Stories | June 28, 2011

Have I saved as much as you?

An online tool allows users to compare their financial situation with others like them

How does your financial health compare to others like you?

How does your financial health compare to others like you? Personal finance website Smart Money reviews an online tool from ING Direct USA that uses crowd-sourced figures to help provide the answer. It writes that the tool - called CompareMe - provides "users an objective way to gauge their financial status, with the end goal of nudging them into action".

Is your tolerance to risk the same as mine?
CompareMe asks about a wide range of financial circumstances, including retirement savings, spending habits and investment style. Answers are compared to those already given by users of the same age, sex and marital status. At the end, it produces a summary report.

If you boost your savings, I'll boost mine too
The online tool taps into the notion of herd behaviour - or our tendency to follow the trend. As an eZonomics poll on "peer effects" and saving says, many people try to save more if they discover their friends are doing the same. But the flipside is also true. People with high spending friends might end up splashing out more often than they can afford. It might be a good idea to try to embrace friends' positive influences but put plans in place to avoid picking up on their negative ones.

eZonomics team
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