That means you're likely to continue spending and saving and investing the way you always have, even if an overhaul help you get closer to reaching your financial goals.
'Make it tougher' to spend money and easier to saveYou know you have to put some money away to use later.
This applies to short-term goals, such as building an emergency fund, and longer-term ones, such as retirement.
If I can automate my retirement saving, I'm not even having to make a decision about that money.
So people feel like they're actually spending their money, whereas if you're tapping using your phone, it doesn't feel like a real transaction," Chaffin says.
Persons:
Charles Chaffin, I'm, It's, you'd, Chaffin
Organizations:
Financial Psychology Institute, Iowa State University
Locations:
Chaffin