3 steps to save money when you’re tempted to spend

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This article was published 12/08/2025 (388 days ago), so information in it may no longer be current.

Why do so many of us struggle to save?

Saving for the future can be difficult because of a cognitive bias known as hyperbolic discounting: our tendency to place greater weight on immediate satisfaction, even if focusing on the long term will have a greater payoff. This bias is why, when you get a raise, you may consider getting a new car—incurring a higher monthly payment—instead of sacking away more money each month for retirement and perhaps getting to retire several years earlier.

Feeling stressed about finances can also get you off track with your savings. While some people respond to financial stress by saving more, others respond by spending more in order to regain feelings of control.

Unfortunately, these shortsighted decisions on spending versus saving can have large effects on our ability to achieve our future goals, because of the enormous power of compound interest. So, let’s talk about what you can do to keep saving when you feel the urge to give up.

1) Perform a goals audit

Sit down and list what you are saving for. If needed, you can use techniques geared toward helping people find and articulate their financial goals.

Then, consider how you might pair up your goals to boost your savings motivation. Research suggests the most motivating financial goals may be those relating to security (for example, retirement) or self-actualization (such as opening a business or contributing to charities). Consider how you may link some of your shorter-term goals to these bigger goals.

For instance, you may decide to couple your “savings for home repairs” with your desire to “donate to charity” by committing to donate the excess you saved for repairs to your favorite nonprofit. By ensuring your goals are well-articulated and meaningful, you can always come back to them for a dose of motivation when you feel yourself wavering.

2) Assess what you can (and should) save

When we are feeling stressed by finances, we may convince ourselves that all our current spending is more of a priority than our saving. So, start by doing a comprehensive review of your budget.

How much money comes in each month, how much goes out, and where does it go? If you don’t find a monthly surplus, that indicates you may need to go through your spending and decide where you can spend less.

I recommend giving yourself a reality check by calculating how much you need to save each month to achieve your goal in the time you want to. It’s especially eye-opening to calculate how saving more or less each month can affect your ability to retire.

Remember, it’s OK if you cannot save as much in this season of your life as you’d like. But by saving what you can and coming back to this practice when your circumstances change, you can still make serious progress toward your goals.

3) Take it out of your hands

Now, make your commitment as easy as possible by automating the process. If you have to decide every month to transfer money into your IRA or savings, the chances are that it won’t happen at some point. You’ll forget, put it off, or maybe decide that this is the month for a treat instead.

Research suggests that automating savings can help people save more than they otherwise would, so taking the time to automate your savings now can help you stick with your plan for months—or years—to come.

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This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance

Danielle Labotka, Ph.D., is a behavioral scientist at Morningstar.