Want to save? Best to keep things simple: report
If one savings goal is a good thing, two or more should be great, right?
Probably not. Those who want to save are more apt to keep socking money away and more of it too, if they have just one goal in mind, according to research from the University of Toronto.
"If you have only one goal it puts you in a more action-oriented mindset and helps you save more," says Min Zhao, says one of the study's authors. "Too much thinking about which goal is more important keeps people from acting."
The study looked at a range of different research subjects, including modest households in rural India, middle-income Canadians, and working professionals living abroad.
Results consistently showed that a single savings goal worked better than multiple goals. Having multiple goals resulted in people thinking about trade-offs between goals, rather than focusing on implementing their savings plan.
The findings suggest that financial instututions may want to reconsider their messaging. Banks sometimes advertise a list of reasons to save, but such a message could backfire, the study suggests, because that introduces multiple goals, leading to confusion.
Truth is, most people have more than one thing (homes, education, retirement) on their mind when setting priorities. In that case, the researchers suggest finding a way to integrate seemingly competing goals into a single more abstract goal, such as achieving financial independence.
By Gordon Powers, MSN Money
Posted by: Really !!! | Jan 10, 2022 6:29:13 PM
Hopefully the federal or provincial governments didn't subsidize this "study" to the tune of 20 Million. What a complete waste of space. "Modest households in rural India"... indeed. The study just stole one of my dreams.
Posted by: Keith | Jan 13, 2022 2:53:50 AM
Homes,education,retirement... :S . More like, where am I going to live next month?, is there any decent paying jobs that pay above the poverty line here in Canada?, and will cpp even exist in the future? How can anyone save anything with these slave wages, GET REAL!
Posted by: Vieve | Jan 13, 2022 7:51:20 AM
The best way to save your money is don't spend it. Why part with your money for stuff ? Everyone wants your money Doing something simple like not buying a coffee each day or the lunch at work makes a difference. The money soon accumulates . If you are in a poorly paid job start preparing yourself for something better -- the library is free .
Posted by: Judy | Jan 13, 2022 9:45:50 AM
This title was a bit misleading. You can certainly save by simplifying, meaning get rid of your landline, make your own coffee, downgrade your cable package, pack your own lunch, etc.
Posted by: idiot494 | Jan 13, 2022 4:59:35 PM
ya i have a saving goal.. its to go to have more money than i did yesterday... everyday.
Posted by: Can't Believe It | Jan 13, 2022 7:53:56 PM
How in heavens name are you supposed to balance any kind of budget when everything is continually going up? I'm not a big spender, but with gas, bills, food, there is nothing left to save. I'm sick of people telling me to cut down, I don't do anything over-the-top, it's the government etc. that won't let me save anything. Quit raising bank fees etc. etc. etc.
Posted by: John | Jan 17, 2022 8:30:22 AM
The best way to save money is don't spend it. As Vieve said. There are tools on the internet that help you to keep spending under control. Personally I use moneylyzer.com. Is easy and powerful.
Believe me. When you track your spending, allways find surprises.