Lagos - We all know some much repeated ways to
save money , like taking some off the top and paying yourself first, planning and sticking to a
budget, never leaving the house in fear of
spending money (you don’t have) like a
Hollywood rapper. But we still find ourselves partying spending like it’s 1999. Well, here are 5 money saving mind
tricks you may not have tried before. Money is time. You’ve been eyeballing a hot new Smart TV, even
though there’s nothing wrong with your current one. What can quickly put a 'want' into perspective is
thinking about how much time (not money) the item
you want costs. Think about what you earn per day or hour and see
how many days or hours of work that smart TV
will cost. Is your time worth the expense? Thinking about it
this way may change your perspective a little. Resist the decoy effect. Shopping centres and marketers have clever ways
and means of encouraging you to part with your
money, but the wiser you are to them, the easier they
are to resist. The decoy effect is when stores place one product
next to a similar but more expensive product. For example, there’s a camera for N80,305 and one
right next to it for N144,533. When people feel they’re getting a good deal,
they’re more likely to make a spontaneous purchase. You buy the N80,305 camera because you think it’s a
super deal and you saved N64,244. But the camera
still cost you N80,305. Get real about the fantasy life. Some of us are guilty of buying things we won’t
ever actually use. We buy them for the life we
would like to lead, like scuba diving gear for all
those exotic beach vacations you want to take. Or a mountain bike for the extreme sportsman you
want to be. Those are all great things to aspire too,
but before you head out and buy a new kayak, ask
yourself, "Will I actually use this or am I buying
it for my fantasy life?" It’s (not) yours. A common cognitive bias that kicks most of us in the
butt when it comes to spending is called the
Ownership Effect. Basically what happens is we
become more willing to pay higher prices for
things we think we already own. If you are out shopping for a new couch, for
instance, you spot one you think is perfect and create
an ‘attachment’ to it. You start to picture it in your lounge with beautiful
scatter cushions; you see yourself snuggled up on it
with a good book and a cup of tea. At this point in your purchasing process, you have
built up this couch in your mind and it flips a
switch that makes you value it more highly than
other couches. Now, no matter the other options presented to you,
even if they are cheaper and similar, you will be
more willing to pay more for the couch you think
you already own. See the bigger picture Having a picture of your financial goals, like a
jet ski or new fridge, right next to a photo of your
loved ones might not be the most romantic thing, but
having a picture to remind you of what you are
working towards can really help nip any trivial or
impulse buy in the bud