Aug 09 2023 29 mins
Making Margin Podcast
Episode 48 - The Psychology of Spending
Welcome to the Making Margin podcast! Greenway’s team is here to discuss common financial mistakes and to help you navigate them.
Meet the voices behind this episode of Making Margin:
“A subtle problem with money is that assets are easy to measure but liabilities can be hidden.”-Morgan Housel
Today we’re talking about the psychology of spending, and why setting arbitrary limits that are well below what you can currently “afford” can make it easier to build wealth.
Questions
- Do you set arbitrary spending limits on certain things, even those things that you enjoy and can afford?
- What influences cause people to overspend, either relative to what they can spend or what they should spend?
Resources:
https://www.apa.org/monitor/2023/06/psychology-of-spending
https://collabfund.com/blog/rich-and-anonymous/
https://spectrum.mit.edu/winter-1999/the-psychology-of-spending/