WEBVTT - Calling You In: Financial Decisions That Are Killing Your Cashflow 0:00:00.200 --> 0:00:10.920 She's on the Money. She's on the Money. My name's 0:00:10.920 --> 0:00:11.800 Tatasha Bamblet. 0:00:11.840 --> 0:00:14.040 I'm a proud First Nations woman and I'm here to 0:00:14.120 --> 0:00:17.160 acknowledge country. Hello, beautiful friends, we gather on the lands 0:00:17.160 --> 0:00:19.959 of the Aboriginal people. We thank acknowledge and respect the 0:00:20.000 --> 0:00:22.680 Aboriginal people's land that we're gathering on today. Take pleasure 0:00:22.680 --> 0:00:25.079 in all the land and respect all that you see. 0:00:25.120 --> 0:00:29.520 She's on the Money podcast acknowledges culture, country, community and connections, 0:00:29.600 --> 0:00:32.720 bringing you the tools, knowledge and resources for you to thrive. 0:00:32.840 --> 0:00:35.519 Hello, and welcome to She's on the Money, the podcast 0:00:35.520 --> 0:00:38.680 that helps you feel more in control of your financial future. 0:00:39.159 --> 0:00:41.600 You've joined us for a deep dive. We're going to 0:00:41.680 --> 0:00:45.080 do just that, Beck. We're diving headfirst into a subject 0:00:45.280 --> 0:00:48.080 from the world of money and mindset so that our 0:00:48.120 --> 0:00:51.400 community can come out with a deeper understanding of it all. 0:00:51.479 --> 0:00:54.920 As I mentioned today, I am being joined by none 0:00:55.000 --> 0:00:59.120 other than miss Beck sayed Hi and Beck, I can't 0:00:59.280 --> 0:01:02.320 wait to hear your take on this topic. I feel 0:01:02.320 --> 0:01:05.520 like I've blindsided you, but you are ready. I promise, 0:01:05.840 --> 0:01:06.280 I'm ready. 0:01:06.280 --> 0:01:07.880 I'm ready. Thank you so much for having me. I'm 0:01:07.880 --> 0:01:09.840 excited to dive into things, So why do I have 0:01:09.840 --> 0:01:11.760 the feelings sweek? Subject is going to be a little 0:01:11.760 --> 0:01:14.679 bit polarizing because it is okay cool. 0:01:15.240 --> 0:01:17.000 I have been jumping up and down for the last 0:01:17.000 --> 0:01:22.160 couple of weeks telling people because I think people sometimes 0:01:23.000 --> 0:01:25.160 want to hear what they want to hear, not what 0:01:25.200 --> 0:01:28.360 they need to hear. And sometimes when it comes from me, 0:01:28.520 --> 0:01:31.800 you go back, Victoria, you were my friend, and I go, yes, 0:01:31.880 --> 0:01:34.880 I am, but I actually care deeply about you, and 0:01:34.920 --> 0:01:37.480 sometimes I need to tell you things that are going 0:01:37.480 --> 0:01:40.160 to put you in the best possible position. Like sometimes 0:01:40.319 --> 0:01:42.959 I'm not your best friend. Sometimes I'm your big sister, 0:01:43.600 --> 0:01:47.480 like I still love you. You think I'm annoying sometimes, but 0:01:47.520 --> 0:01:50.280 I really do deeply want the best for you. Scary, 0:01:50.600 --> 0:01:53.440 So let's just preface it with this episode might get 0:01:53.480 --> 0:01:56.279 a little bit uncomfortable for you. We're talking about something 0:01:56.320 --> 0:01:59.960 that thrives in group chats and open tabs every week. 0:02:00.240 --> 0:02:03.520 I would say they're the financial decisions that are killing 0:02:03.600 --> 0:02:07.680 your cash flow. You know exactly what I'm talking about, Beck, 0:02:07.840 --> 0:02:11.480 and our community knows as well. It's that impulse by 0:02:11.680 --> 0:02:14.040 It's the little sweet treat that gets you through a 0:02:14.080 --> 0:02:17.520 hard week or maybe it's the regular expense with the 0:02:17.520 --> 0:02:21.600 more long term consequences, whether my friend, you are in 0:02:21.680 --> 0:02:26.799 denial or you've become quite skilled at defending questionable money 0:02:26.840 --> 0:02:30.919 decisions with excuses like h victoria, but you should see 0:02:30.919 --> 0:02:35.519 my cost per use this