6 Ways Your Brain Misleads You While Handling Money
Bangalore: "Price is what you pay; value is what you get.' Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." These are the words of the multi millionaire business man Warren Buffett. But how many of you actually know is the value you receive is worth what you are paying for. Often the human brain fails to judge the financial circumstances and misleads us to take up wrong actions. Here are 6 ways how your brain misleads you while handling money.
1. Do Not Label Your Money
Most of the time money is labeled by the source from where it comes. Money value must be considered in each and every form, may it be in a currency form or in the form of any coupons or vouchers. Frequently people don't hesitate paying 50 for food coupons or shopping vouchers but while paying 20 hard cash, the same person will think twice.
Similarly when people get money other than their regular source of income they are more inclined towards spending it, without considering the money value. For an instance if you earn bonus worth 25, 000, you will be more inclined towards spending it considering it an extra income. Does the same happen when you receive your salary?
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