Money & WorkMental model

Why a tax refund feels different from salary.

Mental accounting means you sort money into mental buckets even though every euro is worth the same. A €500 refund gets splurged, €500 of salary gets saved. A gift card is spent on nonsense, cash isn't. Economist Richard Thaler won the 2017 Nobel Prize partly for this insight. The buckets exist only in your head.

Useful: Use the effect on purpose: a separate, named savings account is harder to raid.

Source: en.wikipedia.org

Denkwerkzeug Konsum Psychologie

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