The Psychology of Spending: Why We Buy What We Don't Need
Break the cycle of impulsive buying. Understand the cognitive biases like 'Lifestyle Creep' and 'Anchoring' that keep you broke.
Personal finance is 80% behavior and only 20% head knowledge. Most of us know how to save, yet we find ourselves swiping for things that bring only fleeting joy. Why?
The Lifestyle Creep Trap
As our income increases, so do our expenses. We trade our old car for a luxury one, our decent apartment for a penthouse. This is Lifestyle Creep. In 2026, social media 'flex culture' has accelerated this, making us feel behind even when we are earning more than ever.
Anchoring and Relative Spending
Retailers use 'Anchoring'—showing you a $2,000 watch first so that the $500 one seems like a bargain. We don't judge prices in isolation; we judge them relative to what we just saw. By stepping back and asking "Would I buy this if it wasn't on sale?", you break the anchor.
True wealth is what you don't see—the cars not bought, the clothes not worn, and the freedom you've purchased instead.