This new concept is derived from psychologists studying the impulsiveness of bad financial decisions and poor saving habits, and by counteracting them we can use the future to improve our saving ability. Psychologists found within their study that focusing our efforts more on the future is what can create better saving habits.
The survey was conducted on 700 American adults and their financial behaviour e.g. impulsiveness, materialism and financial literacy. These questions were then tied in with their thoughts on saving for the future to produce the conclusion to their thesis.
As initially expected, there was a clear correlation between high levels of impulsiveness and materialism, which resulted in poor financial decisions or increased spending and reduced saving. Another correlation was found between healthy saving habits and individuals that focused on their futures more than immediate gains. One of our own reviewed the results; Adele Martin a certified Australian financial planner agreed that the results were not too dissimilar to her expectations.
Her experience with current society is that there is a heavier focus on instant gratification rather than long term saving for the future. This is her explanation as to why Australia’s national credit card debt stands at $32 billion, with annual interest bills over $5 billion per annum.
The answer is goal based planning and saving rather than simply saying you will save without any target in place. Buckscoop write a number of articles based on saving money, so to search different saving techniques try searching here. However there are some basics for using future orientated savings that you can use right away such as writing out your savings goals to help motivate you. Written goals are crucial for planning because it materialises your targets, rather than it simply being an idea. The more specific those goals are, the more likely they will be realised, e.g. “in December 2018 I want to buy my first apartment in Brisbane centre”.
The ability to visualise your goal has been recommended by money saving specialists around the world, e.g. putting up pictures around your house or as a background on your phone so you can keep your goals at the front of your mind every day. It’s this constant reminder of your goals that has helped people all over the world restrain from impulse buying. If something gives you a reason to reconsider your retail impulses then you are one step closer to looking into the future to save money.
If you would like to know which articles have been popular for money saving advice on the Buckscoop blog, here is a small list below: