Saving Money Isn't About Self Control - Financial Panther (2024)

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I was recently talking to a buddy of mine about personal finance when we ended up on the topic of saving money. He knew he needed to save more money, but was having trouble actually doing it. To him, saving money came down to self-control. As he explained it, he was struggling to save more because he couldn’t resist the urge to spend. If he could just avoid buying the latest gadgets or going out to eat so often, he’d definitely be able to put more money away – or so he told himself. In short, saving money came down to willpower. If he wanted to save more, he needed to will himself to do it.

I’ve always seen it a little differently. I’m admittedly a terrible budgeter. I don’t give every dollar a job. And while I track my account balances regularly using both Mint and Personal Capital, I rarely, if ever, actually sit down and review my spending. I’m also horrible at self-control. I go out to eat all the time. And if I see something that I want that isn’t too expensive, I’ll just buy it without much thought.

Despite what appears to be a total lack of budgeting, my savings continues to grow by leaps and bounds. In 2016, I savedover $33,000, which is more astounding when you consider that I took a $50,000 pay cut in the middle of the year. In 2017, even with my pay cut, I still managed to save over $31,000.

My ability to save doesn’t have to do with willpower or self-control. Instead, it’s all about the systems I have in place to make my pool of money look as small as possible. You don’t need to exercise self-control because a computer can do all of the saving for you.

Think Of Money In Terms Of Portion Sizes

I’ve always thought that saving money is a lot like eating food. When it comes to food, most of us will pretty much eat whatever is put in front of us. Give your average person a huge plate of food and they’ll probably need to eat all of it before they feel full. Put a smaller plate in front of that same person and they’ll probably start feeling full once they’ve finished that smaller plate. It’s a weird psychological thing that our brains can’t seem to avoid.

Money works in pretty much the same way – we just sort of make do with whatever is put in front of us. If you give me $2,000 per month to spend, I’ll probably figure out a way to spend about that much every month. Cut that down in half and Ican probably figure out a way to work with that too. Your brain will just sort of trick you into working with what you have.

If you think this isn’t true, just go back in time and look at what you did when you were a student. You probably didn’t have all that much money back then. Things that are necessities now – the big house, the luxury apartment, the car, the nice clothes, the better food – just didn’t seem all that necessary back then. Your portion size was just smaller, out of necessity obviously, rather than choice.

You can save more if you can just control this portion size. It has nothing to do with self-control. You just need to make your portions smaller.

Automate Your Savings

The secret to saving is setting up an automated system to get that money out of your hands as fast as possible. We all start with what I think is a pretty big plate – our paychecks. If you let that money sit in front of you, you’re going to find ways to spend it.

The great thing is that with technology the way it is, it’s easy to get that money out of our hands quickly. Below is an example of how your savings can be automated. You’ve got money coming out of your paycheck in the form of 401k deductions and things like that. Those are great ways to keep that plate smaller since you never even get a chance to spend that money.

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Money that actually arrives in your checking account should also be moving towards other places to keep your money plate small. I have set amounts that I take out of each paycheck for Roth IRA contributions and long and short-term savings goals. This gets the money out of my hands so that I’m not tempted to use it. I then use microsavings apps like Dobot or Albert to squeeze out just a little more savings from my checking account.

Feel free to read my reviews on Dobot or Albert if you’re looking for more information on how these apps work:

  • Dobot App Review – A Legit Free Alternative To Digit
  • Albert App Review: Smart, Automatic Savings (And Another Free Alternative To Digit)

By setting up an automated system like this, you’ll naturally reduce the amount of money that you actually have in your hands. Your plate is getting smaller. No self-control is involved. Instead, you’re just tricking your brain to get used to living on the smaller amount.

Make Your Savings Hard To Get

Saving money doesn’t mean anything if you’re just going to dip into your savings whenever you want to buy something. That’s why you need to make sure that any money you save is in a place where you can’t reach it all that easily.

