Have I successfully enticed you to learn more about the "biggest sale?" You are not the only one. In fact, the lure of a huge discount attracts a great deal of attention. But you need to ask yourself one question:
Were you persuaded by a big economic savings or was this an emotional impulse?
You may have convinced yourself that you were about to save a lot of money, but in truth, you were influenced by:
A good offer, which can trigger emotional responses
Scoring a major discount can produce positive inferences such as happiness, pleasure and excitement
the opportunity to experience Immediate gratification versus delayed gratification
the sense of scarcity that comes with a limited time offer and your desire to avoid feelings of regret
the sense of achievement, empowerment or being part of a group who took advantage of a great deal.
There are other influencers to your judgment beyond those listed above...and if you still believe you are in the camp of seeing yourself as someone who simply like the opportunity to save money, then let me ask you this: What was the product or service you were going to score that big savings? I never mentioned it!
My point is that maybe it's time you gain insights on how your behavior impacts your ability to manage your money. Seeking a new year's resolution you can keep? Dedicate a very small amount of time that can lead to big improvements to your financial literacy. Listen to FinWizdom. A podcast series dedicated to helping you understand investment concepts and various psychological biases that impact your financial decision-making. Each 20 to 25 minute episode explores how your emotions influence your judgments.
If you like what you hear or want to receive notifications when new episodes are added, make sure to subscribe!
This commentary was written by Joel L. Franks, Founder of FinWizdom.
©2021 FinWizdom, LLC.