GREENSBORO, NC -- This guy might not look familiar to you but he could be the key to you being better at managing money. Professor Richard Thaler won a Nobel Peace Prize in economic sciences.
He teaches at University of Chicago’s Booth School of Business and studies and publishes research on human behavior and money. One of his studies looked at what made people successful financially. (And no, it wasn't being born into money or simply having it.)
“People who are successful financially are investors or savers monthly, they're not trying to time it and put in a big chunk at a time or thinking they’ll save when they have this amount of money,” says Certified Financial Planner Matt Logan.
“It's not wait until I have a chunk, it's little bit by little bit. It's not starting with a lot of money. In fact, most people don't.”
The easiest way to do this is to automate your savings. Don't trust yourself to physically transfer the money. Have a plan and have money taken out of your check to your savings and 401k automatically.
What else should you do? Logan says, “Don't try and time the market. The right time to get in and start saving...is now. “I stare at investments all day long and there's no way I'm going to time the top of the market or the bottom of the market. It's impossible so you want to pick out a strategy and stick with it.”