This article in Money Save money. That’s an order – Mar. 7, 2013 by Kim Clark is a short interview with Professor Meir Statman about how people need a bit more than a gentle push, or nudge, to do what is in their best interest … save more for their own retirement.
Rather than wait for someone to make you save more, like needing your mother to make you eat your vegetables, people should just do it. Of course, there are competing emotions about today versus tomorrow. Hindsight bias, for example, fools most people … hindsight fools you into thinking you can foretell the future as well as you can the past. Meir goes through many other examples of emotion … and they trick you! He talks about other emotional tricks you play on yourself too.
A great read … inspiration to take just a little step and notch up how much you put aside for tomorrow. When tomorrow gets here you will be glad you did!
As I’ve always told clients … spending your money is what makes everyone else wealthy; keeping it is what makes you wealthy. Wealth defined here is being able to sustain today’s working standard of living into, and through, retirement. Wealth is not measured by how much someone makes (and spends) – that is what makes everyone one they give their money to wealthy. Do you understand the difference?