Looking To Increase Your Savings? Your Emotions Could Help You Save More
As a business owner, I know that goal-setting helps us achieve real progress and create a shared vision for everyone in our business. I never thought of its influence as emotional, but here’s an interesting article on using our emotions to further our goals:
According to a study from Brad Klontz, psychologist, certified financial planner and associate professor at Creighton University, tapping into your emotional connection with nostalgic items could inspire you to save more.
The theory behind this strategy is that making a connection with a sentimental item/memory can provide you with a visualization of your goal. Additionally, giving your savings goal a specific name also helps provide incentive for reaching it. For instance, the study demonstrated that people who saved money for the “retirement home on the beach” ended up saving more than those who simply saved for “retirement.” And the increases were significant: as much as 40%-115% increase in savings!
Author Anne Kates Smith of Kiplinger Personal Finance suggests, based on this study, that we all try to find something meaningful that we can associate with a specific savings goal in order to spur our motivation and savings.
To read more details about the study and the savings results, please visit https://www.kiplinger.com/