week. Unfortunately, I step up 0:02:35.919 --> 0:02:40.240 to call you out, wow, and kindly call you out 0:02:40.639 --> 0:02:45.560 obviously and hopefully call you into reconsidering your spending behavior, because, 0:02:45.560 --> 0:02:48.000 as I said, I just genuinely want what's best for you. 0:02:48.639 --> 0:02:50.800 To walk you through it. We're going to be sharing 0:02:50.840 --> 0:02:53.800 some of the psychology behind these behaviors, some of the 0:02:53.840 --> 0:02:57.720 more common yet questionable money decisions both we and our 0:02:57.760 --> 0:03:02.120 community have defended before, and finally habits that will actually 0:03:02.160 --> 0:03:05.560 help you build wealth. But before we get their, miss 0:03:05.560 --> 0:03:08.000 Beec say ed, let's go to a really short break. 0:03:08.160 --> 0:03:15.160 Don't go anywhere, my friends, welcome back. I know that 0:03:15.240 --> 0:03:17.160 you aren't going to be surprised by this, but humans 0:03:17.200 --> 0:03:19.600 don't always make the most rational decisions when it comes 0:03:19.639 --> 0:03:21.400 to our financial behaviors. 0:03:21.400 --> 0:03:26.480 Beck, that's crazy. I can't understand why. I just I 0:03:26.520 --> 0:03:28.320 want to know why we're like this. I mean, I 0:03:28.320 --> 0:03:30.720 can understand that, you know, people have different upbringings and stuff, 0:03:30.720 --> 0:03:32.359 like that. But I know that there are plenty of 0:03:32.400 --> 0:03:34.480 people who seem to do well and can manage their money. 0:03:34.480 --> 0:03:36.560 But why do so many of us still make questionable 0:03:36.640 --> 0:03:41.640 choices when, like in most situations, we do know better technically. 0:03:41.680 --> 0:03:45.000 We know better technically. Well, if we have a little 0:03:45.000 --> 0:03:47.240 bit of a step back, we can look at the 0:03:47.280 --> 0:03:50.280 neuroscience of it all. And there's actually a lot more 0:03:50.360 --> 0:03:52.800 a play now for those of you playing along, I'm 0:03:52.840 --> 0:03:56.840 not just googling some neuroscience. I'm not a neuroscientist, but 0:03:56.880 --> 0:03:59.840 I actually do. Beck have two psychology degrees. Go figure 0:04:00.080 --> 0:04:04.360 that's grad Your girl is an overachiever at best. Seriously, 0:04:04.600 --> 0:04:07.520 I try very hard. But also that's what I thought 0:04:07.600 --> 0:04:10.160 I used to want to do before I discovered finance, 0:04:10.400 --> 0:04:13.480 and then I realized I could marry psychology and finance 0:04:13.520 --> 0:04:16.679 and impact your behavior. Yeah, that's sick. 0:04:16.760 --> 0:04:17.880 They kind of go hand in hand. 0:04:18.200 --> 0:04:20.800 They to me, they do, and like, I love it, 0:04:20.839 --> 0:04:23.800 But I think that you deserve that. I guess background 0:04:23.880 --> 0:04:26.719 on me if we haven't met before. So while you 0:04:26.920 --> 0:04:30.520 might Beck think that as adults we're pretty good at 0:04:30.560 --> 0:04:36.239 cost based analysis, in reality, most of our consumer purchasing decisions. Literally, 0:04:36.320 --> 0:04:39.480 research tells us that it's ninety percent of them are 0:04:39.560 --> 0:04:44.320 driven by our limbic system, which is the lizard part 0:04:44.320 --> 0:04:46.800 of our brain that controls our drive and our emotions. 0:04:47.040 --> 0:04:49.080 I love her, So, beck you get to blame your 0:04:49.080 --> 0:04:53.120 lizard brain. And this isn't because we are purely emotional creatures. 0:04:53.560 --> 0:04:58.560 It's because the systems actually work completely subconsciously, and they 0:04:58.640 --> 0:05:01.560 actually take less of a told to use on our 0:05:01.640 --> 0:05:05.280 mental loads and rational decision making. Okay, okay, that's why 0:05:05.320 --> 0:05:07.760 we'd be a little impulsive totally. 0:05:07.960 --> 0:05:09.279 I think it's really good to know. So it's like 0:05:09.320 --> 0:05:12.760 kind of like not my fault. I enjoy impulse buyers. 