APRIL 10, 2013 Wednesday
Research Finding , pesonal Finance .
You'll Save More if All Your Money Is in One Account !
Experiment :
People who earned money in an experiment were up to 8.6% less likely to save their cash (as opposed to spending it on such items as T-shirts and photo albums) if they stored it in three accounts rather than one .
Underlying reason ?
With funds spread across multiple accounts, people find it harder to see how much money they really own, and it's easier for them to invent "creative justifications" for fun purchases !
Source: Influence of motivated reasoning on saving and spending decisions
Research Courtesy : a team led by Himanshu Mishra of the University of Utah.
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