Let's try saving $500 a month in the U.S....

It sounds easy in theory, but I kept failing when I actually tried.

The reason is that I was trying to save what was left over after spending.

Since there are hardly any leftover months, it's no surprise that I failed. So I had to change my approach.

Instead of "saving leftover money," I shifted to "setting aside money first and spending what's left."

The first step is to automatically set aside money as soon as my paycheck arrives. I set it up so that $500 is deducted right on payday.

For example, I set up an automatic transfer at banks like Bank of America or Chase Bank to send it to a separate savings account.

The key point here is to make it "invisible." If it stays in the checking account, I will eventually spend it.

On the other hand, if I transfer it to a completely different account, I psychologically treat it as money that doesn't exist. People tend not to spend money they can't see; they don't spend money that exists only in their memory.

The second method involves adjusting fixed expenses. To save $500, I need to change the "structure" rather than just reduce spending.

For instance, when I look at the subscription services I pay for each month, there are more than I realize. Netflix, Spotify, gym memberships, various apps. Combined, these can easily add up to $100-$200. If I also check my phone bill, insurance, and internet, even more can be found.

Once I organize these, I automatically save money each month. That's the point. Relying on willpower to save doesn't last long.

Instead, creating a system that prevents spending is sustainable.

The third method is a 'fake poverty strategy' where I intentionally limit my living expenses. It sounds harsh, but it is effective.

I set a strict budget for living expenses for the month and only spend within that limit. For example, at the beginning of the month, I put only my living expenses on a debit card or a separate account.

I don't touch the rest. If I run short, I just endure the shortage. After a few months of this, my spending patterns automatically decrease.

People adapt to their environment. If they have money, they spend it; if they don't, they don't spend.

The important thing here is not a "big resolution" but a "small system."

Most people crumble under the pressure of willpower. On stressful days, tiring days, or days when they're not feeling well... that's when they swipe their cards.

However, if a system is in place, it remains unaffected by those variables.

Money has already been deducted, and the amount available to spend is already limited.

People who can't save aren't necessarily broke; they live in a structure where money is always within reach.

Conversely, those who save don't necessarily cut back more; they simply make it so they can't spend it in the first place.

In the end, it's not about "saving $500" but about "making it so you can't spend $500."

This seems to be the most effective way to save money in the U.S.