Harness tech to save more
Our research suggests that using software to aggregate multiple savings accounts could improve your saving and spending behavior. With many accounts, your sense of how much you have saved is too vague. With one, your tendency to justify spending decreases, because you have a clearer sense of your financial situation.
-- Promothesh Chatterjee, assistant professor at the University of Kansas School of Business
Painlessly stick to a budget
Rather than track every little expense, set aside a certain amount of money. Then feel free to spend the rest however you see fit.
This requires two steps. First, add up the amount per month that you need to save to reach your goals, like a home purchase, new car, retirement, et cetera.
Second, set up a monthly automatic withdrawal from your checking account to a separate account, preferably an online savings account that pays a little higher interest. Then spend your money as you want.
-- Peter Lazaroff, CFA/CFP with Acropolis Investment Management
Connect with your future
My new research, like other work in this area, shows how important it is to think of your future self as real. I found that speakers of languages with grammars that blur the lines between present and future tenses, such as German and Mandarin, tend to exhibit more future-oriented behavior, like saving more for retirement.
But your language is not your destiny. It's just a force that nudges you. You can learn to create other nudges, like setting small, attainable goals that will slowly improve your habits.
-- Keith Chen, economics professor at the Yale School of Management
Best tool: Seeing yourself old makes you more inclined to save for retirement. The 99¢ smartphone app AgingBooth takes your picture and morphs you into a senior citizen.
Top experts and Money readers share their smartest tips for helping you build your nest egg and land a dream job.