Throw out what you think you know about budgeting. A new study says budgets can backfire, and the FOX 5 I-Team's Dana Fowle says you might spend too much money when you budget.
If you're confused, you should be. Even the researchers were left scratching their heads, so they ran their test six times to be sure they were right. The study says setting a price limit on single, big-ticket items like a refrigerator or a TV will backfire. For instance, if you set a $1,000 budget on a refrigerator, but at the store, you look in a range from $900-$1,200, you'll likely go with a pricier model that has more features.
Ryan Hamilton of Emory University was one of the researchers. He says it's a mind game you play with yourself.
"If you say that I don't want to spend any more than $100 on this purchase, you'll probably save more than if you hadn't decided that before you went into the store," Hamilton explained. "So, it's the setting a limit or of a range or of a boundary of some kind that pushes up you towards the limits of that boundary, and will probably make you spend more than you would have."
Hamilton says we end up spending not just a little more, but 50 percent more. He says if you make a list of the features you have to have and then go to the store, you will float down to lower price points.
Monday, June 17 2013 8:03 AM EDT2013-06-17 12:03:25 GMT
We all get excited about leaving town and going on vacation, so we tend to tell everyone about it. But, a word of caution before spreading the good news.
We all get excited about leaving town and going on vacation, so we tend to tell everyone about it. But, a word of caution before spreading the good news.
Monday, June 17 2013 7:13 AM EDT2013-06-17 11:13:04 GMT
Pomegranate juice has been sold as a real 'cure-all' over the last couple of years. But in a decision made this month, the FTC has ordered at least one manufacturer to back off on its strong health claims.
Pomegranate juice has been sold as a real 'cure-all' over the last couple of years. But in a decision made this month, the Federal Trade Commission has ordered at least one manufacturer to back off some pretty strong health claims.
Friday, June 14 2013 8:56 AM EDT2013-06-14 12:56:09 GMT
Retailers got the go-ahead to pass along some extra charges to you, but not without some rules attached. You might not have noticed them just yet, but you should be on the lookout.
Retailers got the go-ahead to pass along some extra charges to you, but not without some rules attached. You might not have noticed them just yet, but you should be on the lookout.
Thursday, June 13 2013 3:29 PM EDT2013-06-13 19:29:22 GMT
A man once hailed as a military hero was arrested on Wednesday. Former Holly Springs Police Officer Shane Ladner is accused of tricking people into thinking that he received a Purple Heart for being wounded in battle.
A man once hailed as a military hero was arrested on Wednesday. Former Holly Springs Police Officer Shane Ladner is accused of tricking people into thinking that he received a Purple Heart for being wounded in battle.
Wednesday, June 12 2013 11:36 PM EDT2013-06-13 03:36:50 GMT
Tonight at 10, FOX 5 I-Team reporter Randy Travis shows how long it took a local sheriff to finally arrest a repeat horse abuser – even after state inspectors had spent years trying to stop the abuse!
Tonight at 10, FOX 5 I-Team reporter Randy Travis shows how long it took a local sheriff to finally arrest a repeat horse abuser – even after state inspectors had spent years trying to stop the abuse!
Wednesday, June 12 2013 9:07 AM EDT2013-06-12 13:07:42 GMT
You may have noticed – or, at least heard – that mortgage rates are starting to inch up again. The I-Team's Dana Fowle is here to help you understand what this change means for home buyers right now.
You may have noticed – or, at least heard – that mortgage rates are starting to inch up again. The I-Team's Dana Fowle is here to help you understand what this change means for home buyers right now.
Wednesday, June 12 2013 6:59 AM EDT2013-06-12 10:59:03 GMT
The Better Business Bureau always takes a look back at the previous year, and compiles its top 10 scams list.
The Better Business Bureau always takes a look back at the previous year, and compiles its top 10 scams list. According to the I-Team, the list are schemes that have been around as long as the BBB, 100 years. The only thing different is the technology.
Tuesday, June 18 2013 5:56 AM EDT2013-06-18 09:56:03 GMT
Eager to cash in on the recent run of good news about the Stock Market, but you don't know how to get started? Here's how!
Eager to cash in on the recent run of good news about the Stock Market, but you don't know how to get started? Good Day Atlanta goes to the pros for answers!
Monday, June 17 2013 10:08 AM EDT2013-06-17 14:08:03 GMT
Now, it's time to get ‘phine' – and, yes, that's with a ‘P-H.' Fitness trainer Apollo Nida is here to help you get those arms and legs in tip-top shape for summer!
Now, it's time to get ‘phine' – and, yes, that's with a ‘P-H.' Fitness trainer Apollo Nida is here to help you get those arms and legs in tip-top shape for summer!
