Do you reckon you’re a spender or a saver? If you’re a spender – someone who is a bit more tempted by the latest phone or maybe spends a bit too much every now and then – don’t despair. We have our caveman brains to thank for poor money decisions and wobbly logic, so take it easy on the self-blame. The good news though, is that the same psychological ‘flaws’ apply to all spendaholics, so the tricks and techniques we can use are often applicable to many of us. 

Trick one – think about the opportunity cost. Before you spend money, take a moment to think about what else those dollars could buy. What (better stuff) are you missing out on by splashing out on this right now? 

Trick two – remember that bargain that has you drooling is likely to be just an illusion to get you spending. It’s a sales technique called ‘anchoring’ – setting something at a higher price in order to discount it. Being aware of it is the first step to resisting temptation!

Trick three – keep your credit card limit at a level you’re comfortable with, and try to pay your credit card off every month. For some people with high interest debt, consolidating your different debts into one loan may help pay off your loan faster. To see whether a debt consolidation loan might be right for you, check out our Personal Loans page.

Check out this clip from Mind Over Money with Nigel Latta explaining why we spend money we don’t have, and take our experiment to find out if you know the secrets of “price anchoring”.

Kiwibank have fully funded Mind over Money with Nigel Latta in an effort to help crack open our complex psychology around money and help us overcome some of what’s holding us back from being better off. Other articles to help people become money smarter can be found on Inner.Kiwi

Personal loans and car loans are provided by Latitude Financial Services Limited (“Latitude”). Kiwibank receives a commission for referring a personal loan to Latitude. Latitude’s lending criteria, terms and conditions, and fees apply.