20 Mar Ted Talk: 3 Psychological Tricks to Help You Save Money by Wendy De La Rosa
Most of us want to save more money, but overall, people today are doing it less and less. Behavioural scientist Wendy De La Rosa studies how everyday people make decisions to improve their financial well-being. Her findings can help you painlessly make the commitment to save more and spend less.
It turns out, your saving behaviour is not a question of how smart you are or how much willpower you have. The amount we save depends on the environmental cues around us.
De La Rosa notes, ‘We ran a study in which, in one group, we showed people their income on a monthly basis. In another group, we showed people their income on a weekly basis. And what we found was that people who saw their income on a weekly basis were able to budget better throughout the month. Now, it’s important to know that we didn’t change how much money people were receiving, we just changed the environment in which they understood their income. And environmental cues like this have an impact.’
As such, we implore you, our readership to watch the video and evaluate which cues in your lives might help you save.