Money Traps, Part 4: Mental Accounting

Filed under Gift Card Personal Finance

Whenever I receive an unexpected lump of cash such as a gift card, bonus, or tax refund, I find myself extremely tempted to treat it differently than other income. Instead of looking at the budget to see where it might best benefit our overall financial situation, I immediately think of what “extra” thing I could […]

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Money Traps, Part 3: The Sunk Cost Fallacy