Psychology of Spending

Plugging the Holes in Your Budget

by The Happy Rock on June 3, 2010

The following is a guest post by a dear friend Ed(@ed_bruner) who is just months away from finally getting out from under $40,000+ in debt. Use cash to plug up the holes I assume every family budget has holes in it.  Ours did.  The holes were mostly unaccounted spending or personal spending…a trip to a retail store, a lunch out, snacks, etc.  These “little”spending events can destroy a budget or even derail your debt reduction if they are not kept in check. The way we handle this issue is by allowing ourselves weekly spending cash. The rest of the income […]

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This is a guest post by PF blogger The Weakonomist @ Weakonomics.com. He is a twenty something who works for a major bank and unlike most PF blogger has stayed debt free. For those who aren’t familiar with his blog, click through and say hello. I’ve never written for Happy Rock before so you probably don’t know much about me.  Normally I wouldn’t care to tell you and you wouldn’t care to know, but it adds context to my post.  I’m a young buck and getting married this fall.  Me and The Sheconomist don’t own much stuff, so we are […]

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We Spend Coins Faster than Bills

by Debt Destroyer on May 18, 2009

Lately I’m becoming an expert on the psychology of spending money, and it’s all thanks to my trusty radio. Last month I wrote about a story I heard on NPR which said that we can save money by carrying big bills.   Earlier this week I heard another story which goes hand-in-hand with the big bill story. According to this story, not only will we hold onto a $100 longer than five $20’s, but we’ll also keep a $1 longer than we will 4 quarters. I did some head scratching while listening to it. They talked about a couple of studies which […]

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Does Carrying Big Bills Save You Money?

by Debt Destroyer on April 7, 2009

On more than one occasion I’ve mentioned my love of public radio, so it should come as no surprise that a piece I heard this past Sunday made my wheels turn. All Things Considered ran a story about a study which found that people will spend less money if they carry around big bills rather than smaller ones. The idea was that it is psychological more painful to spend a $100 bill than it is to spend five $20’s. Does this sound familiar? It should, because this is the same logic behind the idea that using cash will save you money over using […]

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I still want a Snowblower and I Know When To Buy One

by Debt Destroyer on April 7, 2009

This year March went out as a Lion in my neck of the woods. This meant, yet another blizzard.  So as I spent a couple of hours digging out my driveway and sidewalks,  my thoughts turned once again to breaking down and buying a snowblower. My friends & neighbors were also asking me when I was going to get one.  They couldn’t believe that I lived on a corner lot and didn’t have a snowblower.  But then after a few minutes of conversation (yes, around here, conversations about snow removal can take that long) it seems most people delay the purchase until […]

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DD’s Monthly Expenses – February 2009

by Debt Destroyer on March 9, 2009

It’s a good thing that February is a short month, because we here at the DD household went WILD!!! Here is the latest breakdown of my family’s monthly expenses: $1032.00 – Investing $830.00 – Mortgage $664.10 – Health Insurance $639.00 – Daycare $520.36 – Vehicle Maintenance $475.50 – Groceries $468.23 – Electricity $210.83 – Phone & Internet $175.92 – Short Film Project $175.00 – Student Loan $169.16 – Medical Expenses $161.41 – Household Misc $150.00 – Obama Picture $58.45 – Dinning Out $53.00 – Movies $52.11 – Utilities (Water, Sewer, Garbage) no longer billed quarterly I guess. $48.30 – Gas $22.00 […]

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I’m going to Disney World! (In seven years)

by Debt Destroyer on February 7, 2009

Millions of us just watched the Superbowl and its tradition to have a player yell at the camera and say that he’s going to Disney World (This year Ben Roethlisberger and Santonio Holmes got to go). We here at the DD household have also caught Disney fever. You won’t be seeing us scream into cameras or anything like that.  But we are very excited none-the-less.  In fact, we just added it to our Wish List. Yep, well be there sometime in…2016. Well, we figured there’s no rush. I’ve been there a couple of times in my life.  First with my family and then […]

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Teaching Toddlers About Money – The Pebble And The Dollar

by The Happy Rock on February 5, 2009

The Happy Pebble(age 3) couldn’t contain his excitement as we pumped up a 3 foot long ‘rocket’ balloon and watched it sputter around the room. For him it was the joyous culmination of a life money lesson that he didn’t even know he participated in. The story begins with the Pebble and I making a few homemade thank you cards for gifts received at Christmas. It took us a few weeks after the holidays, but gratitude is better late then never. We mailed the cards off and in not too long he received a surprise letter in the mail from […]

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DD’s Monthly Expenses – January 2009

by Debt Destroyer on February 3, 2009

Here is the latest installment of my family’s monthly expenses. Without further ado here’s the breakdown: $830.00 – Mortgage $759.00 – Daycare $664.10 – Health Insurance $484.69 – Electricity $452.50 – Groceries $180.00 – Pearl Jam $175.00 – Student Loan $158.23 – Misc Household $146.84 – Clothes $117.01 – Gasoline $84.19 – Water, Sewer, & Garbage (quarterly) $60.00 – Medical Co-Pays $51.93 – Dog Food $25.92 – Eating Out $11.67 – Vehicle Expenses $4.60 – Movies For a grand total of $4205.68…Yowsers! Even though I used to freak out when we were this high, I have a feeling that the $4000 range […]

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Screw Saving Money…I Want a Snowblower!

by Debt Destroyer on January 16, 2009

I’ve had to shovel snow at least once a day for the past 6 days. I’m sick of it! I live on a corner lot so that means I have two long sections of sidewalk to shovel within 24 hours after it snows.  I also have a longish driveway which adds to the misery.  Throw in our walkways to and from the house and it takes me about an hour to get done.  Longer when I have to bust up drifts after a blizzard. Did I mention this is all done in below zero temps!?!? Every time after I get […]

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