Are you Irrational?
A couple of days ago, the guy that wrote Living Rich by Spending Smart: How to Get More of What You Really Want, Greg Karp, had an article run on my local newspaper’s website.
The idea was comparing the spending habits of Homer Simpson and Mr. Spock (from Star Trek). You know, illogical vs. logical. I’ve cut out most of the article, but one passage really stood out for me:
If you don’t think you’re irrational with money, answer these questions: Would you mow your own lawn to save $10? Many people say, “Of course.” Would you mow your neighbor’s lawn to earn $10? Many people’s respond, “No way.”
Interesting, considering that from a money standpoint the questions are the same. A perfectly logical person would translate both questions as, “Would you mow a lawn to be $10 richer?” Answers to the questions should be the same, whether yes or no.
For me, if he’d up’ed the dollar figure to $15, well, I’d mow my own *and* the neighbor’s.
No problem. ;0)
