Join us today for an episode about the reson understanding how you make decisions about money is important...
Today's episode is focused on the truth about how you make spending decisions...
In today’s episode about investing in others through stewarding your treasures, I talk with you about why you often buy with emotion but justify with logic after the fact. I also share how recognizing this is very powerful to your decision making. I also talk with you about one technique to help you defeat this tendency.
Join in on the Chat below.
00:00:00 Thanks for joining me on Episode 525 of the inspired stewardship podcast I'm Joe Saul-Sehy from the Stacking Benjamin's podcast. I encourage you to find ways to be inspired to find financial freedom in one way I do. That is to listen to this the inspired stewardship podcast with my friend's computer, not worry about whether it was a wise decision or not. You can just spend it and not stress about it. If you're a couple, you need to talk to each other about how much this is. What's the amount of money that one of you can spend without impacting the family,
00:00:45 the relationship and the budgetary strength? Welcome and thank you for joining us on the inspired stewardship podcast. If you truly desire to become the person who God wants you to be, then you must learn to use your time, your talent and your treasures for your true calling. In the inspired stewardship Podcast will learn to invest in herself, invest in others and develop your influence so that you can impact the world in today's episode about investing in others through stewarding your treasures. I talk with you about why you often by with emotion,
00:01:30 but justify with logic how recognizing this is very powerful and one technique you can use to help defeat this tendency as we talk about stewarding your treasures.
00:01:43 Wouldn't it be great if you could support this podcast and do it without costing yourself an extra dime? It turns out you can't.
00:01:51 All you have to do is use inspired stewardship dot com slash amazon when you're ready to make a purchase via Amazon,
00:01:59 and a small commission will come back to support the show. If you enjoy the show when you're ready to buy from Amazon,
00:02:06 just use inspired stewardship dot com slash amazon. Ah, logic. You know, all too often we like to think of ourselves is making these really rational decisions When it comes to our money,
00:02:20 we sit down and we weigh all the pros and cons of purchasing something or doing something with our money.
00:02:27 We look at it in terms of a very rational set of decisions, and then we use our money wisely.
00:02:37 There's even this theory called the theory of the rational investor that is is used when you talk about economics and over large numbers of people there's actually some truth to it.
00:02:48 But one of the things I've discovered in working with people in their money for many, many, many years now is that the truth is often times.
00:02:58 Instead, what we do is we purchase or make a buying decision, or we decide something about our money based on emotion and then retroactively.
00:03:11 We justify that decision using logic are using fax or using a rational decision making. We don't usually buy things based on some sort of riel rational,
00:03:25 logical decision making. We do it based on emotion. We do it based on how the product makes us feel,
00:03:30 or what we believe it will give us in terms of feeling or experience or emotion. We look at it first with how we feel,
00:03:41 and then what we do is after the fact we create a story for ourselves about how this was a rational,
00:03:47 logical decision. Think about it. If you've ever made a really big purchase and then you woke up the next morning and you had buyer's remorse where you feel like Oh my goodness,
00:03:58 what have I done? That was because you made an emotional decision and now your brain is trying to justify it logically and is struggling with that.
00:04:10 See, recognizing that this is how your brain works, that this is how you often make purchasing decisions is a powerful,
00:04:18 powerful tool for managing your money because you can recognize the fact that you usually are not this robotic decision maker who sits down and thinks about all of the pros and cons about a money decision before you make it.
00:04:35 Instead, you can recognize the fact that you purchase using your emotional decision making. By the way, this isn't a value judgment.
00:04:43 This isn't a bad thing. This isn't like, well, only people that make rational, logical decisions about money ever win or get ahead in life.
00:04:51 Or they're the best people where they're the ones that are able to use their money the most Wisely. There's nothing wrong with using emotion as part of our decision making.
00:05:01 The truth is that our emotional decision making is part of the way that we make decisions, and it's a powerful part and often that intuition that emotion is more right than the logical decision making.
00:05:18 So this isn't necessarily a bad thing, but there's also times where we make emotional decisions, and that sudden,
00:05:27 quick emotional decision does turn out to be something that in the long haul, we wish we wouldn't have done.
00:05:35 So Here's the thing that you can do one of the tricks of the trade. One of the ways you can gain a little bit more control over your monetary decision making is simply implementing on amount and a 24 hour rule.
00:05:50 And that amount will vary depending on your income and your savings and how much debt you have and whatever else.
00:05:57 But there needs to be an amount of money, and the rule is simple. If I need to spend more than that amount of money,
00:06:04 then I have to wait 24 hours before I can spend it. So for some people, it's a little as $100 or even less.
00:06:12 If you're really living paycheck to paycheck and you're strapped for cash, that amount maybe $10. If I'm going to spend more than $10 that isn't already planned on my budget.
00:06:22 I have to wait 24 hours before I can do it. If you're doing a little better, maybe it's $100 if you're doing really great.
00:06:31 Maybe it's a CZ Muchas 1000 or more dollars before you have to implement that. It kind of depends on what's your comfort zone?
00:06:37 What's the amount of money that you can spend and not worry about? Whether it was a wise decision or not,
00:06:44 you can just spend it and not stress about it. If you're a couple, you need to talk to each other about how much this is.
00:06:51 What's the amount of money that one of you can spend without impacting the family, the relationship and the budgetary strength?
00:07:01 And really, if you think about it, for most of us, once you've established that amount of money that it's simply a matter of having that waiting time now when your time to make the buying decision when you're facing that sudden decision,
00:07:16 you can legitimately say I have toe think on this prey on this. Reflect on this for 24 hours and then you do that,
00:07:26 you actually sleep on it. You wait Ah, full day and then you call the place back up and you spend the money or you don't because one of the things you will find is the things that ended up being the decisions that you probably were gonna regret often those things.
00:07:41 After 24 hours, you kind of go doesn't seem like it's really is pressing is it was 24 hours ago.
00:07:48 It's okay. Do not get this right now and you're able to delay it and put it off. By the way,
00:07:55 also, remember I said money not already planned in the budget. This isn't about having a 24 hour rule for everything that you ever spend.
00:08:05 This is for those things that you don't spend that are unplanned expenses. Someone calls you up and offers you solar panels or some other thing.
00:08:13 That sounds like a really great deal, and maybe it even really is. But often they want to do a high pressure sales technique that's based completely on emotion,
00:08:25 and then you regret it later. So this is about implementing that 24 hour rule for those sorts of situations so that you end up making the best decision for you and your money and not regretting it after thanks for listening.
00:08:45 Thanks so much for listening to the inspired stewardship podcast. As a subscriber and listener, we challenge you to not just sit back and passively listen,
00:08:58 but act on what you've heard and find a way toe. Live your calling. If you like this episode on the stewardship of treasures,
00:09:08 you can sign up for our treasures tips by going to inspired stewardship dot com slash treasures or text in the U.
00:09:19 S. 44222 Treasures tips and we'll send you five weeks of our best tips on stewarding your treasures until next time investor time,
00:09:33 your talent and your treasures develop your influence and impact world.
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In today's episode, I talk with you about:
A wise person should have money in their head, but not their heart - Jonathan Swift
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