The following was made possible by Prudential.
I’m sure you’ve realized that saving for retirement can be very difficult at times. Few people take the time to sit and try to figure out exactly why it is that people find it so difficult to save for retirement. Luckily, Prudential has spent some time trying to figure this problem out and have a series of videos that can help you realize some of these challenges. They created five videos which can be seen directly below. Hit refresh to see a new video (or if you can’t see the video player). The videos play in random order.
As I said above, there are five videos in this series and, in case you can’t watch them, here is a brief recap.
Video 1: Believe it or not, your brain is wired to see your future just the same way as you see a stranger. The problem is, you aren’t as interested in strangers as you are in yourself. This also means you aren’t as interested in your future self’s financial well-being as you are your current self. In the video, a group goes through a future self visualization process and after spending over an hour imagining their future selves the group has a new found commitment to their future selves and saving for retirement. Pretty neat trick if you ask me.
Video 2: The second video suggests you can fight procrastination with procrastination and I think they have a point. Two groups were given a long tedious test, but after they completed it group A was given a short break to recharge while group B was immediately given another test and was told they could do it now or take it home and do it later. Almost everyone in group B decided to take it later. After group A came back from a short break, they all decided to take the test now and just get it over with. It’s amazing what a quick break can do to stop procrastination.
Video 3: This video shows us how saving can be difficult because saving is like losing money to our brain. It activates the same pain centers in our brain. However, when we find money, it makes us happy. Instead of thinking about saving as losing money, think about it as finding even more money in the future! A great mindset shift!
Video 4: In this video, the famous marshmallow experiment is recreated. A child is put in a room with a marshmallow and told that they can eat it now if they want, but if they wait, when a person returns in a few minutes they’ll get another marshmallow. It’s hilarious to watch these kids decide, but the insightful part is at the end when they ask the kids why they made their decision and what they thought their parents would do.
Video 5: The final video shows why it is so hard to make a retirement investment selection when you have a large number (20+, for example) number of potential investments to choose from. They sit a person in a room with a bag of stuffed animals and a few organizing reference books and tell them to organize the stuffed animals with no other instructions. There are so many different types that it is impossible to decide how to organize them without further instruction because there are so many choices. Rather than pick a scheme and organize them, the people quit. Less choices helps to make decisions much, much easier!
Did you learn anything cool from these videos? I sure did! Share your favorite in the comments below!