Pretend Money

When I went to upgrade my cell phone the other day, the salesman went on and on about what a great deal I was getting, saving hundreds of dollars. Thing is, I expected to get a free update, so in my mind, any money I spent was more than I planned on.

So, even though I was "saving" money, I was really spending it.

Have you ever seen Deal or No Deal? It's interesting to watch the way people react to the numbers on the board. Say a player gets an offer of $120,000 but opens some cases that drive the next offer down to $90,000. Invariably, the play feels like he's lost $30,000 and has to keep playing until he gets that money back.

The money was never his in the first place! Until it's in hand, it's imaginary money. My advice... take the deal! (One of many reasons I'll never be on that show. I wouldn't be able to sustain the drama.)

It's been interesting to watch reports on the high price of gas. I know it's affected us all and has driven up the cost of groceries and other goods, but it seems like our thinking on gas prices is warped. People will drive across town to save 3 cents a gallon, easily spending more on fuel to get to the distant gas station than they're saving.

Buy One, Get One Half Off! The posters at the shoe store scream. What a bargain. I'm saving so much. Only I don't need two pair of shoes. So I can spend $20 for the pair of shoes I need, or $30 to go home with that pair plus another that wasn't on my list. Why can't I just take 25% off the first pair? That's the same thing, right? But psychologically, it feels like I'm getting a good deal.

Only as soon as you hand over the cash or swipe the card, it's not pretend money any more.