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Does Social Saving Really Work?

Does Social Saving Really Work?

    There’s a Web 2.0, socially networked version of just about everything these days — including saving money for your goals. Sites like SmartyPig allow users to announce their financial goals to the world, network with other savers, talk about saving money on their other social networks and ask for help from friends and family. But does the social experience really help people save more money than they might otherwise?

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    Just the fact that several websites have put social networking together with saving isn’t enough to automatically say it’s a good idea. There are plenty of positives and negatives to the idea, so far, making it a surprisingly hard call.

    Who Should Really Know What’s In Your Bank Account?

    While I can name quite a few reasons to be leery of the social networking / saving combination, there is one in particular worth worrying about: who should know how much money you have — and what you plan to do with it? There are plenty of people who I don’t want to know what the contents of my wallet are, let alone what I have in my savings account. It goes far beyond the guy who always wants to mooch lunch off of me, too. I wouldn’t want an employer to get a good look at my savings goals: what if I’m planning for a long vacation that I haven’t told my boss that I plan to take? Or what if I’m saving for a goal that my employer doesn’t approve of? Think of how much damage a few photos on Facebook can do and then expand it to your financial decisions! I’m less concerned, admittedly, about the approach that websites like Wesabe take — allowing you to discuss your finances in forums and make the decision on how much information to share fore yourself.

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    On top of those privacy concerns, many personal finance sites worry me because of the potential for identity theft. Even if you’re only giving out your bank account numbers to websites you trust, every site that gets it — money management, social saving, etc. — is just a bigger chance that something will go wrong and someone will get access to your financial identity. Sure, it sounds a little paranoid, but sites like Mint have a long list of security measures in place because they need them. While having to give out your bank account number to make use of a service shouldn’t necessarily be a deal breaker, it should certainly give you pause.

    Does Support Really Make A Difference?

    The idea behind social saving is that the more support you get in working towards your goals (especially in saving money) the more successful you can be. In general, that’s a good argument: I know that I’m more likely to complete a goal if someone will hold me accountable for it. In terms of goal-setting, accountability does not need to be formal — just the fact that someone knows about my goal and will think poorly about me if I don’t complete it is enough to encourage me. It’s a relatively simple hack that can really increase your ability to move forward on your goals. That holds true for monetary goals just as much as any other ambition.

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    SmartyPig, in particular, makes the most of this incentive. It goes beyond informing friends and family about your goals. Instead, the site helps to engage them in the savings process — to the point of offering ways to ask your friends and family to donate to your cause. No matter the reason you might like that level of engagement on your own, it does seem likely to help savers significantly. Of course, just making mention of your goals in a conversation with a friend or a family member may be enough to provide the same benefit.

    Does Social Saving Really Help?

    Overall, it’s easy to conclude that social savings sites can be useful tools to create a support structure for yourself as you work toward a financial goal. It is less clear, however, whether the benefits that sites like SmartyPig offer outweigh the drawbacks to using them. It seems that, to a lesser extent, it’s possible to get the same effects without putting so much information about yourself out on the internet. But I don’t think that you can get the full effect with just a conversation or two with a friend. In some cases, it’s arguable that those benefits are worth putting all sorts of information about yourself online and allowing anyone to look at it.

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    The fact that some of these sites, including SmartyPig, can be very beneficial to our savings makes it harder to say no to them. In most cases, I would suggest that someone considering turning down 3.9 percent interest on their savings accounts — the rate that SmartyPig offers for money saved through its website — is out of their minds. Considering that many banks are dropping the interest rates they’ll pay on savings accounts, it’s almost a question of how much you’re willing to sell your information for. Either way, that interest rate can really boost your ability to save. There are plenty of sites that have made social lending an option — possibly a lucrative one — as well.

    Which direction do you lean on this one? So far, I’m reluctant to put my savings goals up for everyone to see, but I’d like to hear your decisions.

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    Last Updated on September 17, 2020

    5 Practical Ways to Get Over a Mental Block

    5 Practical Ways to Get Over a Mental Block

    There’s nothing quite like a state of “flow” when you’re working. The rare moments when your inspiration aligns with your motivation likely lead to some of your most creative work. Plus, it feels great to actually check a task or project off the list so you can move on to the next thing. Meanwhile, a mental block — its opposite — can cause work to feel laborious and uninspired. Forget creativity when you have a mental block — it makes it difficult even to start working on what you need to do.

    A mental block can manifest in several ways. Perhaps your imposter syndrome is squelching your creative ideas, for instance, or you’re overwhelmed by the breadth of a project and its impending deadline. Maybe you’re just tired or stressed.

    Either way, having a mental block feels like being trapped in your own head, and it can seriously dampen your ability to think outside the box. The problem is, you’re so locked into your own perspective that you don’t see more innovative approaches to your problems.[1]

    Luckily, jumping over these mental hurdles is simpler than you think. You just need the right strategies to get your flow back.

