{"id":2886,"date":"2018-03-13T08:46:37","date_gmt":"2018-03-13T08:46:37","guid":{"rendered":"\/blog\/?p=2886"},"modified":"2023-09-03T10:26:27","modified_gmt":"2023-09-03T10:26:27","slug":"budgeting-tricks","status":"publish","type":"post","link":"https:\/\/www.lemonade.com\/blog\/budgeting-tricks\/","title":{"rendered":"These 4 Tricks Will Help You Spend Smarter, Science Says"},"content":{"rendered":"

Picture this: it\u2019s the end of the month, which means it\u2019s time to take a look at what you spent this month. You sit down with your computer and your cup of coffee, and anxiously begin to pull up your credit card statement. <\/span><\/p>\n

You suddenly feel a sense of dread, as you think back to that expensive sushi dinner and your impulsive shoe purchase at the beginning of the month. No matter how well you try to budget each month, you almost never manage to feel confident about reaching your financial goals. <\/span><\/p>\n

Let\u2019s be real: even if you set a budget, it\u2019s pretty hard to control spending<\/a> when the impulse to buy hits. In fact, millennials are 52% more likely than any other generation to make impulse purchases. (<\/span>Time<\/span><\/a>) How can we improve our spending in a way that actually works? We\u2019ve gathered 4 tips and tricks to boost your spending habits, backed by our favorite behavioral economists. <\/span><\/p>\n

1. Know the worth of a dollar<\/h3>\n

Picture this: you\u2019re waiting in line at the supermarket with your cereal and bananas in hand. Suddenly, a sale catches your eye – two bottles of wine for the price of one! It seems like a pretty good deal, but then you remember it doesn\u2019t fit into your budget. <\/span><\/p>\n

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<\/i>When making a purchasing decision – especially an impulsive one – it\u2019s difficult to imagine exactly what you\u2019re giving up.<\/a><\/i><\/p>\r\n\t\t<\/div>\r\n\t\t

<\/i>Tweet this!<\/span><\/a><\/div>\r\n\t<\/div>\r\n <\/span><\/p>\n

In other words, it\u2019s hard to understand the opportunity cost, in behavioral economics speak.<\/span> In the moment, you probably won\u2019t realize that buying two bottles of wine means less money to spend on going out with friends later. <\/span><\/p>\n

So how do we trick our minds into recognizing the consequences of our spending?<\/span><\/p>\n

Goals and anti-goals<\/span><\/h4>\n

\u201cThere\u2019s a trick we call goals, and anti-goals,\u201d explains our Chief Behavioral Officer Dan Ariely. \u201cTake two domains of life, let\u2019s say grocery shopping and dinner out with friends. Tie them together. \u2026 If you spend more on one, you spend less on the other.\u201d<\/span><\/p>\n