Treat Each Dollar The Same To Avoid Bad Spending Decisions

To avoid losing money on small things, remind yourself that every dollar has the same value, regardless of what it’s used for. Ten dollars won in a friendly poker game has the same value as a $10 mail-in rebate, but too often the rebate goes ignored.Photo by epsos.

The blog Budgets Are Sexy explains that money gained or lost is still money gained or lost, regardless of how the transaction took place. It seems like common sense until you consider how you would feel losing $100 while gambling, for example, versus losing the same amount in bank fees. Most people would go to great lengths to avoid the fees, but gambling is no problem.

Strictly, a dollar is a dollar, and while attaching situational value can be fun, it can also enable bad spending choices. How do you remember not to overspend in little things? Share your tips in the comments.

Why Smart People Make Bad Spending Decisions [Budgets are Sexy]


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