It's new year. A time to set ourselves goals or resolutions to improve our life.
Some goals are about money. Maybe to earn more, but often it's saving. We want to spend, or waste, less of our money - and to build some savings. Good idea.
It's part of why casinos use chips. So that money feels like a toy and people gamble way more than they should. Even more than they would if playing with real money.
In a classic behaviour experiment to measure honesty, participants were given the opportunity to cheat to gain extra money.
Some cheating occured. But when given the opportunity to cheat for plastic tokens, which could be later exchanged for money, cheating more than doubled.
People's morality was a barrier to cheating for money. But with money-tokens people didn't consider it real money any more. And they let themselves go.
We can make a purchase before we've even thought about whether it's good value, or over-priced. Before we've even had a chance to weigh up whether our money could be better spent on something else - or saved.
While this makes for a very thin wallet, it's one of the things stopping us from reaching our financial goals.
Perhaps this can be your new year's resolution. To carry some cash and use it. When it runs out, get cash out with your next purchase, or from an ATM.
It may not be trendy but it's a great money-saving hack.
Some goals are about money. Maybe to earn more, but often it's saving. We want to spend, or waste, less of our money - and to build some savings. Good idea.
My easy money-saving hack
Pay cash. It's as simple as that.
How does that work?
Our brains are funny. Digital money doesn't feel like real money. Notes and coins do.It's part of why casinos use chips. So that money feels like a toy and people gamble way more than they should. Even more than they would if playing with real money.
In a classic behaviour experiment to measure honesty, participants were given the opportunity to cheat to gain extra money.
Some cheating occured. But when given the opportunity to cheat for plastic tokens, which could be later exchanged for money, cheating more than doubled.
People's morality was a barrier to cheating for money. But with money-tokens people didn't consider it real money any more. And they let themselves go.
"But cards and phone are so convenient"
Of course they are. And they're so quick. Often just tap-and-go.We can make a purchase before we've even thought about whether it's good value, or over-priced. Before we've even had a chance to weigh up whether our money could be better spent on something else - or saved.
"But I don't carry cash"
Yes I know. I've recently noticed a couple of my friends are in this mode. Advertisers seem to have done a good job convincing us that it's cool to not carry cash.While this makes for a very thin wallet, it's one of the things stopping us from reaching our financial goals.
Perhaps this can be your new year's resolution. To carry some cash and use it. When it runs out, get cash out with your next purchase, or from an ATM.
It may not be trendy but it's a great money-saving hack.
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