It seems like many Americans are ready to take another approach after juggling debt, battling inflation and overspending. A trend called “revenge saving” is here, and hopefully staying. Basically, it’s where folks aggressively store away cash in order to regain control over their spending and saving.
So instead of splurging to cope with stress, the new flex is now cutting back on lifestyle creep and building an emergency fund.
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According to a recent Vanguard study, 71% of Americans surveyed planned to switch up their savings approach to focus on flexibility and emergency savings. Think of it as a defensive measure against this uncertain economy. Here’s how to get in on the action.
Also see eight practical tips to save money every month without sacrificing your lifestyle.
How You Can Practice Revenge Saving
The ultimate goal with revenge saving is to take back control of your finances. The specifics of what it looks like may vary from person to person.
However, there are many practical ways you can practice revenge saving.
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Audit Your Spending
Look at your bank and credit card statements from the last several months to see if there are any opportunities for savings. For example, you may have a few subscriptions you no longer use, or you might find that you can temporarily cut back on takeout to help reach your goals.
Use Real Numbers To Define Your ‘Why’
Maybe you want to save three months’ worth of living expenses because you’re uncertain about the job market. Or maybe you want to pay off your credit card debt by the end of the year.
Having concrete goals backed by real numbers will help give you personal meaning to revenge saving.
Automate Savings
Setting up your savings once will help you stick to your plan. It’s as simple as scheduling automatic transfers each payday to a dedicated savings account. Some banks even have what are called “buckets,” where you can set separate savings for goals like home maintenance or travel.
Take Advantage of Windfalls
You can also consider putting any bonuses, tax refunds or extra money toward your savings goals. Even smaller amounts, like ones you earn from garage sales, count too. This can help accelerate your savings.
Turn It Into a Game
Gamifying your finances can help give the temporary motivation (and fun) you need.
Consider ones like a 30-day no-spend challenge, or stop spending on an item you regularly buy for a week. Even a challenge like spending only cash for a week or two could help you be more aware of your spending habits.
Save Room for Fun
Don’t go overboard and cut out all the joyful spending in your life. Consider leaving room for some way you can spend on splurge items without guilt.
How To Stay Consistent
The goal is to help you reset your finances and create a better relationship with money, so being consistent is key. Instead of going all in and burning out, start out with picking one or two strategies, like cutting out takeout once a week and cooking your own meals instead. When that becomes an ingrained habit, you can see other ways you can continue revenge saving.
Having these small wins can help you find ways to balance saving for short- and long-term goals. That way, you can put money toward a weekend trip with friends, for example, and be able to save for a three-month emergency fund at the same time.
Whenever you start something new, it’s also important to give yourself some grace when there are slipups. You are human after all.
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This article originally appeared on GOBankingRates.com: ‘Revenge Saving’ Is the New Financial Flex — Here’s Why You Should Join In
