guise published the book, Mini Habits: Smaller Habits, Bigger Results, which eventually went on to become a highly-acclaimed, best-selling book. The principles taught in this book are what you’ll be applying with the strategy I just shared.
So why does it work?
First, one peso is such a ridiculously small amount that it’s almost impossible to fail at doing it. Even if your budget is really tight, putting P1 into your piggy bank won’t be a problem.
According to Stephen Guise, the easier it is to do something, then the easier it is to sustain. You don’t even need willpower or motivation to accomplish it. Doing a mini-habit is quick, simple, and painless.
Second, a study published in the European Journal of Social Psychology by health psychology researcher, Phillippa Lally figured out that on average, it takes about 66 days before a new behavior becomes automatic.
Thus, saving every day for 3 months is more than enough for you to make it into a habit. Yes, you will learn the habit of saving if you do this strategy.
Isn’t that great?
Building on your mini-habit
It’s important to know that every great accomplishment rests on the foundation of what came before it; when you trace it back, you’ll see one small step that started it all.
A mini habit is basically a much smaller version of a new habit you want to form. And in this case, it’s saving money.
Just remember to never, ever cheat. Do it every day and remind yourself how easy it is. More importantly, don’t hesitate to save more than P1 if you feel like it.
Setting aside P1 every day is a VERY small positive behavior, but it allows you to build momentum towards a meaningful goal.
There will be days that you would probably save P20 instead of just P1 – go ahead and do that. It will feel great to put a higher amount, but without the pressure to do it every day.
And then, later on, you can use the money in your piggy bank to start building your emergency fund. When it becomes full, I’m sure there will be enough money in there to open an account.
Rinse and repeat until you’ve saved about six months’ worth of your expenses in the bank. And when you reach this point, the habit of saving would already be hard-wired into your brain. It’s already automatic and effortless.
Congratulations, you’re now one step closer to achieving financial freedom.