    Try these five practical ways to overcome a mental block.

    1. Break Your Project Down

    A few years ago, I was working on changing a company product that I believed would hugely benefit our customers. Sounds great, right?

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    As inspired as I was to make people’s lives easier, though, the sheer magnitude of the task at hand felt overwhelming. Every morning, I cracked open my laptop to work and felt totally paralyzed. I loved the idea, yes, but actualizing it felt risky. What if it didn’t turn out the way I pictured in my mind? More importantly, where would I even begin?

    A former colleague gave me great advice over coffee:

    Change how you think. Start by breaking the big project down into small tasks.

    When a major project overwhelms you, you only see the entire forest instead of the individual trees. And as you stare it down, you start to feel discouraged by your own lack of progress, thus slowing you down further.

    Breaking down a massive task into smaller chunks makes the work feel more manageable. You’ll have multiple clear places to start and end with, which will lend a motivating sense of productivity and mastery to your process. Learn more about it here: The Motivation Flowchart: The Mental Process of Successful People

    Think of it as accumulating small wins. When you realize you’re more capable than you have once thought, you’ll develop the momentum and confidence needed to get your big job done little by little.[2]

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    2. Change Up Your Scenery

    Of course, there’s a time and place for sitting down to get things done. But if you’re experiencing a mental block, switching up your surroundings can make a big difference in your output.

    Have you ever noticed how your environment directly impacts your performance and mood?

    Your brain associates your physical surroundings with certain feelings and activities. So, if you feel mentally stuck, your mind may need some new sensory stimuli.

    During this time in your life, it may not be possible to set up shop at a cafe or move from your cubicle to a conference room, so you may need to think outside the box. If you’re working remotely in a home office, try going to your dining table or couch. If the weather cooperates, sit outside for a bit with your computer or take a walk around the block.

    You can also simply rearrange your workspace. Not sure where to begin? Try decluttering. Some studies show that an organized desk enhances productivity.[3]

    The point is to stimulate your brain with new sounds and sights. You may find a much-needed dose of inspiration when you work while breathing in the fresh air, listening to city sounds, or staying in the comfort of your own living space.

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    3. Do an Unrelated Activity

    When it comes to productivity, a bit of distraction isn’t always a bad thing. That’s especially true if your chosen distraction helps you get things done in the long run.

    Have you realized how your most creative thoughts tend to bubble up when you’re, say, lying in bed or taking a shower? In their research of the “incubation period,” scientists have discovered that people’s best ideas seem to surface when they aren’t actively trying to solve a problem.[4]

    In a 2010 study, participants needed to look for a roommate or new employee based on the profiles that the researchers gave. The people who had a brief “incubation period” — in this case, working on an anagram — consistently made better choices than those who spent more time weighing their options.

    If you can’t seem to prime your brain for a project, try doing something completely unrelated to work, such as washing your dishes, working out, or calling a friend. Some experts say finding another low-stake project to work on can help jump-start the creative part of your brain and activate your flow.[5]

    The key is to allow your unconscious mind to do its best work: eliciting the new knowledge your conscious mind may be ignoring or suppressing.[6]

    4. Be Physical

    Feeling antsy? When your mind won’t seem to settle into a state of flow, it may help to swap out your mental activity for a physical one and see how it impacts your perspective.

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    While any physical activity is beneficial for your body — and getting up to move can serve as a helpful form of distraction — certain forms of exercise can more directly impact the mind. To be specific, relaxing, flow-based exercises like dance, yoga, or tai chi can create a gentle sense of momentum in your body, which can prime your brain for the same state.

    Stress-reducing activities may also be necessary. Meditating or taking slow, deep breaths will also calm your nervous system if you’re feeling overwhelmed. Evidence shows that the logical, creative part of your brain essentially shuts off when you’re stressed.[7]

    On the flip side, when your mind and body are relaxed, you can think more clearly, be more creative, and focus for longer periods — all of which will help you overcome a mental block.

    5. Don’t Force It

    It can be frustrating to fight against your own mind. If your mental block won’t go away after some effort, it may be time to take a break. Forcing creative thoughts only adds to your stress levels, which in turn inhibits your ability to think creatively. And if you sit and stare at a project for too long, you’ll not only waste valuable time but also begin to associate this specific work with frustration and produce work you’re not proud of.

    “I know that forcing something is not going to create anything beyond mediocre, so I step aside and work on a different project until it hits me,” the artist Ben Skinner said about his creative process.[8]

    If your work isn’t time-sensitive, then it may make sense to step away for a while to focus on something else, be it an administrative task that requires less creativity or a project that you feel motivated to work on.

    When the time is right, you’ll find your way back to the original task with a fresh, creative perspective (hopefully).

    More on Getting Rid of a Mental Block

    Featured photo credit: Jonas Leupe via unsplash.com

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