Have you tried everything possible to save money, and yet failed in doing so?
You aren’t alone.
In 1945, a popular theory emerged that to-date explains why we all have trouble saving money. It is called Parkinson’s law. The law states that:
“ Work expands so as to fill the time available for its completion.”
In simpler words, any task given will be finished only within the time you set aside for it. For instance, if you give yourself five hours to clean your room, you will somehow use up the five hours to finish cleaning. But if you gave yourself two hours, you will find that you can finish it within two. And the end result will be quite the same usually! Adding a shorter deadline adds pressure and forces us to execute only the essential.
Do you remember the time when we could manage to study for an exam in just a day or two and end up with good results? It’s because we unconsciously prioritized on executing the essential. When we give ourselves limited time, we only focus on doing the important things.
But how does this apply to finances?
A derivative of Parkinson’s Law soon came into existence, and once you understand this, there is no going back. It states that:
“Expenses (work) will expand to fill (consume) the money (time) available for its completion”
It’s actually a very simple concept, that will lead you to finally save some money!
The more money you have, your lifestyle tends to grow in order to eat up that money. Think about it. When you did not have a job, you had very little money on your hands. But you could survive a month, and usually manage to fulfill almost all your needs back then as well. You were more careful with your money, to be precise. Once you landed a job, you began to earn a lot more, but suddenly you found yourself struggling to make ends meet!
The reason is, you unintentionally tend to have more needs just because you know you have more money at your disposal. We start being careless. Suddenly a paani puri isn’t enough for an evening snack, we might want a full-fledged restaurant experience instead!
What do we conclude from this?
Give yourself a small budget and get yourself to work around it. You’ll be surprised by your limits and how far you can actually push yourself. Doing this will also add discipline to your life.
Sit down and note down what the newfound expenses that don’t necessarily add value to your life, or give you any happiness in particular, and put an end to them. Even if you can afford it. Remember that you could afford something else with that money, that will actually give you happiness later!
Once you break the law, you will notice that you suddenly have money left at the end of the month, which can be saved or invested. You will also find yourself distressed by finishing tasks ahead of time, giving yourself more time to pursue what you love.
Remember: Embrace Constraints & Work yourself around the clock.
Don’t believe me? Try it yourself!