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That's the thing though. Recurring payments hide the cost from you and it hides the fact are making a choice by owning a car instead of going to a nice restaura
by maximus-decimus 5y ago
That's the thing though. Recurring payments hide the cost from you and it hides the fact are making a choice by owning a car instead of going to a nice restaurant every month.
Paying for stuff only when you use it puts the costs in your face and puts you in control of your spendings.
- hiptobecubic 5y agoSure, but are you optimizing for "utility" or happiness? There are definitely circumstances where you can be happier "wasting money" than not.
- maximus-decimus 5y agoMy point is orthogonal to "utility vs happiness". Let's say someone spends $5 on starbucks per day, I just want them to realize that's $1800 per year and so they're really making the choice between a coffee per day and an RTX 3090 every year. Or a $150 bottle of wine per month. Once you accept you are indeed making a choice, then you have the power to consciously choose what you want to splurge on.
- hiptobecubic 5y agoBut it's ignoring the human psychology involved. "Ignorance is bliss" is true. Yes ok, I could have invested in $GOOG and earned a bunch of money that would be worth more to me today, but that just isn't how we process information. What happens instead is that I buy the coffee because I want it and now I can't even enjoy it because I know it's "stupid."