Behavioural science tells us that there’s no better time than a personal milestone like a new job or birthday or a certain time of year, like the new year, to make a fresh start. It’s a psychological way of wiping the slate clean of some potentially poor choices we’ve made in the past. It’s also a time we’re more likely to be thinking about the future as opposed to the pressing needs and inertia of the present.
How to use the fresh start effect for your savings and investing goals
No need to wait until the New Year to revisit your finances – any milestone will do! Individuals who are curious about saving and investing but haven’t found the time or energy to start may want to consider taking the first step on your next birthday, especially those round number ones that seem to be particularly salient for us.
Read more here about the fresh start effect in our report, Encouraging Retirement Planning through Behavioural Insights.