Watch the following video:

https://www.ted.com/talks/shlomo_benartzi_saving_for_tomorrow_tomorrow?language=en (Links to an external site.) 

Question: Looking to your own future savings for retirement, do you agree that you are more likely to save $200 every month with an automatic payroll deduction from your paycheck (versus you manually transferring $200 every month from your checking account into an investment account)?  Or do you think that you would save the same amount even without an automatic payroll deduction (you just have to check a few boxes in your online banking accounts)? Support your answer with a brief explanation of your reasoning (i.e., don't just answer yes or no). The response should be in 150-250 words. 

Then comment these two paragraphs. Each comment should be in 50-150 words.

Paragraph #1:

After watching the ted talk of Prof. Benartzi and knowing the principles, I have with money. I would save more without the automatic payroll deduction from my paycheck. The reason why I know this for a fact is that my relationship with money it is not emotional. I understand the importance of money in certain areas and the role of money in orders. I know for a fact that I tend to keep the money rather than spending in useless things, so using the automatic paycheck would limit my investments in the 401K when I feel it necessary to do it. It also gives me the power to fully control where I want to spend my money, using it for social actions, religious purposes, and implementing businesses relevant to society. With all these regards, I genuinely understand the automatic payroll would be a blessing for many people that cannot control themselves when they have money in their bank account; however, in my case. I believe it would not be necessary because of how diligent I think I am when dealing with money. 

Paragraph #2:

I personally believe that I would be more likely to save $200 every month if it were an automatic payroll deduction from my paycheck as opposed to manually transferring the money into an investment account. My priority is to chose the most efficient option which would be the automatic transfer. It would be a lot harder to control my spending behavior if I saw a larger sum of money in my online banking account. For example, if I have $10,000 saved in the account, I will feel like I have $10,000 to spend. If I held a smaller amount of $3,000 in an account I manually control, and I saw a television at the store for $1,000 that I didn’t need, I would perceive this as a greater loss as a percentage of the total amount I hold in the account. I believe the least efficient way to save is to chose the option in which you don’t separate the savings from the spending money, because then it is difficult to tell the difference.