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  • Writer's pictureSteve Coker, CFP

Save More...Tomorrow

We as Americans have a problem – we don’t save enough. In fact, a recent study by reported that 18 percent of those in the U.S. were saving virtually nothing from year to year. Of those who were saving, only about one in four Americans were saving more than 10 percent of their paychecks each year. If you find yourself as one of the under-saving majority, I’m not here to berate you, I’m here to give you hope with a simple solution. Save more…tomorrow.

Most people have a hard time taking money out of this month’s budget to stash more into their 401k – it all gets spent. The solution is to save more tomorrow. Here is what I mean: what if you made a commitment today to put any raise you receive in the future into your 401K? Your paycheck would never go down, and you wouldn’t have to cut anything out of your budget. Yet, over time, your savings in your 401K would steadily climb, year after year, almost effortlessly.

The idea, first popularized by professors Richard Thaler of University of Chicago and Shlomo Benartzi of UCLA’s Anderson School, seems incredibly simple. Yet, studies consistently show that the program works. In one study the average savings for plan participants more than tripled from 3.5 percent to 11.6 percent over the course of 28 months. If you want it to work for you, here is a simple way to get started.

Make the commitment today to save more tomorrow. Because of the success of the Save More Tomorrow concept, many 401K programs now have the ability to automatically add any raise into the 401K. That’s right, you can change the way your contributions to your 401K are set up right now and request that any raise that you receive will automatically be directed to your 401k, thereby automatically increasing your 401K savings rate. Since it won’t impact today’s budget, there is no reason to put it off. Since the money will never hit your paycheck, you will never feel like you are missing anything. Don’t know if your 401K offers the program? Check with your Human Resources department.

One of the biggest problems with savings is procrastination – it is just hard to get started. Today's demands on the paycheck are pressing and it is easy to put off saving for the future. After all, the future isn’t here yet. Yet, the future quickly catches up on all of us, and someday, in the future, you will be glad that you took some simple steps now to secure your retirement. If you aren’t saving enough, don’t beat yourself up about it. Simply make a commitment today to save more tomorrow.

Skowronski, Jeanine. "America's Best Savers Are Not The Wealthy." (March 30, 2015). Bankrate. Retrieved from:

Soergel, Andrew. "Almost Half of Americans Aren't Saving Nearly Enough." (March 30, 2015). USA News. Retrieved from:

Thaler, Richard. "Save More Tomorrow." (2002). Capital Ideas Vol 4. No 1. Retrieved from:


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