Tricks to Saving More

- Hi, I'm Jean Chatzky, and this is your Savvy Money Minute.

- [Narrator] Brought to you by Credit Union of Southern California.

- When it comes to money, human beings are, well, human. Our hunter-gatherer brains don't like delaying gratification, and that makes saving money a real challenge. The solution? Mind games. Tricking your brain into doing the right thing for your longterm financial wellbeing. That brings us to two psych-out money rules. Money rule number 11, if you can't see it, then you can't touch it, you won't spend it. And, money rule number 48. If you're just looking, don't touch. 401k plans work, because money is pulled from your paycheck before it even lands in your checking account; you can't touch it. And, hefty penalties deter you from touching that money before the appropriate time. That's why taking the time to set up a plan saves you from yourself. Second, our brains are hard-wired to hate loss. When you take physical possession of something you're considering buying, trying on clothes, or test driving a car, your brain thinks you already own it. So the idea of not buying it feels like a loss, and suddenly it's harder to resist making the purchase. Sometimes, the trick to saving money is outsmarting your brain. I'm Jean Chatzky, for Savvy Money.

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