Nudge Theory that saves money…can’t keep it away

Want to save money but why can’t you?

Maybe just a simple way of saving money isn’t enough for you to be disciplined and disciplined to successfully save money. Let’s use a theory called the Nudge Theory.

Richard H. Thaler of the University of Chicago, USA, won the 2017 Nobel Prize in Economics for his idea of ​​Nudge Theory, or “Push Theory.” But how does this theory save money?

Nudge Theory is an alternative design, not a compulsion. to do what we want People generally rarely think about long-term goals. Think of only short-term goals. Collecting money is like coercion. Therefore, many people feel too stressed and therefore do not achieve their goals. But this theory will help create flexibility in collecting money. In order to collect successfully, there are 4 steps together:

1. Reward yourself – Doing good must be rewarded

It’s an inspiring way to save money: reward yourself. by which you set the reward If you reach your goal of collecting money, you will reward yourself with that reward. Don’t have to be very big, for example, save 2,000 baht per month. If you can collect for 1 year, you will reward yourself by buying 1 item you want in a budget of not more than 4,000 baht, etc. Just this you will have more encouragement. more to collect

2. Change your daily lifestyle – to reach your goals

When you set a goal to save 2,000 baht per month and at the end of the year. When the deadline is reached, you will be rewarded yourself. At the same time, your daily behavior It also needs to be adjusted in order to meet the goals set. For example, from meeting friends once a month, parties may have to change to once every two months. or switch from party to do other activities Together that doesn’t have to cost or cost less instead.

3. Split the money into parts – make a separate list of accounts

This will collect money to achieve that goal It also requires good planning and management. by clearly separating the money into proportions You may separate them into individual accounts at all. to make it easier to remember, such as an account for savings Account for monthly expenses account for investment will not mix and does not accidentally take the money to spend until it’s fun

4. Check the balance regularly – so you don’t accidentally use it all

How to check the balance will make us bruised Because of our monthly expenses, it will gradually shrink near the end of the month. but it is something we should make a habit so as not to accidentally spend money to buy extravagant things or unnecessary by the part that is the money should be kept separately in the savings account at the beginning of the month You may also use an automatic debit method. In order not to forget to bring this amount of money into your account

Nudge Theory is a theory that boosts your collection. But most importantly, you need discipline and determination. Still, it’s an important factor that you should have to be able to achieve goals.