Examples with credit vs cash may not be quite relevant to “trivial inconveniences”. It seems to me, that the key here is, when one uses cash, they are physically giving away something material. With credit card, you just type in pin code, or sign a receipt, or whatever, but that does not register in System 1 as giving away something. So, no cash—no System 1 intervention, thus less regret on bigger numbers.
Counter example: I spend cash more frivolously than I use a card. Cash, in my head, is money that I’ve already allotted out of my available funds, and I’m more likely to be tempted to purchase trivial things if I have a wallet full of cash.
Examples with credit vs cash may not be quite relevant to “trivial inconveniences”. It seems to me, that the key here is, when one uses cash, they are physically giving away something material. With credit card, you just type in pin code, or sign a receipt, or whatever, but that does not register in System 1 as giving away something. So, no cash—no System 1 intervention, thus less regret on bigger numbers.
Counter example: I spend cash more frivolously than I use a card. Cash, in my head, is money that I’ve already allotted out of my available funds, and I’m more likely to be tempted to purchase trivial things if I have a wallet full of cash.