We all want to save more cash. Motivating ourselves to pad our bank accounts instead of blowing through nearly everything we earn would be ideal, but it feels like an impossible feat. According to a recent study however, there’s a ridiculously simple trick for us to all save more money. It’s all in the approach.
According to Duke University psychology professor and behavioral economist Dan Ariely, we can all become more motivated to save money by simply knowing EXACTLY what we’re saving it for. Seriously, that’s it!
In a recent Forbes interview, Ariely discussed results from a study proving that parents who open a savings account specifically for their children’s college tuition are more likely to have their kids actually enroll. It’s because they named their savings motivation. And it worked.
“[T]he name gives it a goal,” explains Ariely. “Imagine that you’re poor and you don’t have much income and I open for you an account that is called my future home and I open you another account and it’s called my future business and all of a sudden once a month you get a statements and you say, ‘I have an account – I’m working toward that.'”
In other words, if you explicitly choose your savings goal, your motivation to save money greatly increases, and you can just watch those stacks get fatter!
So pick your motivation and start feeling like Scrooge McDuck already!