Pay rise = less money?
A hefty pay rise might not be as good as it first sounds, a blog on LearnVest says. The blog tells about a marketing professional who received a substantial pay rise that had an immediate effect –on increasing spending. Known as lifestyle inflation, some experts suggest trying to avoid spending more as income rises by keeping to the “old” budget and channelling the increased wages into long-term saving and investing goals.
Best interests at heart…
Giving financial advice is widely seen as an expert service a post by applied economics professor Uwe Dulleck on independent news portal The Conversation says. But despite this specialist knowledge, the post tells how it is likely that even the most experienced financial advisers will be subject to thinking biases. Because these thinking traps are often not conscious choices, there may be a risk even if they only have the best interests of a client at heart.
Precision is key
As a society, we have a love of round numbers a blog on Psychology Today says. But in an experiment researchers have discovered that it might be more useful to use a precise number when negotiating deals. So when you are next negotiating a pay rise it might be worth asking for a 9.8% or 10.2% rise rather than a 10% - the blog concludes that less resistance might be encountered, as recipients of precise offers might believe that more effort has been invested in preparing the negotiation.