Financial savvy and intelligence don’t necessarily come in a package deal. Money skills are the product of attention to detail, logic and experience, and a shortfall in any of those categories can lead to financial disaster for brainiacs.
Budgets Are Sexy takes a look at reasons smart people can be dumb with money:
*Letting sales and discounts suck them in. The allure of a “good deal” can compel people to buy stuff they didn’t otherwise plan on acquiring.
*Treating different categories of expenses differently. The writer uses the example of unexpected bank fees versus expected gambling losses. Emotional and pre-decided ties to expenditures can twist the way people budget and spend funds.
*Focusing on percentages rather than actual figures. If someone’s willing to drive across town to save $25 off a $50 item, but too lazy to do the same to save $25 off a $1,950 purchase, something is askew.
What financial goofs have you noticed smart people making?
Why Smart People Make Bad Spending Decisions [Budgets Are Sexy]