Money manage TRICK
MONEY MANAGE TRICK… with special dedications to employers and employees from the #CONSTRUCTION INDUSTRY
As behavioural economists suggest “weekly salary” is a better option for our budgeting routines.
Scientists from Duke University ran a study in which people, who received additional benefits, were divided into 2 groups. With one group, their income was showed them on a “monthly” basis. For the other group – on a “weekly” basis. It was found: the people who saw their income on a weekly basis budgeted better than the ones who saw their income on a monthly basis. While the amount of money was exactly the same, the environment: the timing was changed.
From social science, we know that receiving lump sums can create a “windfall” mindset, which leads to a false sense of security and hinders our ability to budget. Many of us feel more flush on the days we get paid — and thus end up spending more — compared to the last day of our pay cycle.
You can harness the effect of this study by thinking about your salary in weekly amounts. It could be a great solution for employers from the construction industry, who struggle with never-ending requests of short-term loan from your employed builders. Weekly basis can help employees manage their money. Hassle free!