Ed McKnight: Science-backed saving tips
from Saturday Morning with Jack Tame Hosted by Newstalk ZB
Struggling to save money? Ed McKnight has a few tips that are backed by science that should help with your finances. Mental accounting Having rules of thumb (like 50% of spending to needs, 30% to wants and 20% to savings) actually works. It also helps people save more, especially if you are using different bank accounts (e.g. a needs account. A wants account. A savings account). Big goals vs small goals People save 82% more if you say "I'll just focus on savings $100 a week." Rather than "I want to save $5k". The Save More Tomorrow approach This method takes half of an employee's pay increase and adds it to a savings account, repeating every time they get a pay rise. During this study people went from saving 3.5% of their pay to 13.6%. LISTEN ABOVE
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