168. The Weird, Irrational Psychology of How We Spend - From $25 Airport Muffins to $12 Underwear
About this episode
This episode explores the irrational psychology behind our spending habits and how to align them with our true values.
We like to think we make rational financial decisions, but the reality is our spending habits are heavily driven by weird, internal cognitive biases. Today, we unpack the completely subjective psychology of how we value money, from price anchoring to mental accounting. By exploring our own financial quirks—like happily splurging on vacation while refusing to buy a $25 airport muffin—we uncover how to align our habits with our true values. Developing a personal spending philosophy empowers you to stop sweating the small stuff and confidently put your dollars where they bring the most joy. Get the full show notes, show references, and more information here: https://www.insideoutmoney.org/168-from-25-airport-muffins-to-12-underwear-the-weird-irrational-psychology-of-how-we-spend/
People in this episode
Host: Maggie Tucker
Topics covered
- spending habits
- cognitive biases
- financial decisions
- personal finance
- value of money
- psychology of spending
Keywords
- cognitive biases
- spending psychology
- financial habits
- price anchoring
- mental accounting
- personal spending philosophy
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