Copied from Behavior Gap Newsletter: When Ego Trumps the Numbers
Most of us can’t afford to pay more for, well, something that’s actually less or the same, but it’s hard to fight human nature. The people who sell us stuff know what buttons to push. So if we know people are out their pushing our buttons, how can we fight back?
As with many of my recommendations, they’re simple, but not easy.
- Ask one more question. I suggest you ask yourself, “If the numbers don’t justify the decision, what reason does?” The answer can highlight if you’re acting on knowledge or feelings.
- Wait 72 hours. We often get sucked into bad decisions because we react instead of plan. So give yourself a window to think through the decision. If you still want to act after 72 hours, you can have some confidence that your decision is based on sound reasons instead of emotion.
- Put someone between you and stupid. This recommendation applies mainly to big money decisions. Before you make a change, like investing your entire portfolio in a hot fund, ask someone you trust if your reasons make sense. A trusted third party can provide objectivity that we may be lacking.