Kristen Berman: prediction

Transcript context

…Is there a better approach to that specific problem that you've found, or is that too broad of a question? The first line of defense in any problem solving would be, how would you make it easier for somebody to do? And so, in the personal finance world, really, the answer to most things is just default. So, it worked for automatic enrollment 401(k). The reason we have retirement savings in America is because people are defaulted into saving from their paycheck. So, that would be first line of defense. Obviously, difficult for product teams to execute on, takes a lot of backend infrastructure. So, if we were just solving the personal financial management stuff of like a budgeting alternative, we'd actually go to making it not just logistically easier, but cognitively easier. So, we call them rules of thumb; instead of having to decide in the moment, do I do this thing? And you're weighing the pros and cons. It's kind of typical econ, like, how much is this $3 worth to me? You'd actually make a rule of thumb that says, "Do I do it, or not?" So, instead of deciding, do you take a Lyft when you're coming home from work, you'd have a rule of thumb that says, "I don't take Lyft on the weekdays. I take it on the weekends." Very simple now to actually make this kind of decision. It's a heuristic . It's not going to be perfect, but it's going to help you reduce your spend in an easier way, at least, in a way that you'd stayed adherent to. It reminds me a bit of James Clears' idea of creating this identity for yourself where he is like, "If you're like, 'I am a person that doesn't take Lyft on the weekdays', that becomes kind of this identity component and that makes it easier for you not to do that." Is that related?…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.