Employer-sponsored retirement plans are a great example of how you can make your money hard to get. You set a percentage to save – preferably as high as you can – and you never see that money in your paycheck. Sinceit’s not all that easy to pull money out of your retirement accounts, you’re much less likely to touch it.

This is another reason why I recommend saving your emergency fund in a 5% interest savings account with Netspend. Not only are you snagging 5% interest, you basically add another layer between you and your savings. That small layer makes it much less likely that you’ll dip into your emergency fund for things that you don’t really need.

Tools To Help You Automate Your Savings

There are a ton of tools to help you automate your savings and keep your money plate smaller. If you’re trying to save more money, you need to be using tools like these:

    • Employer-Sponsored Retirement Plans:Almost every full-time employee will have access to a 401k or something similar. Take advantage of these accounts, preferably maxing out every plan you have access to if you can (assuming you have at least some decent investment options). It’s an easy way to save without having to exercise any self-control.
  • Capital One 360:Everyone should have cash savings for short-term and longer-term goals. The best way to save for these types of goals is to automate your savings towards these goals. The key, though, is to keep that money separate from your primary stash. I have a bunch of different sub-accounts that I’ve opened up through Capital One 360. Each month, Capital One 360 withdraws a set amount from my primary bank account and into each of these accounts. I get to save without even noticing it. If you’ve never used Capital One 360, I highly recommend it.
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  • Dobot: Even after you’ve done all of your saving, there’s value in trying to squeeze out a little bit more savings by using microsavings apps. I use Dobot to do that for me. It monitors my checking account, figures out if I have a surplus, and saves small sums for me that it feels I won’t notice. It’s like making your plate smaller by having someone else pull food off your plate that you probably don’t need to eat. If you find that you can’t handle the extra savings, just turn off the app. My guess is most of you will start getting used to seeing extra money getting saved every few days. And once you’re used to it, it’s not a big deal. Check out my Dobot review for more info.

You Don’t Need To Force Yourself To Save

Saving money might involve some self-control, I won’t deny that. With things like credit cards, it’s not all that hard to spend more than you have. But when you make your pile of money look much smaller, you’ll naturally start spending less simply because you’ll feel like you have less money to spend.

You don’t need to force yourself to save. Just set up your savings once, put it as high as you can, and get used to living on the amount you see leftover. No self-control needed.

More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

  • Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
  • Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
  • Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
  • Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
  • Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
  • KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
  • Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
  • Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
  • Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
  • Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
  • Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
  • Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
  • Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
  • Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

  • M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
  • Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
  • Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
  • Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
  • Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
  • SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

  • SoFi Money ($325) – SoFi Money is a free checking account from SoFi. They’re currently offering a $25 referral bonus if you open a SoFi account with a referral link and deposit $10. You can also make an additional $300 as well if you complete a direct deposit. This is a good bank that is also 100% free, so you won’t have to worry about managing this account. Here’s a post I wrote with instructions on how to earn your SoFi Money bonus: SoFi Money Referral Bonus: Step By Step Guide.
  • Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
  • Upgrade ($150) – Upgrade is a free checking account that’s currently offering a $150 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $150 Referral Bonus – Step By Step Directions.
  • Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
  • US Bank Business ($800) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
  • Fifth Third Bank ($325) – This offer is limited to customers in the following states:Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia, and South Carolina. If you don’t live in one of those states, you won’t be able to open an account onlinebut you can still open an account in-branch if you happen to be visiting a city that has a branch. This is a fairly easy bank bonus to earn, especially since there are plenty of data points showing what will trigger the direct deposit requirement. In addition, you can open the Fifth Third Momentum Checking bank account, which comes with no monthly fees or minimum balance requirements.Read my guide on this bonus here.
  • GO2Bank ($75) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $75 referral bonus.
  • Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
  • Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
  • Varo ($30) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $30 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

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Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

  • SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
  • 5% Savings Accounts. I'm currently getting 5.32% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
  • US Bank Business. US Bank is currently offering new business customers a $800 signup bonus after opening a new account and meeting certain requirements.
  • M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $250 for opening an account.
  • Personal Capital. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.

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