A friend of mine has been struggling to save. She earns fairly good money. The challenge was that it was rather cumbersome for her to transfer money from her account to an investment account. She had to physically drive to her bank, fill out some forms, line up, and then withdraw cash from the teller. She then had to drive to another bank and deposit the cash. She would then scan the deposit slip and send to her account manager.
This was a rather painful process and I immediately realised that the resistance to save was too high because she didn’t have the right tools.
So I advised her to change her bank. Gladly she immediately acted. She opened up an account with a more progressive bank which gave her online and mobile banking options. She also opened another investment account with a more responsive institution. She then setup automatic monthly standing orders on her phone. She now routinely transfers her money from her mobile money account into her bank account. Any extra cash is easily transferred to her investment account. This simple change in strategy has led to ten’s of thousands of dollars in additional savings.
Sometimes all you need are the right tools to make a difference.