Always do your shopping in a full face of make-up! Adapted by ALISON ROBERTS

And other surprising ways to save cash

hroughout my childhood, money was a source of great tension at home. Neither of my parents — a social worker and an artist — had much of an income, and they raised f four children in a state of continuouscontinu financial stress.

As an adult, I took the unhealthy atti attitude towards money that I’d learnt as a child and sabotaged my own financial lif life for years. I didn’t save, I didn’t invest, I got into debt; money was a closed sub subject, off- limits to someone like me.

then I did a degree in maths (having(ha taken out a loan) and suddenly realisedrea there was no logical reason why I shouldsh have so much trouble with money. I was intelligent and I worked hard. What was my problem?

During years of academic research as a behavioural economist, I dug deep into the psychological reasons for financialfinan self-sabotage, and recognised myse myself in many of the stories I found.

I cleared my debts, built up my savingssav — and then got divorced and had to start all over again as a single mum mum. . . .

Meanwhile, I wrote a book for all thoset women like the old me: women who are frightened by money and locked into bad financial habits.

there are lots of us out there, but often it only takes small changes in behaviour to make a big difference to financial security.

STOP COMFORT SPENDING

Why does retail therapy feel so good? the clue lies in the word ‘therapy’. We often shop to meet deeper needs: to combat boredom, boost low self-confidence or to feel better after rejection or disappointment.

But shopping to restore your sense of self-worth is a flawed strategy. the emotional high is temporary, but the money you spend is gone forever. If you’re feeling insecure, avoid temptation and steer clear of the shopping centre.

go for a run, paint your nails, dance, cook; whatever it takes to make you feel good about yourself. that doesn’t mean you can’t go shopping ever again. Just follow these rules when you do: Rule 1: Never go shopping in anything that makes you feel less than fabulous. Put on your best frock and make-up and remind yourself that your confidence is not for sale. Stores are designed to dazzle and impress. If I feel jaded, I know I’m more likely to fall prey to my own insecurities. Rule 2: Set a reasonable budget before you go out, and take it in cash. If that limit is £10, so be it. Rule 3: Do not buy anything you don’t like as much or more than your current favourite thing. Lots of things are nice. Many of them are great bargains. But that’s not a good enough reason to buy them. Rule 4: For every new item you buy, donate or discard an old one. If I add a new shirt to my wardrobe, my least favourite top goes on eBay. this reminds you that every new buy is a trade-off.

IGNORE YOUR NEXT-DOOR NEIGHBOUR’S NEW BMW

We don’t talk much about money, but we do communicate messages about our wealth, largely through conspicuous consumption.

When other people flash it around, it can seem as though everyone is doing better than you. Watching a neighbour hop into their big car, or install a pricey new kitchen, it’s impossible not to measure yourself financially against them.

Be brave. Ignore the Joneses and instead look at your own finances with a clinical eye. too many people are scared to look hard at their financial situation — but only by facing up to the reality can you begin to improve it. And remember: your neighbours probably aren’t as well off as you think.

TOP UP YOUR PENSION POT IN YOUR FIFTIES

IF there’S one thing you can do in your 50s to improve your finances, it’s work out what five per cent of your pension pot looks like. that will be your annual income in 15 years’ time, and if it doesn’t feel comfortable, you need to act now. trouble is, upping contributions in your 50s feels selfish. there are lots of demands on your money in this decade — you might be helping children through university or paying care-home fees — and it can seem like you don’t care if you put your own financial needs first.

But you must. It’s the wisest thing you can do. It’s much easier to feel the pinch in your 50s than your 70s.

IMAGINE YOURSELF TEN YEARS FROM NOW

the greatest barrier to good financial behaviour is our tendency to care more about today’s desires than the future.

We know we should save for a bigger house/holiday/our retirement, but going out to dinner is tempting. experts call this ‘psychological distance’ — a measure of how far away the future feels to most people.

But there are tricks to help you overcome it and they focus on forming a detailed mental picture of your future self.

research has shown that the more vivid and the more likeable you make this self, the longer you spend really imagining the fine detail — the less impulsive you’ll be with your money now.

Where will you be living? Who with? Will you be working, travel- ling, grandparenting? Imagine a whole day from waking to sleeping. one study even created computersimulated avatars of people’s future selves and found that those who interacted with them made wiser financial choices as a result.

try some of the free phone apps that age-progress your face. the clearer your mental image, the more you reduce psychological distance, and the more you’ll save.

DITCH THE DAILY LATTE

We ALL know that budgeting by cutting out the ‘frills’ can save us a fortune. But making and keeping to a budget is harder than it looks, and often feels like an exercise in taking the fun out of life.

the key is to distinguish between needs and strategies to meet those needs. If you’ve ever tried and failed to cut the expense of your daily stop at the coffee shop, it’s probably because your need was not for latte in the first place. After all, you can satisfy your caffeine cravings at home for a fraction of the price.

It could be that what you really need is human connection after hours at a computer; or fresh air, or to break up the monotony of the day.

So pick a different way to satisfy it — if it’s about social connection, invite a friend for home-brewed coffee. If it’s the sights and sounds of the city you enjoy, pop out of the office for a walk. If it’s the smells and comfort of the café itself, try ordering the smallest and least expensive item on the menu.

this is a key that unlocks all sorts of expenses: we think we need to eat out, go to the gym and drive to work. those needs could be met with a picnic, a jog in the woods, and the bus.

UNDERSTAND YOUR OWN MONEY STORY

WAS your father a ‘mean-spirited’ penny-pincher and your mother a ‘generous’ spender? Did your grandmother tut and tell you that ‘money burns a hole in your pocket’?

We are steeped in messages about money as a child, and we inherit attitudes towards it just as we inherit our eye colour. But often those attitudes are emotional and hold us back from looking objectively at our behaviour. If we think we’re ‘bad with money’, then we’re likely to live up to expectation.

Write your money story down in as much detail as you can. What emotions do you most associate with money? Who have been the most influential people in your life from a financial point of view?

re-read it and work out your core beliefs about money. then ask yourself: Where would I be if I didn’t believe this?

Loaded: Money, Psychology, and How To Get ahead Without Leaving Your Values Behind by Sarah Newcomb (John Wiley & Sons, £18.99). To order a copy for £14.24 (25 per cent discount) call 0844 571 0640 or visit mailbookshop.co.uk. P&P is free on orders over £15. Valid until June 6, 2016.