Lets say you found a deal on a new laptop youve been planning to buy and save $100.
Its human nature to tell yourself you now have an extra $100 to spend as you wish.
Its called mental accounting, and it can make you spend money you otherwise wouldnt have spent.
The Motley Fool explains:
The reason comes down to what behavioral finance researchers call mental accounting.
As the Fool says: the money isnt actually free, but it feels free.
Check out the rest of their post at the link below.
Never Shop Hungry, and Other Secrets to Saving Money| The Motley Fool viaFidelity
Photo bygeralt.
