The way I think about money & spending has been impacted by numerous thinkers, ideas, research, as well as (largely) my own personal experiences. Here are two ideas that have challenged me over the years:
Many years ago, when TEDTalks were only just beginning to be mentioned at dinner parties and were only available by slow release on iTunes, I watched one by Dan Gilbert. He is a Harvard psychologist and “happiness expert”; the key argument in all of his work, I suppose, is that our brains systematically misjudge what will make us happy.
What I remembered for years and years was a story that swum around my brain and poked at my own perception of money:
Of course, this is not how our brains naturally work; we are not wholly rational beings and our brains are predisposed to compare according to the past, to scale, etc.
All I know is that this story (and there are numerous examples in his talk) stuck with me and began to challenge the way I perceived my own car/stereo spending. Here is the whole video (including Q & A; the talk is the standard 10 minutes), if you want to watch it later:
Here’s another story, this time from one of my faves, Chris Guillebeau. He wrote a book The $100 Startup, that was incredibly helpful and motivational when I was beginning dignify. This story was from a chapter on how to price products or services in a way that balances the value an item provides with the kinds of psychological barriers mentioned above.
How much do you judge a product or service on its value to you and how much is on camparison with other ways to spend your money? When or where are you most irrational with your spending choices? Share your comments below!
Photo credit: Allison Joyce
Last week, this article was published in the UK's Guardian, entitled The living hell of young girls enslaved in Bangladesh's brothels.
Our production partner, Basha, shared the link on their Facebook page with the following caption:
"This article gives you a glimpse of just how girls are broken down until they believe they feel they have no option but to stay in the brothel. We are committed to expanding our partnerships with non profits such as Friends of Basha to provide women a way out. And when you purchase Basha products, you make a way for us to hire more women. Articles like this fire me up to fight for freedom for these women. What about you?"
For me, here is the honest answer to the last question:
This week, I read about Uber's co-founder Garrett Camp reportedly paying $72.5 million for a mansion in the 90210, a record high for Beverly Hills real estate.
Wait, wasn't it only months ago that Uber went public with their IPO, stating that the company "may not achieve profitability"? In fact, revenues surged last year by more than 40% to $11.3 billion, but somehow Uber actually lost $1.8 billion (yes, 1.8 BILLION DOLLARS) in 2018 (reference).
Straight up: I don't understand these economics.
I recently read that some of the alarmist "facts" thrown around — namely, that the fashion industry is the world's second biggest polluter — are not entirely traceable, and may constitute "fake news".
But, whether this specific claim is true or not, it is clear that our consumptive habits have run wild. Here are a few (actual) facts related to the fashion industry: