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The Psychology of Money, From a Venture Capitalist’s Perspective
Morgan Housel’s new book focuses on stories about money, not tips
Here’s a common advice I hear a lot when it comes to spending.
If you see something that you really like, put it in your basket (online or in person) then abandon your basket for several days. Give yourself time to think about the purchase. If you’re still thinking about it several days later, then go ahead and buy it. And if you’re in a physical store, just leave it.
I love this kind of advice because it has prevented me from buying so many things that I think I need but doesn’t actually need. They’re simply wants. Most of the time, I’d forget about the items unless the website sends me an email reminding me of my unattended basket. (Unfortunately, for Amazon, it just stays around forever.)
Spending money is such an intentional act, and yet it’s not at the same time. We tend to buy things impulsively. That’s why many stores utilize product placement in a very purposeful way — to attract you, at the last minute, to buy something because you saw out of the corner of your eye. See the containers of gum while waiting to check out? What about all the candies? They’re just a few bucks, so why not?
