Posts Tagged ‘psychology’

Spending Cash Hurts

Saturday, March 1st, 2014 by

This was kind of an interesting thought I heard where it was suggested that if you want to save money you should start spending cash because the sheer notion of you visibly seeing your money being given to someone else hurts and so you will be less inclined to do it unless it is something really important. For example, seeing yourself give a restaurant $100 for some kind of meal.

Kind of funny but true in many ways I think. I know for myself I usually use a credit card whenever I can and since I constantly monitor the billing on it I get a constant reminder of the money that is going to be taken out of my savings to pay for it. So in many ways that does help me in terms of developing the mentality to try and make as many financially savvy purchases as possible. I think that is better too where I pay everything at the end of the month where seeing myself transfer all the funds in one go really puts it in perspective if I spent too much or not. Sometimes you just need to see those big numbers for it to get it through to you.

Same Price For More Product

Thursday, January 30th, 2014 by

I was walking in a supermarket today for the sole reason of price checking as I was thinking of doing some shopping later in the week. One item I was looking for was the prices for cereal and it was so weird to see the pricing of these items. In the same store for example there was one box of 300 grams that cost about $2 and there was another one consisting of 600 grams for the same price.

I was then thinking, why would anyone get the smaller one? The only thing I could think of was maybe the store did that on purpose as a way to convince people to buy the bigger item as they simply want to get rid of the stock. I know that can work on people as in these instances the shopper feels like they outsmarted the company, so to speak, and so they go ahead and buy it.

I know sometimes it is just due to one item being on sale and the other isn’t, but usually I would say it is intentional to get people to buy things. It was funnier in this case as the smaller item was actually marked as clearance too. Go figure.

Wanting To Simply See The Money For Psychological Reasons

Wednesday, August 14th, 2013 by

Imagine this situation. There is a person who wanted over $10,000 from another person and said that they would return it whenever they wanted it as they have no intent to spend it. To prove this as well they were willing to sign anything like an “I owe you” as well as photocopying the cheque. So when asked what was the point of having it if that is the case the person’s answer was they felt more comfortable seeing that amount in their bank.

In some ways that is kind of odd. At the same time I guess I can kind of see how it can help people as it gives many a certain level of comfort. I know seeing the dollar amount of what you have in total is usually a good motivator to want to see it keep going up for example. Makes me wonder if this kind of thing is more common than I would believe.

What Is The Motivator To Do It Yourself To Save Money

Tuesday, May 21st, 2013 by

I was at the supermarket today and they had these large watermelons for sale. At the same time I was walking past the pre-cut fruit section and saw how those small package of watermelon were like the same price but you get so much less. Literally, if you simply bought a whole one and cut it yourself you could probably make like five boxes of them. The person I was with was then saying those were targeting people who simply don’t have the time to cut the stuff themselves.

While that is understandable to a certain extent, I was thinking to myself……how much labor is it really to cut something like a watermelon? The person then told me that for how much you save in this case he would find time to do it if he were one of those people who normally wouldn’t as people make too much money this way. That’s interesting I thought where if you think about the motivation to save money in this case isn’t so much about saving money but rather one feeling like they are being taken advantage of.

The more I think about it this can even be true with things like a real estate agent as many people tell me that they sell their own home not so much because of the potential financial savings but rather they can’t stand someone making so much for what seems to be so little effort. If that is the simple psychology to get people to try and do as much as they can themselves to save money I was thinking how watching documentaries or even instructional type of shows about various industries regularly can probably make people more savvy financially.

It almost sounds too simple but makes sense in many ways. Come to think of it, I have watched a lot informational kind of shows which were more about how certain industries work which indirectly made me more aware of what I buy and what is a reasonable price to pay. Maybe that will work for others as well.

Engaging In Conversations About The Future To Save Money

Wednesday, April 17th, 2013 by

About a week ago I was talking to a person about money and how just talking about the future can trigger a lot in your mind to the point where you will continually make good financial decisions. The example that was used was let’s pretend you were offered two choices in getting a free gift certificate for a store. You were told that if you take the offer right now you would get $20 and if you wait about two weeks you would get $50. So the question was which one would you take?

To me I obviously said the $50 as it sounded like it made more sense in the long-run. He was then saying of course people like myself would choose that. However, he was expressing how for this test if you actively engage people in conversations about what they plan to do in say the next week or two beforehand they will more than likely choose the $50 based simply on the notion that they are thinking about something in regards to their future. For people who usually don’t surround themselves in conversations such as those apparently they are more likely to simply go for the immediate gratification route.

That’s interesting I thought. If you think about it too this doesn’t mean you have to get people to talk about money or finance specifically. Instead, it could be a simple topic such as what are they planning to do for fun next week or talking about say where they plan to visit for their next vacation. The more I think about it the more this makes sense too I suppose for myself as I am usually always thinking about the future regardless of what topic category it may be.

Not a bad concept to take away I say especially if you are trying to find ways to teach like say a child on how to save money or how sometimes waiting a little can result in getting better rewards in the future.