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On another technology platform for only one day—because it was quickly taken down—there was an iPhone app for sale called “I Am Rich.” It simply displayed a few words of affirmation about being rich. It did nothing else. It cost $999.99. Eight people bought it.
When it comes to making financial decisions, what should matter are opportunity costs, the true benefit a purchase provides, and the real pleasure we receive from it compared to other ways we could spend our money.
One study found that people discounted the future less when it was described with a specific calendar date rather than as an amount of time. We are more likely to save for a retirement that happens on “October 18, 2037” than for one that happens “in twenty years.” That simple change makes the future more vivid, concrete, real, and relatable.3
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