Ep.203 Mental Accounting: Why We Treat the Same Dollar Differently

Mental Accounting: The Money Trap That Feels Smart (But Isn’t) Ever stash cash for a vacation while drowning in credit card debt? That’s Mental Accounting—your brain’s sneaky way of making irrational money choices feel logical. 🧠 Here's how it works: We assign different value to the same dollar based on: Where it came from (bonus vs. paycheck)What it’s for (fun vs. bills)How it’s labeled (savings vs. debt)But here’s the truth: 💵 A dollar is a dollar. And if you're earning 1...