Today’s episode is a special rerun from the Afford Anything “Greatest Hits” vault, which is especially timely as we go through peak shopping season.<\/p>\n
Originally broadcast in January 2020, this conversation with behavioral economist Jeff Crisler explores the psychology behind sales, discounts, so-called \u201cfree shipping,\u201d and all the subtle emotional triggers that influence the way we spend. If you have ever wondered what a $100 sweater marked down to $60<\/em> Feels so much better than buying a regular $60 sweater (even though the price is the same), this episode makes exactly why.<\/p>\n Jeff and Paula explore five common money mistakes and four behavioral changes that can help you save more, spend intentionally, and avoid the mental traps that separate your best intentions from your real financial decisions.<\/p>\n Wealth-creation is a balance: growth matters, but security also matters; Defensive steps like thoughtful insurance or tax planning are part of long-term success.<\/p>\n<\/li>\n Umbrella insurance can be a smart defense when you reach a high net worth \u2013 especially if you have risk factors like teenage drivers, real estate or rental property.<\/p>\n<\/li>\n Small Roth contributions (or diversified tax-type allocations) create optionality \u2013 giving you the flexibility to react to future tax and income changes.<\/p>\n<\/li>\n Converting a traditional IRA to a 401(k) (to enable backdoor Roth) isn’t just about cheating the system \u2014 it can provide real, long-term benefits if you value tax diversification over short-term flexibility.<\/p>\n<\/li>\n Your financial strategy should evolve with life changes \u2013 income, risk exposure, family and plans all change over time.<\/p>\n<\/li>\n Avoid \u201cset and forget\u201d thinking: Periodically review your liability exposure, account mix, and insurance coverage to stay in line with your growing net worth.<\/p>\n<\/li>\n<\/ul>\n Note: Timestamps are approximate and may vary significantly across listening platforms due to dynamically inserted commercials.<\/i><\/p>\n 00:00 \u2014 Intro: Why we’re revisiting this greatest hits episode Thank you to our sponsors! wayfair prolone<\/b> <\/div>\n
\nkey takeaways<\/strong><\/h2>\n
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mentioned resources<\/strong><\/h3>\n
Chapter<\/strong><\/h3>\n
02:00 \u2014 The emotional side of money decisions
07:30 – Why sales and discounts trick our brains
13:00 – JCPenney’s failed “fair and square” pricing experiment
18:30 \u2013 Relativity and the psychology of \u201cwinning the deal\u201d
22:00 – How seamless payments encourage overspending
28:40 \u2013 Delayed Payment vs. Immediate Reward
34:10 \u2013 The endowment effect and overvaluing what we have
39:00 \u2014 Why opportunity cost is so hard to understand
44:50 \u2014 Four ways to protect yourself from yourself
45:10 \u2014 Solidify your future
46:40 – Hide money from yourself
48:30 \u2014 Make savings visible
51:00 \u2014 Build your identity around smart financial choices
55:00 – Where to find Jeff
57:00 – Concluding thoughts and next steps
60:00 – Outro<\/p>\n![\"Subscribe](\"https:\/\/affordanything.com\/wp-content\/uploads\/subscribe-on-android-afford-anything.png\")
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<\/b><\/a>go towards wayfair.com<\/strong><\/a> Now get up to 70% off Wayfair’s Black Friday deals. The sale will end on December 7.
<\/b><\/a>For a limited time, ProLoan is offering listeners 15% off sitewide and a $40 bonus gift when you subscribe to their 5-day program! visit Prolonlife.com\/Paula<\/strong><\/a><\/p>\n