Money waste paradox: Psychologist's insights

Have you ever noticed that it's way easier to waste your money on lots of smaller items than to buy something valuable and expensive?

It happens to most people - we can't easily buy something expensive at once, but see no problem in spending the same money on clutter.

Here are a few explanations on why that happens.

Perceived Value

Smaller items usually feel less expensive individually. So, when you buy them one by one, it may not seem like you're spending a lot.

Instant Gratification

Buying smaller items can provide a quick sense of satisfaction because you get something new each time you make a purchase. It's like a small reward.

Budgeting

It's simpler to budget for smaller purchases over time. You can set aside money for these items without feeling a significant financial impact all at once.

Variety

Small purchases allow you to try a variety of things and experience different products or experiences.

Avoiding Guilt

Spending on small items may feel less guilty or impulsive compared to one big expensive purchase. You may not dwell on the decision as much.

Conclusion

However, it's essential to be mindful of these small expenses, as they can add up over time. 

It might be more cost-effective and meaningful to save for and invest in a few larger, high-quality items that you'll use and cherish for a long time. 

It's all about finding the right balance for your needs and financial situation.
 

• Related news:
• money
• budget
• waste
• tips
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• 16 October 2023

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