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Mastering ‘Mental Accounting’: The Key to Persuasive Buying Decisions

Mastering ‘Mental Accounting’: The Key to Persuasive Buying Decisions

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I am excited. My wife and I are going on a cruise to India. It’s a big splurge for us, and we look forward to it. I mention it here, not to rub it in your face (much), but because in the booking of this cruise, I saw an excellent example of how my wife and I leverage mental accounting regarding our splurges.

When my mother-in-law passed, she left money for my wife, Lorraine. After I booked it, she commented that the inheritance paid for the cruise. As she said it, I thought, “Sure…but with that booking, we have now spent that money 27 times.”

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