0:05:12.839 --> 0:05:15.640 It's my system, big system. 0:05:15.720 --> 0:05:18.400 It is your olympic system. It is your brain. Okay, 0:05:18.560 --> 0:05:19.040 your fould. 0:05:19.400 --> 0:05:20.320 I can work with that. 0:05:20.320 --> 0:05:24.160 That and there's a whole bunch of things like dopamine 0:05:24.400 --> 0:05:27.680 and all of the psychological levers that are pulled when 0:05:27.760 --> 0:05:30.800 we make financial decisions. While there is, beck As, you 0:05:30.880 --> 0:05:33.599 probably know a lot of information out there about shopping 0:05:33.640 --> 0:05:36.960 and how it has the ability to release dopamine in us. 0:05:37.560 --> 0:05:40.960 You know this idea of like retail therapy, it's actually 0:05:41.040 --> 0:05:45.559 really about the anticipation, not the actual ownership of that item. 0:05:45.640 --> 0:05:46.400 That thrills us. 0:05:46.600 --> 0:05:47.200 Is that right? 0:05:47.360 --> 0:05:50.640 Yeah, so like you just want to do the thing. Yeah, impulsive, 0:05:50.680 --> 0:05:53.000 We want the impulse, but it doesn't mean that we 0:05:53.040 --> 0:05:54.080 need to own the boots. 0:05:54.320 --> 0:05:55.960 That's so true. 0:05:56.040 --> 0:05:58.760 Actually, Okay, once we've got it, that's why we're chasing 0:05:58.760 --> 0:06:01.840 the next tie. Huh so boots, Okay, what's next? 0:06:02.200 --> 0:06:04.920 Yes, that is so true. What you're saying is anything 0:06:04.960 --> 0:06:07.720 rewards based has the potential to deliver that DoPT mean hit, 0:06:07.800 --> 0:06:10.479 but there's a bigger payoff in the moment before you 0:06:10.520 --> 0:06:11.680 buy something that makes. 0:06:11.440 --> 0:06:16.040 It feel so good exactly. Okay, it's like drugs. Literally, 0:06:16.160 --> 0:06:18.680 we just keep going back for that dopamine here, and 0:06:18.760 --> 0:06:21.279 it's really good, like at the end of the day. 0:06:21.320 --> 0:06:24.719 That's why it happens. That's why addictions form, and that's 0:06:24.760 --> 0:06:29.200 why a retail shopping addiction is actually a genuine addiction. 0:06:29.680 --> 0:06:31.880 Like and I think some people just flip it off 0:06:31.920 --> 0:06:34.040 and be like, oh, this isn't legitimate. Oh she's just 0:06:34.120 --> 0:06:37.080 justifying her spending. Like it is legitimate. It is a 0:06:37.120 --> 0:06:40.080 feeling inside of you that you can sometimes not control. 0:06:40.480 --> 0:06:42.960 So I think it's really important to point that out 0:06:43.000 --> 0:06:46.719 as well. And as we've seen, this has actually been 0:06:46.839 --> 0:06:50.680 proven throughout the rise of South Korea. So there are 0:06:51.000 --> 0:06:55.160 dopamine sites that they have developed, which are basically be 0:06:55.320 --> 0:06:59.400 get There's fake online stores that are created in order 0:06:59.680 --> 0:07:02.960 to simulate that feeling of shopping. You've got fake items, 0:07:03.000 --> 0:07:06.680 fake carts, fake delivery trackers that they give you, and 0:07:06.720 --> 0:07:10.559 it purely fuels this behavior because you're like, I'm gonna 0:07:10.600 --> 0:07:13.680 do the fake things send me are tracking, Oh it's coming. 0:07:13.720 --> 0:07:15.400 Oh my god, that's genius. 0:07:15.440 --> 0:07:18.800 I mean it never arrives, that's okay. But what's most 0:07:18.880 --> 0:07:22.440 interesting is even these sites use a whole bunch of 0:07:22.480 --> 0:07:26.320 different psychological strategies to make us want to buy things 0:07:26.360 --> 0:07:26.880 even more. 0:07:27.040 --> 0:07:28.600 Oh okay, dirty like dogs. 0:07:28.680 --> 0:07:32.560 Yeah, they're like gammifying the fake shopping. Yeah, I see, 0:07:32.560 --> 0:07:34.040 which I think is really interesting. 0:07:34.280 --> 0:07:37.120 Do you mean like sales offers or dark design tactics 0:07:37.200 --> 0:07:40.480 or like how they do you go somewhere else to purchase? 