The Endowment Effect and Why I Have So Many Vehicles

From roolrool at Flickr Creative Commons

It's confession time: we somehow own five motorized vehicles.  As of March, we are in possession of a 2006 Toyota Matrix, a 1997 Jeep Cherokee, a 2006 as well as a 2007 Yamaha Vino 125cc scooter, and, most recently, a 2008 Kawasaki Bayou ATV.  What the hell is going on here?

I have to admit that I am embarrassed by this collection of vehicles.  Even though they are all paid for, I have some explaining to do.

Why We...Budget

From Alan Cleaver at Flickr's Creative Commons

Do your eyes glaze over when an online personal finance personality suggests a making a monthly budget?  Do you envision a life of sacrifice and suffering, mending torn clothing with a needle and thread, and eating the meager harvests of your local dumpster?  Or, worse, do you think you'll turn into a miserly grump who would rather count his nickels than spend them on his loved ones?  If you do, it's likely there are some emotions at work.  Namely, fear:  fear of the unknown if you don't know how to budget.  There may be fear that you simply don't have enough money, and making a budget may drag that depressing truth into the light of day.  Or fear of failure, especially if you've tried to budget before and have failed to stick to it...maybe failed repeatedly.