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Your Paycheck Is Leaking: The 3-Step ‘Pay Yourself First’ System.
Business
November 10, 2025

Most people intend to save money but struggle due to psychological biases rather than financial ignorance. Drawing on Thaler and Benartzi’s “Save More Tomorrow” study, the article explains how behavioral economics reveals that procrastination, loss aversion, and limited rationality make saving difficult. The SMarT program uses these tendencies to help people save automatically by linking contributions to future pay raises. Combined with the “Pay Yourself First” approach, it shows that lasting financial security comes not from willpower but from creating smart, automatic systems that make saving the easy, default choice.

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