0:07:40.600 --> 0:07:42.320 Or it's like on the website? Why not both? 0:07:42.760 --> 0:07:43.520 Why not both? 0:07:43.600 --> 0:07:44.320 Why not both? 0:07:44.440 --> 0:07:46.320 And once I start reeling them off, you're going to 0:07:46.400 --> 0:07:49.040 know exactly what I'm talking about. So there's this whole 0:07:49.080 --> 0:07:54.400 thing called present bias, where we often overvalue immediate rewards 0:07:54.480 --> 0:07:57.080 relative to the ones that we might receive in the future. 0:07:57.400 --> 0:08:01.080 So an example of this is the free shipping threshold. Yes, 0:08:01.160 --> 0:08:04.200 so how often have you bought an extra thing that 0:08:04.240 --> 0:08:07.080 you actually didn't meet just to meet the free delivery 0:08:07.280 --> 0:08:12.360 threshold or have it upgraded to express? Like I do 0:08:12.480 --> 0:08:14.640 that too, and I always have to catch myself. Like 0:08:14.680 --> 0:08:16.840 the other day, I bought a jacket online and I'd 0:08:16.840 --> 0:08:18.960 been looking at this jacket for a really long time, 0:08:19.000 --> 0:08:20.840 and I knew once it came in stock, I wanted 0:08:20.840 --> 0:08:23.280 to purchase it. So I've been a bit, I don't know, 0:08:23.760 --> 0:08:27.080 creeping on the website and I was checking if they 0:08:27.240 --> 0:08:29.040 had it in stock yet they didn't, And like I 0:08:29.200 --> 0:08:31.240 do this like every week. I don't know if that's 0:08:31.280 --> 0:08:33.720 crazy behavior or if I just really knew I wanted it. 0:08:33.800 --> 0:08:36.040 I get it anyway, the second it came in stock, 0:08:36.200 --> 0:08:38.760 super excited at it to my cart. The second the 0:08:38.800 --> 0:08:42.560 cart said another ninety dollars until free shipping, I was like, 0:08:42.960 --> 0:08:44.640 I better check the rest of the store. 0:08:45.200 --> 0:08:50.360 Yes, yes, yes, no, ninety dollars is quite a jump, but. 0:08:50.040 --> 0:08:52.680 Anyway, I checked myself and spent my six dollars on shipping. 0:08:52.760 --> 0:08:56.040 And it is what it is, So wasn't great, but 0:08:56.120 --> 0:08:57.040 I did what I did. 0:08:57.280 --> 0:09:01.000 That's okay, You're allowed. And like, because the what is immediate, 0:09:01.120 --> 0:09:03.840 it seems like a better deal than it actually might be. 0:09:04.080 --> 0:09:07.200 Yeah, because like obviously they're getting an extra ninety bucks 0:09:07.240 --> 0:09:10.040 out of me for covering my six dollars shipping. Yeah, 0:09:10.080 --> 0:09:13.480 like that's that's not a good deal. That's me spending 0:09:13.520 --> 0:09:16.079 more money. Totally in my head, it makes sense. 0:09:16.280 --> 0:09:18.520 Yeah, And it's like, oh, I wonder what other items 0:09:18.640 --> 0:09:21.480 you could enjoy. But I'm like, well, that's silly. That's 0:09:21.600 --> 0:09:24.400 the I'm just wait as victim to the victim to 0:09:24.440 --> 0:09:24.959 the system. 0:09:25.000 --> 0:09:28.040 So the system exactly, our little lizard brains can't deal 0:09:28.080 --> 0:09:31.040 with it. And I want to come back to this 0:09:31.400 --> 0:09:33.720 point of the conversation a little bit later. But this 0:09:33.840 --> 0:09:36.240 is also a strategy that many buy now, pay later 0:09:36.360 --> 0:09:41.640 platforms actually completely exploit. Think about it, The immediate reward 0:09:42.040 --> 0:09:45.600 of getting that thing that you want now completely outweighs 0:09:46.000 --> 0:09:48.800 the ongoing pain of the purchase once you have it 0:09:48.880 --> 0:09:51.319 and having to pay it back, even if it is 0:09:51.640 --> 0:09:54.760 like better or more financially responsible for you to wait 0:09:54.880 --> 0:09:57.040 until you can afford it. You just want to buy 0:09:57.040 --> 0:09:58.480 it in the moment because you're like, but I want 0:09:58.480 --> 