Why it feels so hard to save (and how to outsmart your brain)
The idea of putting money aside seems simple: spend less than you earn and invest the rest. But if it were really that easy, we’d all have healthy balances and less financial stress.
So why does it feel so hard sometimes? It’s not that you’re “bad with money”, it’s that your brain isn’t exactly wired for it.
Why your brain makes investing feel harder than it is
Our brains evolved to help us survive short-term dangers, not to prioritise long-term financial health. That’s great if you’re being chased by a lion, not so helpful when you’re trying to save for a house deposit.
Here are a few mental barriers that might sound familiar:
1. Present bias
We naturally prefer instant rewards. A $12 lunch today feels more satisfying than investing $12 for a future you can’t picture.
2. Loss aversion
Moving money into an investment account can feel like losing it, even though it’s still yours. That emotional resistance can make you hesitate.
3. Decision fatigue
After a long day of making decisions, transferring money into investments might fall into the “too hard” basket.
4 ways to make investing feel effortless
The good news? You can build wealth by working with your brain, not against it. Here’s how:
1. Automate before you even notice
Set up a recurring transfer to your Raiz account on payday. If the money never lands in your everyday account, you won’t feel like you’re missing it.
Brain hack: Treat it like a tax, not a treat. Something automatic, not optional.
2. Start small and scale up
Don’t aim for perfection or large chunks straight off the bat, start with $5 or $10 and gradually increase the amount. Small, consistent contributions build momentum.
Brain hack: Tiny wins are more sustainable than drastic changes.
3. Label your investments with emotion
Raiz Jars can help by naming your goal something personal, like:
- “My first home”
- “Freedom fund”
- “Sophie’s Japan trip”
Brain hack: Emotional goals create stronger connections and motivation.
4. Make it feel like a bonus
Use tools like Raiz Round-Ups to invest your digital spare change. You’ll build your investment balance without changing your spending habits.
Brain hack: Framing it as a reward instead of a chore makes it feel easier.
Investing isn’t just about willpower, it’s about designing a system that makes it easy. With a few smart tweaks and the right tools, you can set your future self up for success without even thinking about it.
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Important Information
This information has been issued by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) as Responsible Entity of the Raiz Invest Australia Fund (ARSN 607 533 022) and has been prepared without taking into account your objectives, financial situation or needs.
Before acting on such information, you should conduct your own review or consult a financial advisor before making a decision to invest. Please read the relevant Product Disclosure Statement and any associated reference documents before making an investment decision. In accordance with the Design and Distributions Obligations, we maintain Target Market Determinations for our Funds.
All documents can be found on the Raiz website www.raizinvest.com.au, or calling the Customer Support team on 1300 754 748.
