The biggest reason you spend money is because you think you have it. If you were broke, you'd be hesitant to spend every penny. So, if you want to save money, get into the mindset of being broke. Photo by Dan Moyle.
As personal finance site Action Economics explains, when you have the ability to save money, it's often your will that becomes the real problem. Why hold yourself back from those expensive gadgets or that fancy meal? Yet, if you had absolutely no money in your account, you'd have a much easier time of it. Acting broke gives you a psychological shortcut to reducing your expenses:
When looking to buy a book, a movie, a theatre ticket ask "Do I have money?… Oh, wait a sec, I'm broke. Skip it." Acting as if you are broke to yourself is what will cause you to save some real money. When you are truly broke you have a necessity to challenge every expense, every line item, every dollar. Do this all the time and your cash will pile up.
Being broke is no picnic. For those of us who are or have been broke in real life, it's a disaster where you second guess every cent. Most of us don't want to voluntarily go back to that lifestyle if we can avoid it. However, if you can get yourself to a point where you don't spend money by default, you can get into a better financial situation in the future.