0:10:02.600 it now totally. Even if technically, Beck, do you need it? 0:10:02.679 --> 0:10:05.320 You'll be like no, but like I need it like 0:10:05.559 --> 0:10:09.200 I want it like, And it's so crazy how we 0:10:09.280 --> 0:10:14.320 can individually confuse needs for needs yeah, and once for 0:10:14.440 --> 0:10:17.120 wants like once for needs and needs for once you 0:10:17.120 --> 0:10:19.960 know what I mean, And I'll go, Beck, do you 0:10:19.960 --> 0:10:22.360 need it? And you go yeah, and I'll go yes, 0:10:22.800 --> 0:10:26.719 is it crucial and critical to your survival? And you're 0:10:26.720 --> 0:10:30.760 going to go, yes, I need another brown jumper, Yes 0:10:30.840 --> 0:10:34.280 I do, and like, but we get confused with our 0:10:34.320 --> 0:10:37.440 own feelings because like, internally you deeply want want that 0:10:37.760 --> 0:10:40.840 right totally, so it feels like a need. So I 0:10:40.840 --> 0:10:43.120 don't want you guys thinking I don't get it, like 0:10:43.559 --> 0:10:46.800 I too. I'm just a girl, like I do suffer 0:10:46.840 --> 0:10:50.319 from this and it's something that I have to consistently 0:10:50.360 --> 0:10:51.080 check myself on. 0:10:51.840 --> 0:10:55.080 That's very comforting. So that even you have a lizard brain, 0:10:55.200 --> 0:10:58.280 you have a lizard brain, so okay, sneaky, sneaky, sneaky. 0:10:58.640 --> 0:11:00.640 What other tricks he use to take advantage of our 0:11:00.679 --> 0:11:01.600 limbic brain? 0:11:01.920 --> 0:11:04.760 Okay, So lots of businesses like to use our lizard brain, 0:11:05.000 --> 0:11:07.880 and heaps of businesses will appeal to our sense of 0:11:08.320 --> 0:11:11.640 loss of version and our perceptions of the status quo. 0:11:12.200 --> 0:11:15.000 So this might actually be a little bit more common 0:11:15.000 --> 0:11:17.199 than you think, and it probably affects you in ways 0:11:17.200 --> 0:11:20.560 that you hadn't considered before. This isn't just that feeling 0:11:20.640 --> 0:11:22.280 that you get when you miss out on a really 0:11:22.320 --> 0:11:25.520 good sale a gift with purchase. Maybe you're and you 0:11:25.600 --> 0:11:27.880 might not resonate with this, but lots of my friends 0:11:27.880 --> 0:11:30.920 are going to resonate with this your next mecca beauty 0:11:30.960 --> 0:11:34.760 loop box. These might be the reason why you haven't 0:11:34.800 --> 0:11:40.000 switched banks or insurance providers like Yes, because the idea 0:11:40.120 --> 0:11:44.679 here is that somewhere deep down you are reluctant to 0:11:44.760 --> 0:11:49.600 lose the consistency or the comfort of what you're currently receiving. 0:11:49.840 --> 0:11:51.240 Yeah, you really like it. 0:11:51.520 --> 0:11:55.040 I get it. We like we're humans. We like being comfortable, 0:11:55.120 --> 0:12:00.760 and change is deeply uncomfortable, even if it's not financially 0:12:00.800 --> 0:12:05.000 benefiting you. The idea of switching or you having to 0:12:05.080 --> 0:12:09.640 inconvenience yourself back it triggers this loss of version, and 0:12:10.120 --> 0:12:12.880 you put it off and it ultimately costs you more 0:12:12.920 --> 0:12:15.680 in long term. Yes, how many times have you thought 0:12:16.080 --> 0:12:19.440 I could probably get a better phone plan. Mm, can't 0:12:19.440 --> 0:12:21.720 be bothered though I don't want to do it, like 0:12:21.800 --> 0:12:25.840 it's going to put me out. Yeah, inconvenienced. That's actually 0:12:26.080 --> 0:12:28.880 triggering your loss of version, and you feel like that's 0:12:28.920 --> 0:12:32.559 a loss, even though it's actually going to be a game. Yes, 0:12:32.720 --> 0:12:36.000 but your body is telling you I'm losing something, like 0:12:36.080 --> 0:12:38.920 you're not. Your lizard brain's not articulating that, but you're 0:12:38.960 --> 0:12:41.599 getting that feeling of loss with the idea that you 0:12:41.640 --> 0:12:43.400 would have to do some work to achieve that. 0:12:43.760 --> 0:12:46.640 Yeah, yeah, yeah, true, rude. I know. So it's not 0:12:46.720 --> 0:12:49.000 just because the process is painful. You're seeing that deep 0:12:49.040 --> 0:12:52.520 down somewhere, I would rather maintain the status quo, even 0:12:52.520 --> 0:12:55.040 if it costs me more, just to avoid change, or 0:12:55.080 --> 0:12:57.360 you're kind of like losing that. Yeah, the familiarity, the 0:12:57.360 --> 0:13:00.319 comfort of it all that it does cut it kind 0:13:00.320 --> 0:13:00.720 of sucks. 0:13:01.040 --> 0:13:04.760 Humans inherently hate change. Yes, we hate it. We don't 0:13:04.880 --> 0:13:05.160 like it. 0:13:05.040 --> 0:13:05.920 It's scary. 0:13:06.280 --> 0:13:08.800 Yeah, And like this could be like small things like 0:13:08.960 --> 0:13:11.520 if you caught the train to work and there was 0:13:11.559 --> 0:13:15.120 like it went down a different train line, you inherently 0:13:15.120 --> 0:13:17.480 wouldn't have liked that, even if it got you to 0:13:17.520 --> 0:13:21.160 the same place. Same time. You just don't like that 0:13:21.240 --> 0:13:23.120 it took a different route because that's not the route 0:13:23.160 --> 0:13:25.640 you would drive. It's why when we're in the car 0:13:25.679 --> 0:13:28.960 with our friends and they're the driver, and you're driving 0:13:28.960 --> 0:13:32.000 to somewhere that you know and they go with different route, 0:13:33.160 --> 0:13:36.040 is it a bad thing back. No, necessarily, because you 0:13:36.080 --> 0:13:37.280 still got to the same location. 0:13:37.480 --> 0:13:38.160 That's stressful. 0:13:38.240 --> 0:13:40.280 But you didn't like it because they turned left when 0:13:40.360 --> 0:13:43.960 you would usually like turn right, and you deeply don't 0:13:44.000 --> 0:13:46.920 like that because your lizard brain likes consistency. Yes, that 0:13:46.960 --> 0:13:48.960 makes so your lizard brain is like, no, this is 0:13:49.000 --> 0:13:51.560 not the same I want the same same, same sense. 0:13:52.120 --> 0:13:56.040 So I want you to think also of cognitive overload, 0:13:56.360 --> 0:14:00.280 so that decision fatigue that comes with shopping around. You know, 0:14:00.360 --> 0:14:02.320 I thought it was just me, but it's actually no 0:14:02.440 --> 0:14:06.680 coincidence that you instantly thought of how painful it might 0:14:06.720 --> 0:14:10.240 be to change providers or get a better deal or 0:14:10.960 --> 0:14:14.480 go a different route. Well, your mates driving like that 0:14:14.800 --> 0:14:17.800 makes me annoyed. Yeah, you know, other people might go 0:14:17.920 --> 0:14:20.720 that doesn't annoy me. Yeah, you're probably better than me. 0:14:20.760 --> 0:14:23.960 Your lizard's probably smarter. That's fine. But this is something 0:14:24.040 --> 0:14:27.520 called prospect theory, and it shows us that we also 0:14:27.640 --> 0:14:33.400 feel the pain of losses roughly twice as intensely as 0:14:33.480 --> 0:14:35.040 the pleasure of receiving gains. 0:14:35.520 --> 0:14:39.400 Wow, isn't that route That's really annoying. 0:14:39.640 --> 0:14:42.320 So like the little scale goes up a little bit 0:14:42.840 --> 0:14:45.800 if we're happy, and then down twice as low if 0:14:46.080 --> 0:14:49.120 we don't. Oh cool, exactly. 0:14:48.760 --> 0:14:49.440 Cool cool cool. 0:14:49.440 --> 0:14:51.760 So it's not again I want to remind you, it's 0:14:51.800 --> 0:14:53.080 your lizard brain, not you. 0:14:53.560 --> 0:14:53.920 Yeah. 0:14:53.960 --> 0:14:57.120 And research shows us that even if we know about 0:14:57.160 --> 0:15:00.320 these strategies, even if I teach you, even if I go, Beck, 0:15:00.520 --> 0:15:04.080 study this, tell me what is that strategy? You go, yep, 0:15:04.160 --> 0:15:05.240 got it on paper? 0:15:05.880 --> 0:15:06.040 Yep. 0:15:06.120 --> 0:15:08.440 There's no guarantee that we're going to be less susceptible 0:15:08.440 --> 0:15:10.920 to them, totally, like you're still got to get it. 0:15:11.800 --> 0:15:14.840 And so many of them are about operating on this 0:15:14.960 --> 0:15:20.200 subconscious level or falling back to our limbic lizard brain. 0:15:20.360 --> 0:15:24.360 It's like evolutionarily, we're before even the economy or any 0:15:24.400 --> 0:15:26.960 kind of like trade, whether it's money or whatever. It's 0:15:26.960 --> 0:15:31.280 like we're just we were built for this. We're built 0:15:31.360 --> 0:15:36.080 to be victims to yeah, exactly. 0:15:36.320 --> 0:15:39.320 And it's so annoying because like how many times Beck 0:15:39.400 --> 0:15:41.560 do I say, well, if you know better, you can 0:15:41.600 --> 0:15:44.120 do better, and like I always say that, and it's 0:15:44.160 --> 0:15:47.120 like about me personally, Like I'm like cool, if I 0:15:47.200 --> 0:15:50.560 learn I can do better. Yeah, well maybe not, maybe 0:15:50.600 --> 0:15:53.360 maybe not. Maybe we can learn and know better and 0:15:53.400 --> 0:15:55.000 then not do better exactly. 0:15:55.320 --> 0:15:57.520 So like do we send a chairs and are there 0:15:57.520 --> 0:16:00.440 any hacks to making more financially responsible decisions? 0:16:00.520 --> 0:16:02.480 Yes, there are. I didn't do this episode to make 0:16:02.560 --> 0:16:07.200 us feel bad about ourselves exactly. I think what might 0:16:07.320 --> 0:16:09.720 be most helpful is if we work on a case 0:16:09.760 --> 0:16:13.200 by case basis, using examples from our community. Beck, and 0:16:13.200 --> 0:16:15.840 we're going to sink our teeth in right after this break. 0:16:20.000 --> 0:16:22.240 All right, miss Beck sayed, we are back with another 0:16:22.360 --> 0:16:27.000 deep dive episode devoted to the psychology of spending. We're 0:16:27.000 --> 0:16:31.760 just about to unpack some of your most unhinged financial decisions. Recently, 0:16:32.080 --> 0:16:34.640 we asked our community to share some of the money 0:16:34.640 --> 0:16:39.120 habits that you just can't quit. Now. I say this lovingly. 0:16:39.520 --> 0:16:44.920 I say this like your your big sister scared. Sometimes 0:16:45.280 --> 0:16:50.520 some of you are making hectic money choices, and I 0:16:50.640 --> 0:16:54.480 am here to kindly remind you that there are plenty 0:16:54.600 --> 0:16:58.720 of others, sometimes better choices you could be making so 0:16:58.760 --> 0:17:00.840 that you can actually afford the life lifestyle you want 0:17:01.080 --> 0:17:05.880 and the lifestyle I believe you deserve, like you do deserve, 0:17:06.440 --> 0:17:10.720 just be financially well off. Back, so does everybody in 0:17:10.760 --> 0:17:14.040 our community. We've got to find a way for you 0:17:14.080 --> 0:17:15.560 do not work against yourself. 0:17:15.960 --> 0:17:17.480 Yeah, okay, help me, help. 0:17:17.280 --> 0:17:19.720 You, help me, help you, help me help you. 0:17:20.160 --> 0:17:21.479 Yeah. Yeah. 0:17:21.520 --> 0:17:25.119 So I've got a few messages and comments from our community, 0:17:25.480 --> 0:17:29.199 and I thought you could go through. I've given you 0:17:29.240 --> 0:17:30.120 some screenshots. 0:17:30.240 --> 0:17:30.640 Thank you. 0:17:30.640 --> 0:17:33.320 You could go through and read some of the questions 0:17:33.359 --> 0:17:36.879 from our community, and I can tell you what interventions 0:17:37.119 --> 0:17:39.680 or things I would suggest as a response. 0:17:39.960 --> 0:17:41.800 Perfect, Okay, I love this. I love this. It feels 0:17:41.840 --> 0:17:44.280 like a game. So that's when we have it is 0:17:44.280 --> 0:17:48.000 from Emmy. If it's on sale in big signs and 0:17:48.040 --> 0:17:51.240 stickers and bright lights and whatever other marketing ploy they try, 0:17:51.359 --> 0:17:53.639 it gets me nearly every time. So what would you 0:17:53.680 --> 0:17:54.440 do in this situation? 