bahrainthismonth.com | MARCH 2025 COMMERCE 51 The loop can be more easily activated when the motivation to spend comes from social pressure to buy the bag everyone has, the shoes etc. We also have so many cognitive biases and mental shortcuts like anchoring (relying heavily on initial price points) and loss aversion (fear of missing out on deals) that can lead to spending more than intended. While it can be cloaked as many different things, at its root, especially when its frequent and non-essential, spending can soothe a void very efficiently. The problem is, money is a semi-fixed good, which means that in order to get more, you must earn more. Credit card access makes us feel we have more than we do, and those cycles can be very unhealthy. If it’s obvious that we are better off spending prudently and saving more, why don’t more of us do it? In my view, the most common reason lies in the concept of time value of money which says that ‘money today is worth more than money tomorrow’. What this means is that when we defer an expense today for future financial security, the value of what we gave up can feel far heavier than the relatively intangible future gain. It just makes it difficult to convince ourselves of the need and value of that saved amount. If there is financial literacy, the knowledge of what the money can earn over time can bridge the value gap. However, the basic relationship we share with money could be the primary driver of whether the saving process is easy or challenging. So, this month, think about where you sit on the savings-spending scale and whether you are happy, guilt-free and mindful about your current position. If not, start noticing more and as you break down you smaller habits and see your patterns, you are likely to find yourself more receptive to small changes to make your spendingsaving experience less driven by guilt and regret and more rewarding. Pria is an experienced business consultant who works as a business coach and advisor helping clients improve their relationship with money. She also helps with strategy, business plans and idea assessments. You can follow Pria on Instagram @guide_my_idea and know about her experience at www.priamasson.com British Club 90th Birthday Anniversary The British Club of Bahrain celebrated its 90th Anniversary with a black tie dinner at its premises.
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