Category Archives: spending

Reducing Spending: Helpful bits of Psychology to Know

1. We are poor at “affective forecasting,” or predicting how we’ll feel—in large part because we tend to project our present emotions into the future. As a corrective, hink not just about how you will feel about getting the item, … Continue reading

Posted in automatic vs controlled, material vs experiential, neuroscience, psychology, situational influences, spending | 10 Comments

My Rules for Creating a Solid Financial Future

Yesterday’s (5/17/08) New York Times featured an article by Ron Lieber titiled, “Five Basics for Building a Solid Financial Future.”) This reminded me of other “summary rules” posts I’ve seen, most notably the two below: http://www.thesimpledollar.com/2007/11/29/everything-you-ever-really-needed-to-know-about-personal-finance-on-the-back-of-five-business-cards http://blog.mint.com/blog/finance-core/three-principles-of-personal-finance-all-you-need-to-know-for-financial-success . After thinking … Continue reading

Posted in earning, investing, pragmatic vs symbolic, satisficing vs optimizing, spending | Leave a comment

You always want to try to get the best deal, right? NOT!

On the face of it, it sounds like trying to get the best deal is a good thing. Who wouldn’t want to get the best possible product for the least possible price? But economic theory and psychology research show that … Continue reading

Posted in economics, psychology, satisficing vs optimizing, spending | 5 Comments