0:17:54.720 --> 0:17:57.240 Just get you two? Because like same, It's almost like 0:17:57.280 --> 0:17:59.520 if they put sale on it, I'm paying attention even 0:17:59.520 --> 0:18:01.280 if I didn't want it, I'm like, oh, but what 0:18:01.400 --> 0:18:02.600 is on sale? I mean? 0:18:02.680 --> 0:18:04.959 And you know the back rat knives always set off. 0:18:04.960 --> 0:18:07.080 I'm like I got, well, I gotta buy one. 0:18:07.520 --> 0:18:10.639 Why are they always I have questions? 0:18:10.800 --> 0:18:11.120 I know? 0:18:11.280 --> 0:18:13.920 And then is this right exactly? All right? 0:18:13.920 --> 0:18:14.200 Emmy? 0:18:14.280 --> 0:18:17.720 This sounds a little bit like framing, where offers might 0:18:17.760 --> 0:18:20.600 not actually be as good as they seem. Like, let's 0:18:20.600 --> 0:18:22.359 have a think about why they might need the big 0:18:22.400 --> 0:18:25.440 red sign to sell something to you, right right right, 0:18:25.840 --> 0:18:29.359 Like if it was so good, wouldn't it sell without 0:18:29.359 --> 0:18:31.199 the big red sign and the bright lights and the 0:18:31.200 --> 0:18:33.760 flashy things. It's so true, But they're getting my attention 0:18:33.840 --> 0:18:36.600 in another way, and you know what, this lizard loves flashy, 0:18:36.720 --> 0:18:41.720 shiny things. What I would be doing is investigating that offer. 0:18:42.000 --> 0:18:44.239 So is it actually a competitive deal or is it 0:18:44.359 --> 0:18:48.000 just marketing? I also want you to revisit your money goals. 0:18:48.359 --> 0:18:53.159 Let's remember what you're aiming for and stay focused because 0:18:53.440 --> 0:18:56.399 even if it is cheap and you know what gets me, 0:18:56.880 --> 0:18:59.840 sometimes I will justify it to myself literally there in 0:18:59.880 --> 0:19:02.600 the I'll be like knowing full well, I don't need 0:19:02.640 --> 0:19:04.879 the new top. Wow it's on sale, And then I 0:19:04.920 --> 0:19:07.200 look at the like fabric and I'm like, wow, that's 0:19:07.240 --> 0:19:10.560 like woolen cotton, Like that's really good construction. Beck, Yeah, 0:19:10.920 --> 0:19:13.040 that's not fake, Like, that's good. Do you know what 0:19:13.160 --> 0:19:14.680 fifty bucks for this good deal? 0:19:15.000 --> 0:19:15.560 Yeah? 0:19:15.640 --> 0:19:19.520 I might have to pick one up. Yeah, but I 0:19:19.600 --> 0:19:23.000 get it. We need to remind ourselves was this actually 0:19:23.040 --> 0:19:25.879 in my budget? Was I planning to purchase this? Could 0:19:25.920 --> 0:19:28.720 I potentially put twenty four hours between me and my 0:19:28.800 --> 0:19:32.520 spending on this item? And maybe let's add a buffer 0:19:33.240 --> 0:19:38.199 present bias like it causes us to overvalue immediate rewards. 0:19:38.640 --> 0:19:41.439 So maybe that twenty four hours between you and your 0:19:41.480 --> 0:19:44.960 spending is going to mean that the sale tomorrow looks 0:19:44.960 --> 0:19:47.440 a little bit dimmer. Yeah, and that's what we're hoping for. 0:19:47.520 --> 0:19:50.159 Right totally. You know, you could do if something's fifty dollars, 0:19:50.240 --> 0:19:52.760 you could be like, instead of buying it, you say, 0:19:52.760 --> 0:19:54.520 oh my god, I found fifty bucks on the ground 0:19:54.800 --> 0:19:56.440 and you've just put it into your bank account. 0:19:56.520 --> 0:19:58.360 Yeah, that's about a deal, you know what I mean? 0:19:58.400 --> 0:19:59.800 And you know what, every day I would prefer to 0:19:59.840 --> 0:20:02.720 f fifty bucks on the ground. Yeah, that's a good 0:20:02.760 --> 0:20:03.399 way to put it. 0:20:03.400 --> 0:20:04.320 Hey, thank you. 0:20:04.400 --> 0:20:07.320 Now the next one, okay, it was common. What is it? 0:20:07.800 --> 0:20:07.879 So? 0:20:08.280 --> 0:20:09.640