#113 - The funny ways we think about money

salvation. A price is just a number, and while it can be a powerful part of a decision, it doesn’t, and shouldn’t, mean everything.

When it comes to making financial decisions, what should matter are opportunity costs, the true benefit a purchase provides, and the real pleasure we receive from it compared to other ways we could spend our money.

Many retailers think that bargain shoppers are singularly focused on saving money. But from the consumer perspective, I’ve found that bargains work because they are an assurance of value, capture consumers’ attention, activate their fear of missing out, and are a way to “win” against other consumers—and against retailers.

We forget that everything is relative When we see a sale, we shouldn’t consider what the price used to be or how much we’re saving. Rather, we should consider what we’re actually going to spend. Buying a $60 shirt marked down from $100 isn’t “saving $40”; it is “spending $60.” Aunt Susan never actually got $40 in her pocket, but she did get an ugly