Running out of money too soon? How to trick your brain into saving more

It’s easy to start saving with enthusiasm, but sticking to it can be another story. A sudden expense, a tempting purchase, or the belief that there’s plenty of time to save later can derail your plans. Yet small choices today can make a big difference to your future security. Here’s a step-by-step look at how to keep your savings on track, even when motivation slips.

Why is saving for the future so hard?

One reason is a mental shortcut called hyperbolic discounting. This means we often value immediate rewards more than long-term benefits. For example, when you get a pay rise, you might be tempted to buy a new car with higher monthly payments rather than increase your retirement savings despite the fact that doing so could help you stop working years earlier.

How does financial stress affect saving?

Money worries can pull people in opposite directions. Some react to stress by cutting costs and saving more, while others spend more as a way of feeling in control. Unfortunately, decisions made in the moment, whether to spend or save, can have a huge impact over time because of the power of compound interest.

How can setting clear goals help?

Begin by writing down exactly what you’re saving for. If you’re unsure, you can use goal-setting tools to identify and define your aims.

Research shows that financial goals linked to security (such as retirement) or personal fulfilment (like starting a business or donating to charity) are often the most inspiring.

Can short-term and long-term goals work together?

Yes. Pairing smaller goals with bigger, more meaningful ones can boost motivation. For instance, you might link “saving for home repairs” with “donating to a charity” by deciding that any money left over after the repairs will be given to your chosen cause. When your goals are clear and personal, you can return to them whenever your motivation drops.

What if I feel like I can’t save right now?

When you’re under financial pressure, it’s easy to convince yourself that every bit of current spending is more urgent than saving. This is when a detailed budget review can help. Look at how much you earn each month, how much you spend, and exactly where the money goes. If there’s no surplus, examine your spending and decide where you could cut back.

How much should I be saving?

Give yourself a reality check by working out how much you need to put aside each month to reach your goal within your preferred timeframe. It can be eye-opening to see how saving more or less each month changes the age at which you could retire.

What if I can’t save much right now?

It’s perfectly fine if you can’t set aside as much as you’d like at the moment. Save what you can now and increase it when your circumstances improve. Even smaller contributions, kept up consistently, will still move you towards your goals.

How can I make saving easier?

Remove the need to make a fresh decision each month by automating your savings.

If you have to remember to transfer money manually, there’s a good chance you’ll forget or decide to skip a month.

Studies show that automated saving plans often help people save more over time. Setting it up now can keep your plan running smoothly for months or even years without extra effort.