The different rupees in my wallet

God created all rupees as equal- we divided them into bonus, gifts, salary and other things. Here is a sneak peak into the world of mental accounting and behavioral economics

The Simple Rupee

So you are walking alone on the road and you found a 500 rupee note. Like a nice person you ask around if someone has lost it but after a few minutes it is evident that lady luck is smiling at you.This 500 rupee note is yours to keep.

What would you do

Choice a) Keep this money in your wallet and move on

Choice b) Keep this money in your wallet and immediately start thinking about ways to spend it in ways you would have not spent your own money.

The chances are most of us will choose for b. The money that we found on the road is the money to splurge  where as the  money that we have in our pocket gets a serious thought.Behavioral economists call it mental accounting. To borrow George Orwell- All rupees are equal but some rupees are more sacred than others.

Mental…

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