Mental accounting is a psychological concept where individuals categorize and treat their money differently based on subjective criteria rather than seeing it as a unified pool of funds. Understanding this concept is crucial because it influences how people make financial decisions and allocate their resources.

Loss aversion is a concept in behavioral economics that describes the tendency for people to strongly prefer avoiding losses over acquiring equivalent gains. Essentially, the emotional impact of losing something is felt more strongly than the pleasure derived from gaining something of equal value.

Hyperbolic Discounting is a concept from behavioral economics that describes how people tend to prefer smaller, immediate rewards over larger, delayed rewards, but their preferences change depending on the time frame. Understanding hyperbolic discounting can help individuals make more informed decisions about balancing immediate rewards with long-term benefits. By recognizing this bias, people can implement strategies to mitigate its effects and make choices that align better with their long-term goals.

Diversification strategy, in the context of behavioral economics, refers to the practice of spreading investments across different asset classes or sectors to reduce risk and increase the likelihood of positive outcomes. This strategy recognizes that investors are subject to cognitive biases and emotional influences that may lead to irrational decision-making, such as overconfidence, loss aversion, or herd behavior. By diversifying their portfolios, investors can mitigate the impact of these biases and enhance their overall investment performance.

Cookie jar approach is a way of investing which allows you to make savings and investments by allocating money to different buckets and manage expenses.

It's a visualisation technique used in therapy that targets a person’s unconscious thoughts about their problems so that they can better understand these thoughts and potentially change them. It's a specific type of guided imagery (a practice relying on visualization).

This budgeting system combines tracking purchases with the habit of mindfulness in order to reign in unnecessary spending and help you achieve savings goals.