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

Struggling to save money? Ed McKnight has a few tips that are backed by science that should help with your finances.&nbsp;
&nbsp;
Mental accounting
Having rules of thumb (like 50% of spending to needs, 30% to wants and 20% to savings) actually works.&nbsp;
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).&nbsp;
&nbsp;
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".&nbsp;
&nbsp;
The Save More Tomorrow approach &nbsp;&nbsp;
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. &nbsp;
During this study people went from saving 3.5% of their pay to 13.6%.&nbsp;
&nbsp;
LISTEN ABOVE

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Jack Tame’s crisp perspective, style and enthusiasm makes for refreshing and entertaining Saturday morning radio on Newstalk ZB. News, sport, books, music, gardens and celebrities – what better way to spend your Saturdays?

Jack Tame’s crisp perspective, style and enthusiasm makes for refreshing and entertaining Saturday morning radio on Newstalk ZB.News, sport, books, music, gardens and celebrities – what better way to spend your Saturdays?

Saturday Morning with Jack Tame

Ed McKnight: Science-backed saving tips

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/2b5f259f-6c3e-49fd-8643-b27d01801f42/transcript