It’s a very simple hack.
Suppose you pay 30% tax on your earnings. That means, if you earn 100 bucks, you pay 30 bucks in taxes. Your net earning is 70 bucks.
Now, whenever you spend, why not add the taxes you have paid to that amount? For example, you want to spend 10 bucks to buy something. Instead of considering the cost as 10 bucks, why not consider it as 14.28.
Which means, the gross cost of the item you want to buy is 14.28.
Why did we do this? You have to earn 14.28. Pay taxes. And then be able to make the purchase of 10 bucks. You have to work to earn 14.28 bucks. Not 10 bucks.
It’s a mental accounting hack. I learnt from “The Art of The Good Life” by Rolf Dobelli. It’s a fantastic book. I highly recommend you read it.
Buy it here.