Commitment Devices
Katy discusses the surprising effectiveness of commitment accounts, which restrict access to funds until specific savings goals are met. Despite initial skepticism, these accounts led to an 80% increase in overall savings among participants. The analogy of Ulysses binding himself to the mast illustrates how people can benefit from self-imposed restrictions, highlighting a powerful yet underutilized strategy in both personal finance and investment contexts.In this clip
From this podcast
Capital Allocators – Inside the Institutional Investment Industry
Katy Milkman – How to Change (Capital Allocators, EP.199)
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