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.
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