The Wall Street Journal recently published an article, “The Hidden Reasons People Spend Too Much.” Not only did we read it word for word, we rejoiced! The subject of budgeting has been oversimplified when, in fact, it’s as complex as we are. Why? “The answers seem to lie in psychological impulses and blind spots that are tough for people to recognize, let alone overcome in their day-to-day lives.”
Let’s unpack everything the WSJ had to say about willpower, our inability to accurately measure income (inflow) and rising expenses (outflow), the true cost of saving and how our mood affects financial decisions.