Spend wisely by following a few simple rules
Spend wisely by following a few simple rules"
- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
| Duke University economist Dan Ariely has long studied people’s odd behavior around money, a topic he explores in his recent book, _Dollars and Sense_ (coauthored with Jeff Kreisler).
Ariely talked to AARP The Magazine about how to make financial decisions that bring you more contentment. YOU SAY THAT FINANCIAL DECISION-MAKING IS OFTEN IRRATIONAL. WHAT’S AN EXAMPLE? We
spend very differently depending on the medium of payment. For instance, when people pay their bills with a check — let’s say, the electricity bill — and then they move it to automatic
deduction, they end up spending, on average, 4 percent more. Why? Because when we write a check, we pay attention: We think about what we can save, we terrorize our family a little bit, and
we turn off some lights. But when the money goes automatically from our checking account, we don’t think about it as much, and we end up spending more. So payment is not just about the money
that leaves; it’s also about how much attention we pay to it. As we age, if we do more and more things with automatic deductions, it means we’ll pay less and less attention to what we’re
spending money on. DOES OUR IRRATIONALITY ABOUT MONEY CHANGE AS WE GET OLDER? I think the big difference comes when we retire. We move from being breadwinners to spenders, and we start
thinking of ourselves not as people who are helping our family, but people who are depleting savings. That’s a big shift. When people start eating into their principal, it weighs on them a
lot. In a study we did quite a few years ago, we found that retirees worried many times a week about whether they would outlast their money. Even people who could do it were very worried.
SO, LET’S SAY I HAVE ENOUGH TO LIVE ON, YET I’M STILL WORRIED. WHAT CAN I DO TO FEEL BETTER? Create a discretionary budget. You need to say, “Let’s figure out how much we can spend a month
on restaurants, movies and so on.” Life is about enjoying things, and if you have a budget for coffee and restaurants and beer that is $600 a month, don’t try to spend $400. Try to spend
$600. And I think the right approach is not to create a budget for coffee and a budget for movies and so forth, but to create one big budget for all the discretionary spending. Ideally, put
that amount in cash in a separate envelope, or on a prepaid card or something like that, and make it a goal to spend that amount. ARE PEOPLE TRYING TO EXPLOIT OUR IRRATIONALITY?
Trending News
Argentina working on plan to ‘recover’ the falkland islandsBuenos Aires said it is working to "recover" the Falkland Islands "peacefully" despite Britain claim...
Bank holiday forecast: ‘intense’ system to smash uk - new weather mapMET OFFICE FORECASTS SUNNY SPELLS AND SHOWERS FOR BANK HOLIDAY Low pressure from the Atlantic is expected to bring bruta...
Roosevelt tribute: los angeles county supervisor ed...ROOSEVELT TRIBUTE: Los Angeles County Supervisor Ed Edelman is having his colleagues adjourn today’s board session in me...
True blood cast lead heartbreaking tributes as nelsan ellis, 39, diesAnna Paquin went on: “It was an utter privilege to work with the phenomenally talented and deeply kind soul. @OfficialNe...
Targeting the phosphoinositide 3-kinase pathway in cancerKEY POINTS * The phosphoinositide 3-kinase (PI3K) pathway is a crucial signal transduction system linking the activation...
Latests News
Spend wisely by following a few simple rules| Duke University economist Dan Ariely has long studied people’s odd behavior around money, a topic he explores in his ...
Page Not Found很抱歉,你所访问的页面已不存在了。 如有疑问,请电邮[email protected] 你仍然可选择浏览首页或以下栏目内容 : 新闻 生活 娱乐 财经 体育 视频 播客 新报业媒体有限公司版权所有(公司登记号:202120748H)...
The handmaid’s tale season 2: story will go beyond atwood’s bookThe American drama, which sees a future deeply changed by nuclear war, portrays a group of young women - who are now Han...
Relativistic artificial molecule of two coupled graphene quantum dots at tunable distancesABSTRACT In a molecule formed by two atoms, energy difference between bonding and antibonding orbitals depends on distan...
Your virgin media bill goes up tomorrow, but there are ways to beat itVirgin Media customers were warned in January their bills would rise and now, the time has finally come. From today, Mar...