Nudge economics – ‘A Nobel prize winner reveals psychology of saving money.’

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Nudge

A professor’s research reveals nudge economics is far more effective than setting rules when it comes to changing people’s financial behaviour.

From an article on the ‘My Business’ website:

‘Professor Richard Thaler’s studies are centred on ‘nudge economics’, wherein simple fixes or hacks, rather than rules or laws, are employed to nudge people in the direction of better habits, and away from instinctive reactions.

A nudge could include putting healthier foods where people can see them, which plays to people’s tendency to go for the easier choice.

But Professor Thaler believes that nudges can be also used to manage money.’

Source: My Business:Nobel prize winner reveals psychology of saving money

Always know what you’re spending and saving.

Most people are surprised when they look back at what they’re spending.

Once they have an understanding of what they’re spending, it puts their situation in perspective and they understand why how to take responsibility for their spending habits.

Spending

Rapid advances in technology can now cost-effectively help people managed their money without first consulting expensive advisers.

For advisers this is a good thing because it can only add value to any significant decisions being made by the client, such as buying a home or car or making an investment. It makes managing their money more cost effective and less stressful for themselves and their family budget.

Here at Health and Life we have adopted this approach and, with the help of My Prosperity, simplified it into a powerful and convenience mobile device-friendly tool.

Automatically your bank instantly updates your income and spending habits as well as how much you have borrowed and saved. You can keep your tax, will and insurance policy information on line in the event of an emergency. Your family home, cars and investments can be automatically valued at an instant. Future 20-year savings forecasts can be made. This gives you an unprecedented financial ‘bird’s eye’ view on how you are going, at a cost from $20 per month. Your children can be added to the program to help them become more financially literate and more careful with their money.

This provides enormous confidence when it comes to making those important financial decisions.

It’s like having a Wealth Fit Bit device at your finger tip.

phone

So, no matter how rich or poor you feel, there are no more excuses as to why you cannot stay on top of your finances. Plus, if you are seeking a speedy loan, the banks love it.

For more information, watch the video and/or email us at Health and Life pa@healthandlife.com.au for a demonstration or access.

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