Today we discuss “malleable mental accounting” and how our brain plays tricks on us to circumvent self-control. Put simply, we keep a mental savings account that we use to justify unnecessary purchases.
The best way we’ve found to combat this phenomenon is the pay yourself first system. That way any “savings” you come across can be spent without thinking about it, since your long term goals are being met.
Sometimes things don’t go according to plan. Our hunt for an investment property has come up short, yet again. This time the duplex didn’t pass inspection. So the question is, do we give up or do we MAKE IT HAPPEN!
I think you know the answer 🙂
Everybody loves to take sides. In the personal finance world, you’re either for frugality or focusing on big wins. We think to build wealth, you need both. If it takes money to make money, then where does that money come from? And once you make money, how are you supposed to keep any of it if you can’t control your spending?
People often assume we obsess over money. That’s actually pretty far from the truth. In fact, we propose you might think about money more than we do.
What’s more important is that you approach every financial decision from a place of strength and control, not weakness. In the video, we discuss a few reasons why our lifestyle lends itself to that mindset.