3 Steps to Save Money When You’re Tempted to Spend

Why do so many of us struggle to save?

Saving for the future can be difficult because of a cognitive bias known as hyperbolic discounting: our tendency to place greater weight on immediate satisfaction, even if focusing on the long term will have a greater payoff. This bias is why, when you get a raise, you may consider getting a new car—incurring a higher monthly payment—instead of socking away more money each month for retirement and perhaps getting to retire several years earlier.