This simple question actually has two parts to it. The first is why do we spend money and the second is what makes it so easy.
Why is it So Easy to Spend Money? - Money Mentors helping You Reach Financial Freedom
The first question: Why do we spend money? Unless you want to be a self-sufficient hermit you have to spend money!
Basic everyday needs like the roof over our heads, clothing and food have a cost. So, you do need money to meet these baseline needs. It is what happens after those needs are met, that make this a really interesting question.
If that is how you see life, then great and if it works for you, keep doing it. But I am guessing that, like me, maybe you like binary option tips few nice things in life that money enables us to buy.
A newer model car, a well-stocked pantry, perhaps the new technology toys and anything else you fancy. Money is emotional. One of the main drivers that makes us spend money is an emotional trigger. It could be anger, sadness, revenge, happiness and any other myriad of emotions that have us swiping our credit cards.
The first thing you need to check in on is your emotional state. How do you feel?
It’s easier to spend money than save it
If your emotions are heightened, you likely spend more money than you normally would. This is because your emotions have taken over so it will take a bit longer for your rational side to kick in. For example, if money means status to you. When buying a new car, your emotions are thinking about how cool you will look or how envious your friends will be. Money Fallacies.
Why is it So Easy to Spend Money?
We are susceptible to a whole range of mental biases and the stories that we wrap around them. But marketers are and they use this knowledge to help us spend money. So, what are some of these biases? If we are given money, or get an unexpected windfall, we are more likely to spend it on anything we want without giving it much thought. Our salaries, however, we tend to allocate to various categories this is called mental accounting and be quite clear on how we need to allocate it.
It’s easier to spend money than save it - the science of spending
Spending justification is a form of is it realistic to make money on trading. When you find yourself having these types of conversations, it is time to stop and step back and take time to let the rational thinking take control. We get Anchored! We latch onto a fact or an idea and we use that as a reference point for future decisions. This is why we are so good at buying things on sale.
We have seen the full retail price and then, we get a discount that is just too good to turn down.
Another example: the shop has three different versions of the same item and you pick the mid-price one thinking you are getting the best deal. Keeping up with the Joneses. Be very careful of this one. Keeping up with the Joneses can send you broke and guess what, maybe the Jones are already broke… Instant gratification.
Or as we like to call it, a Freddy Mercury moment.
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I want it all and I want it now! Which leads very nicely into the second part: why it is so easy to spend money. Credit cards. This piece of plastic has completely changed the way we spend money.
None of my answers are scientific. These are just mere observations, and of course, based on my own personal experience. For the record, I have a full-time desk job that gets paid every 2 weeks with a few side hustles tossed in here and there.
There have always been ways of obtaining credit. But the advent of credit cards as we now know them created a big shift in how we think and act with our money.
7 times you're better off spending than saving
Before credit cards we used cash. We walked into a shop and we handed over our hard-earned money and got something in exchange. The pain of paying occurred at the same time as the pleasure of buying, so we tended to think more about what we were which is easier to make and spend money our money on. But you get the pleasure straight away, and bitcoin profitability feels good to spend.
We are just wired that way. Spending money is so easy that we succumb — and worry about paying for it later.
7 times you're better off spending money than saving money - Business Insider
We have given you just a taste of the reasons why we find it so easy to spend money. These are very generalised reasons. If you want to dig a little more deeply which is easier to make and spend money your own personal reasons why you spend money, go to our Home page and take the Money Personality quiz.