Nischa Shah, a former investment banker and YouTuber with over one million YouTube subscribers, is known for giving practical, easy-to-understand personal finance advice. She also covers money mindset topics, self-improvement and business advice.
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Part of what makes Nischa so popular is that even though she’s a qualified accountant and investment banker, her personal finance advice is easy to understand — there’s no over-the-top industry jargon or complex investing language. Rather, she has a willingness to reach as many people as possible people and teach them easy personal finance tips anyone can follow.
She released a YouTube video in 2023 in which she shares some money mindset tips that can help you save every day. Money mindset is just as important as budgeting and investing skills, so implementing these ideas can go a long way in helping you become financially successful. Here they are.
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When Your Pay Increases, Ignore It
Nischa described something called Parkinson’s Law, which means that you expand work to fill the time available. So, if you have three weeks to finish a project, you’ll take three weeks to finish it. But, if you have three days to finish a project, chances are, you’ll complete it in three days if you have to.
Nischa explained this same phenomenon happens with money, too. When people get raises, they typically increase their spending or think of all the things they can buy with their newfound pay raise.
Before you know it, they’ve spent that extra money, whether it’s buying a new car or taking an extra trip. But Nischa said in order to outsmart Parkinson’s Law, ignore the fact that you got a pay raise. Instead of upgrading your lifestyle, save the extra money you’re making in a savings account or invest it for your future.
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Think of Spending in Terms of Hours Worked
Nischa explained that your time is incredibly valuable. Time is something that you can’t get back. So, she suggests that, instead of thinking about how much something costs, think about how many hours you have to work to buy it.
If you get paid $15 an hour and a shirt cost $30, you have to work two hours in order to buy that shirt. Knowing this can help you decide whether or not that purchase is worth your valuable time.
Add an Emotional Response to Delayed Gratification
Nischa’s next point is that everyone has emotional attachments to the items you want to buy. She recommends flipping this and getting emotionally attached to the reasons you want to save.
Nischa said she used to spend her bonuses and her money on items like designer bags. However, switching her mindset to getting emotionally attached to saving and wanting freedom made all the difference. This is another great tip to adjust your mindset to focus on increasing your savings.
Wait for a Week
Many financial experts recommend waiting 24 hours before making a purchase. Nischa pushes that to a full week, explaining that waiting seven days can help you decide whether or not you really want to purchase an item.
She pointed out that there are numerous marketers and companies trying to make you part with your hard-earned money. In fact, they make it easy for you to spend with one-click buying and instant payment methods.
However, delaying decisions gives you time to consider whether or not you really want to make the purchase. If you still want to buy the item after seven days, you know you truly want it and that it will add joy or value to your life. Either way, by waiting, you can ensure you’re not engaging in mindless consumption and that you purchase the things you actually really want.
Listen to the Narrative You’re Telling Yourself
Nischa’s final piece of money mindset advice is to listen to the narrative you’re feeding yourself. She explained that the rise of social media makes it very easy to compare yourself to everybody else.
There are so many people on social media who show the best versions of their lives. But this just leads you to develop a fear of missing out. Instead, she recommends taking control over what you’re feeding your mind and what you’re choosing to read. Unfollow people who make you feel like you want to spend money or who make you feel less than.
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This article originally appeared on GOBankingRates.com: Money Expert Nischa: 5 ‘Mind Hacks’ To Save More Money
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