What is price anchoring? Why is our idea of a reasonable price completely arbitrary? How can anchoring affect your future decisions? Price anchoring is the process of establishing a product’s price as “normal” and making it the benchmark by which you judge all other prices. These anchors are irrational and can stack up to more irrational decision-making in the future. Keep reading for more information about price anchoring.
How do we rationalize dishonesty? Why does cash make us more honest? Experiments on the psychology of lying show that dishonesty is more common if we reflect on moral standards before lying or if we have at least one degree of separation from money. We can use this knowledge to stop rationalizing dishonesty and to become more honest. Keep reading for more on the psychology of lying.
What do you want your financial future to look like? What can you do to secure your financial future and ensure yourself a comfortable retirement? Being financially secure in retirement may be the last thing on your mind if you are in your 30s or 40s. But if you want to retire comfortably, it is important to start thinking of ways to secure your financial future many years in advance. Here are three ways you can secure your financial future so you can enjoy a comfortable retirement.
What should you consider when buying insurance? And what are some pitfalls to watch out for when signing your insurance plan? When buying insurance, you should always comparison shop and scrutinize all the options. You don’t want to end up paying for coverage you don’t need, or worse, failing to get the coverage you do need. Here are two pieces of advice you should keep in mind when buying insurance.
Do you dream of buying a home? How much money do you need to save for a house down payment in your legislation? Buying a home is one of the best investments you can make, despite fluctuations in pricing and shifts in the economy. It’s like a long-term savings plan—not only do you need to save for a house down payment, but any increase in value won’t be taxable until you decide to sell. Here is how to create a feasible plan to save for a 20% house down payment.
What are the three The Barefoot Investor buckets? What is the purpose of each bucket? In his book The Barefoot Investor, Scott Pape recommends distributing your take-home income over three buckets: blow, grow, and backstop. The blow bucket consists of money for day-to-day expenses, the grow bucket houses your long-term investment money, and the backstop bucket fund is reserved for emergencies. Here is an overview of each of The Barefoot Investor buckets.
Are you struggling to get out of debt? Are your debt contributions preventing you from spending your money the way you’d like? Being in debt can take an emotional toll. Learning how to systematically get out of debt will free you to save money for things you’d rather spend money on. Here’s how to systematically get out of your debt so you can save money for things you’d rather buy.
Do you want to make significantly more money than you are currently making? What are some realistic ways to boost your baseline earnings? Money does not grow on trees. If you want to make more money than you are currently making, you have to be willing to make some fundamental changes. Here are three strategies that will help you make more money plus some questions to help you decide which one will work best for you.
Do you want to apply the lessons from The Barefoot Investor? What are some The Barefoot Investor tips for personal finance management? In The Barefoot Investor, Scott Pape offers practical tips to manage your money so that you can eliminate debt and start building wealth. The was written for an Australian audience, but the following The Barefoot Investor tips are universally applicable. Here are five personal finance management tips from The Barefoot Investor.
What is Scott Pape’s book The Barefoot Investor about? Are Scott Pape’s personal management principles universally applicable? In his book The Barefoot Investor, Scott Pape offers guidance on how to manage your money so that you can eliminate debt and start building wealth. Though The Barefoot Investor book is written for an Australian audience, the basic principles are universally applicable. Here is a brief overview of Scott Pape’s book The Barefoot Investor.