Why we spend too much without realizing it and how to avoid it

emonseo21

You had promised to stick to the budget, but you have doubled your expenses again, and you don't even know why. Although in these times of inflation price is the main culprit, it is not the only one, far from it .

Therefore, today I would like to discuss some of the most fascinating and unknown reasons why we spend too much without realizing it... and how to avoid them as much as possible.


What is the key factor that dominates the world and makes us spend more
ON THE SALMON BLOG
What is the key factor that dominates the world and makes us spend more
The reasons why we spend more than we should "unintentionally"
As with all important   UK Email List  questions, the answer to why we spend more is complex, multifactorial and involves aspects that, in many cases, we do not even know had an influence.



Thus, the fault that the budget does not balance for even a single month is due, among other things, to:

How marketing affects us , something we already saw in detail.
The ways in which they manipulate us with the architecture of the decision so that we spend more. Another topic that we also discuss.
Certain aspects of the psychology of money , such as spending more the more you earn .
The use of psychological pricing , which we also examine in depth.
The fact that money makes us make irrational decisions .
Other unknown and fascinating factors that cause higher spending.
I want to shed light on the latter today , so that they stop robbing us by taking advantage of the darkness.

As we will see, they are all curious, some almost incredible, and their influence is highly variable, but they are all based on data . And since economists believe in the power of compound interest above all else, we know that every penny counts when it comes to saving and that the more we know, the better we will manage .

After all, we also saw that financial literacy, and knowing everything we can about money (including its psychological aspects), is correlated with greater economic stability .

So let's start with how bad envy is for our savings.

If your neighbor shows up with a BMW, or wins the lottery, you will spend more
Sports car parked in front of a mansion
A fascinating study based on the spending habits of Dutch lottery winners discovered something curious, but hardly surprising if you think about it. When someone won something in the lottery, like a luxury car or simply money, the lucky person's neighbors tended to spend more .

If I try to instill something in my content on home economics and money management, it is that the context influences us much more than we think , and without realizing it.

Thus, when we are surrounded by an affluent context and we compare ourselves, we tend to try to integrate and spend more . Comparison with others is the root of unhappiness, but also of unnecessary waste, to continue thinking that we belong and that our status is not inferior to that of others.

Those two motivators are among the most powerful in human behavior. That is why it is better not to try to rub shoulders with richer people, go to fashionable (read: expensive) places for that selfie that no one cares about and, above all, let us remember that someone's worth is not dictated by the brand of their clothing. or the apple of your phone.