Step 2 of 6
Your money brain
Most money mistakes aren't about knowledge. They happen because two parts of us want different things.
The planner
Thinks long-term. Wants the emergency fund, the house and a calm retirement.
The doer
Lives for today. Wants the milk tea, the new phone and the 11.11 deal, now.
Good habits give the planner an advantage, so the doer can't win by default.
Mind tricks that cost you money
Anchoring
- What it looks like
- "Was ₱3,999, now ₱1,999!" The first price makes the second feel cheap.
- Beat it
- Ask: would I pay ₱1,999 if I never saw the old price?
Framing
- What it looks like
- "Only ₱33 a day" sounds smaller than ₱12,000 a year.
- Beat it
- Always convert to the yearly total.
Recent and vivid
- What it looks like
- A friend's crypto win makes it feel easy and likely.
- Beat it
- Look at long-term averages, not stories.
Hindsight
- What it looks like
- "I knew that stock would go up."
- Beat it
- Write down your reasons before you decide.
Keeping up
- What it looks like
- Spending to match friends, officemates or social media.
- Beat it
- Compare yourself with your own last month.
Good enough
- What it looks like
- Taking the first insurance or loan offered.
- Beat it
- Compare at least three options for big decisions.
| Trap | What it looks like | Beat it |
|---|---|---|
| Anchoring | "Was ₱3,999, now ₱1,999!" The first price makes the second feel cheap. | Ask: would I pay ₱1,999 if I never saw the old price? |
| Framing | "Only ₱33 a day" sounds smaller than ₱12,000 a year. | Always convert to the yearly total. |
| Recent and vivid | A friend's crypto win makes it feel easy and likely. | Look at long-term averages, not stories. |
| Hindsight | "I knew that stock would go up." | Write down your reasons before you decide. |
| Keeping up | Spending to match friends, officemates or social media. | Compare yourself with your own last month. |
| Good enough | Taking the first insurance or loan offered. | Compare at least three options for big decisions. |
Tricks that help the planner win
Picture it
Put a photo of your goal as your phone wallpaper or on your savings account.
Use buckets
One account or sub-wallet per goal. Money with a name is harder to touch.
Make it automatic
Savings and bills move on payday, before you see the money.
Remove temptation
Turn off shopping app notifications. Leave your credit card at home.
Wait a night
For any want over ₱1,000, sleep on it. Most urges fade by morning.
Tell someone
Share your goal with a friend who'll check on you, or save together.
Save from raises
When your pay goes up, send half the increase to savings before it reaches your spending.
Check less often
Review investments a few times a year. Daily checking leads to panic selling.
- Which trap catches you most often, and which trick will you try this month?
Your answer saves as you type