Beyond Willpower: Create a Savings Plan That Sticks

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Beyond Willpower: Create a Savings Plan That Sticks
Image credit: Qapital
1 min read

This story appears in the June 2016 issue of Entrepreneur. Subscribe »

“Saving money is like a diet -- everyone’s going to start tomorrow,” says George Friedman, CEO of personal savings app Qapital. “We can’t rely on sheer willpower, so we need to have some automation.” That comes in the form of specific goals that users set -- say, $5,000 for a trip to Tokyo -- and corresponding rules that save money based on spending habits. Every time you buy a pricey coffee, say, you’re “punished” by having money moved into your savings. “But as long as it’s going toward a goal you emotionally care about, you’re not going to withdraw the money till you hit your goal,” Friedman  says. Here’s a snapshot of the Qapital user. 

Average age: 27

Average income: $35K to $40K

Average goal: $2,000

Average savings: $200 per month

Top 5 goals:

1. Travel

2. Rainy-day fund

3. Gadgets

4. Debt reduction

5. Wedding

Check out more companies on the 2016 Brilliant 100 list

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