Nudge theory is a behavioural science that uses subtle methods and psychology to help people move in the right direction. It proposes a positive reinforcement of behaviour or indirect suggestions to act in a certain way. Nudge theory can also be seen as a way to take the last step.
Nudge theory in financial services is less common than in other industries. Knowing you need to do something bu not acting is a common occurrence.
Here are some smart tips as a financial nudge to make you step over the line to a better saver.
- Saving on the day you get paid makes it seem more affordable putting something aside when there is a larger sum.
- With a pay rise direct some money into an investment plan. Its new money so put it away before you get used to it in your pay packet.
- Unexpected income should be put into savings, don’t just spend it. Earn a guaranteed 25%.
- Looking at a put spare change into a jar or in our digital world consider a debit card that rounds up and puts the money into a savings account.
- Putting money away from your salary into a workplace pension often gets matched by your employer.
Other financial nudge tips. Share them with us and we will add the best ones to our list.
How useful was this post?
Click on a star to rate it!
Average rating 5 / 5. Vote count: 1