Sense of Value Versus Real Savings
Financial Management

Sense of Value Versus Real Savings

What an interesting mindset/scenario this was. Imagine that you are currently using a pre-paid phone plan that costs about $12/month where you get sixty minutes of talk a month and it auto renews. Every month that you have unused minutes it carries over until you use up the minutes or cease to pay for a month. There is then this other plan that gives you the same minutes except it is about $7 a month and unused minutes simply get thrown out. Now for the person’s usage they barely even use 30 minutes a month. Which one do you think is better for them?

Interesting thing was I thought the second option would make more sense. However, the person was adamant in keeping the $12 plan because they insisted that since they get the minutes carried over that it is a better deal. Points were then brought up that if it ever turned out that they did need more then 60 minutes a month then it would be worth it. From what I saw though that has never been the case for years the person has been on that plan.

I suppose it is just hard for many people to give up having more even if they don’t use it. Makes you think at how many other things like this we do which ultimately just ends up making people spend more.

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