steady

Stress and nerves · Money

Automate the boring part

Set one bill, or one small transfer to savings, to go out automatically the day your pay lands. Then stop deciding about it.

10 minEvidence: worth trying

Defaults beat willpower. When a large US employer signed new staff up for the retirement savings plan automatically, with the option to leave, the share of people saving rose sharply. Evidence: solid In a related scheme, people agreed in advance to put part of their future pay rises into savings, and they saved more. Evidence: decent

Both were studied in US workplaces, with the employer setting it up. A standing order you set yourself is the same idea, not the same test. Evidence: worth trying

My reason for putting it on this page isn't the savings. It's one less thing to decide when your head is already full. Evidence: worth trying

Keep the amount small enough that it always clears. The point is that you never think about it.

Source: Madrian and Shea, 2001, Quarterly Journal of Economics; Thaler and Benartzi, 2004, Journal of Political Economy (link)

Same theme: Money

Arrows to move, Enter to open, Esc to close.