Proof in the pudding (or, cashews)
There’s actually science behind the idea of hiding your money to help you save. Let’s take a look.
In the 1970s, economist Richard Thaler invited a bunch of mates over for dinner. During pre-dinner drinks, he noticed that they were all tucking into a bowl of cashews. Simply because the nuts were there. Thaler took the bowl away and, surprise, surprise, they stopped eating them.
His lightbulb moment from this accidental experiment was that humans lack self-control. Even though we know the cashews will ruin our appetite, we still grab a handful. Hey, no-one’s perfect, right?
Many people lack self-control when it comes to saving money, too. You know you shouldn’t dip into your savings, but you’re a sucker for sneakers, a softie for smartphones, a goner for gems or a freak for fashion. All is not lost!
Using Thaler’s idea, one of the easiest ways to regain control over your savings is to remove the money from sight. Out of sight, out of mind.