If you get paid on friday, your bank account will be higher. And so instead of having a lower balance, you'll feel like you have more money to spend. What we suggest is people outline when the five fridays are and then commit to just moving all that money nto savings. You can basically overpay your mortgage or your car payment and save yourself thousands of dollars. People who oppedid into this ended up saving, on average, eight years off their loan payment.
#337: Meet Kristen Berman, a top researcher in the field of behavioral economics. She’s the co-founder of Irrational Labs, which designs products that are evidence-based in the behavioral sciences.
Her co-founder, Dan Ariely, is the James B. Duke Professor of psychology and behavioral economics at Duke University, and one of the most famous behavioral economists in the world.
Here are some of the (counterintuitive!) ideas that Kristen shares:
- Habits are overrated. Automate instead
- Budgeting doesn’t change your spending behavior
- Commit in advance
- Forget about the outcome
- Focus on the process
- You need accountability
- Think about the Three B’s: behavior, barriers and benefits
Tune into this episode to hear Kristen elaborate on these research-backed, evidence-based ideas about how to improve our spending, saving and investing habits.
For more information, visit the show notes at https://affordanything.com/episode337
*Note: This interview originally aired in October 2019.
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