Take a look at the future
As basic as it sounds, imagining what you would like your life to be like in 20 years can be an important part of financial planning. While no-one can determine all the twists and turns of the decades ahead, one of the first parts of budgeting and setting financial goals is to look forward to set priorities for the future.
Be specific when you are thinking ahead
When it comes to saving for retirement, research suggests imagining life after work can help boost savings. The Bucks blog reported on a research paper earlier this year that was submitted in response to a US Treasury Department request for ideas to improve workers’ retirement prospects. It described an experiment in which participants were either shown an image of what they were likely to look like in the future or a current image of themselves. Those shown the “older” version put twice as much money into a test retirement account than participants who were presented simply with their mirror image.