I have always been fascinated with the psychology of money and how it plays on people’s minds. This led me to find this book that I find provided many interesting insights to how our brain works counter-intuitively, when we deal with money. This book is called ‘Mind over Money’ by Claudia Hammond.
Among the dozens of nuggets of interesting research and findings, I’ve shortlisted the top 10 from this book and summarized them below.
- Don’t agree to split the bill equally when you go to a restaurant with friends until everyone has ordered.
- Use different bank accounts for spending and saving. The money will feel ‘further’ away and you’ll be less likely to dip into your savings.
- To make yourself happier, better to spend your money on experiences rather than material goods.
- Never offer to pay your friends for favours.
- If you are setting an asking price for something you want to sell, try to imagine that you don’t own it.
- If you are trying to cut back on snacks or any guilty pleasures, always pay for them in cash.
- When you are about to buy something using a credit card, imagine going to the ATM and withdrawing the same amount in cash. Would you still want to spend that cash?
- When choosing to buy a product, don’t be swayed to buy the one that is between the highest and lowest price. Instead evaluate the option for what you truly need.
- In negotiations, always name your price before the other person does unless you really have no idea what is a fair price.
- When bidding for an item, always have a maximum number in mind that you will not exceed.
Many of these hacks should resonate with you once you read them and you can probably deduce why they are recommended. To go into more depth and detail, go read the book!