When Buying Happiness, Pay Up Front

Last week we learned that one of the best ways to buy happiness is to spend money on experiences rather than things. Today, I want to explore a trick to squeeze a little extra happiness out of those same purchases.

The trick is paying in advance for as much of your experience as you can.

This helps increase the happiness you get from your experience in a few ways. First, it separates the event itself from the pain of paying. Next, the anticipation and delayed gratification will make you happier. Finally, in looking forward to your experience, the uncertainty of what is to come will bring you some extra happiness, as well. Continue reading “When Buying Happiness, Pay Up Front”

Saving Money Better – Recurring Expenses

As a preliminary note: Thank you all for the well-wishes in response to my last post! I had a lovely month out of the country (although everyone everywhere wanted to talk about Trump and the American election). If you’d like to see some pictures from Johannesburg, Kruger National Park, Durban, Cape Town, and Barcelona, feel free to check out my wife’s Instagram page. I also have some articles on vacation and travel coming up, in which I will include some photos from the trip.

And now back to your regularly scheduled programming…

I recently wrote about how to save money better. I argued that you should focus first on housing, transportation, food, and taxes. My explanation was that these are the areas where we spend the largest amounts of money, and so they are also the areas where we could save the largest amounts of money. Continue reading “Saving Money Better – Recurring Expenses”

The Ostrich Effect

You may be familiar with the term “burying your head in the sand.”

The image comes from the myth that ostriches avoid danger by sticking their heads in the sand and pretending it doesn’t exist.

When we are accused of burying our heads in the sand, it means that we are ignoring bad things in the hopes that they will go away. This is usually not a useful strategy. Continue reading “The Ostrich Effect”

Your Instinctive Thinking Is Losing You Money

Imagine for a moment that you are in the market for a new suit. You find one that you like for $200. A fellow customer then tells you that the same exact suit is on sale across town for only $100. Do you go?

Imagine that you are buying a new car. You’ve done your test drives and made a final decision on which make and model you want. You go to the dealer near your home to find that the car costs $30,000. A salesman sees you eyeing the car and says, “My manager would kill me for saying this, but the dealer on the other side of town has this model for $29,900.” Do you go? Continue reading “Your Instinctive Thinking Is Losing You Money”

Dealing with Disappointment

There has been a lot of ink spilled discussing the results of the recent presidential election here in the States. I’m going to add to it today.

You can relax, though, because I will not be talking about politics directly.

Instead, I want to talk about dealing with loss and disappointment. Continue reading “Dealing with Disappointment”

Why We Have Trouble Making a Change

When faced with a tough decision, most people choose to do nothing.

This is the basis of the Status Quo Bias, first proven in a series of experiments in 1988 out of Harvard. The general idea is that people are emotionally attached to the current state of affairs and are skeptical of any change from that baseline.

This means that we tend to need overwhelming proof to make a change, even when that change would be the better option. Continue reading “Why We Have Trouble Making a Change”

Defeating Decision Fatigue in a World of Choices

We live in a world where decisions abound. We have a plethora of options when it comes to just about everything. The alarm goes off and we decide whether to get up or hit the snooze button. We decide what to eat for breakfast. We decide which shampoo and soap and toothpaste to use. We decide which clothes to wear. We decide what method of transportation to use to get to work. We decide which route to take.

And that’s all before getting to our desk on a simple morning. Continue reading “Defeating Decision Fatigue in a World of Choices”

The Downside of Keeping Your Options Open

When given an option between a reversible decision and an irreversible decision, we tend to prefer the former. We like money back guarantees. We like no strings return policies. There is something comforting about knowing that we can change our minds in the future.

There is less pressure on us to make the perfect choice. We are not stuck if we make a bad decision.

We’re also inadvertently undermining our own happiness.
Continue reading “The Downside of Keeping Your Options Open”