Feeling a bit groggy this week?

Wondering who came up with this idea of Daylight Saving anyway?

The History of Daylight Saving goes all the way back to a satirical letter Benjamin Franklin wrote to a French Journal in 1784.

Benjamin Franklin, who enjoyed staying up until the wee hours of the night, wrote to the people of Paris (who apparently also loved the nightlife), “Your readers, who with me have never seen any signs of sunshine before noon, and seldom regard the astronomical part of the almanac, will be as much astonished as I was, when they hear of his [The Sun] rising so early.”

Franklin went on to talk about his surprise when, one morning, he woke up earlier than usual.

“I considered that, if I had not been awakened so early in the morning, I should have slept six hours longer by the light of the sun, and in exchange have lived six hours the following night by candle-light; and, the latter being a much more expensive light than the former..(read the full letter)”

Examining this expense in detail, Franklin drew up some calculations regarding how much the city of Paris could save if they were able to use more natural light.

Some of his suggestions were obvious comedy, like proposing a tax on houses whose windows didn’t let in the light. Or trying to force people to utilize natural light by posting guards outside candle shops to make sure no one purchases “more than one pound of candles per week.”

Still, Franklin’s assessment that, “All the difficulty will be in the first two or three days,” seems to be, in both the Spring Ahead and the Fall Back, so…yawn…true.

Having scrimped and saved these past few months it’s only fair to have dinner out tonight, right?

That depends.

Are you truly meeting your financial goals or does it just feel that way? If your savings account is not robust (despite your efforts) you may be experiencing what is known as The Licensing Effect.

The Licensing Effect is granting yourself permission to indulge based on the availability of  goal-related options as well as previous self-concept boosting decisions.  It occurs when we perceive that we are achieving a goal (saving money) and move on to the next goal (eating a delicious meal).

According to Psychology Today, a study conducted by Beth Vallen, a professor at Loyola College in Maryland, showed that an individual can experience goal fulfillment by merely having the option to behave in line with a goal, rather than doing the work to achieve it. (Wilcox, Keith, Lauren Block, Gavan J. Fitzsimons, and Beth Vallen (2009), “Vicarious Goal Fulfillment: When the Mere Presence of a Healthy Option Leads to an Ironically Indulgent Decision,” Journal of Consumer Research 36 (October), 380–93.)

Vallen studied The Licensing Effect within the context of healthy eating goals.

Presented with a menu that included french fries, chicken nuggets, and a baked potato participants (who rated high in self-control) typically chose the baked potato. But when the menu included a salad, in addition to the fries, nuggets, and potato, participants ultimately chose the deep fried potatoes slices. Rather healthy individuals chose the least healthy option available when a salad was present.

Having the option to spend less may be enough to put your mind at ease and enable you to spend more than intended.

The mere presence of bargain items may prompt you to get the luxury item instead.

The Licensing Effect also occurs when taking a step towards a goal and subsequently taking a step (or two) back by later granting oneself permission to act in a way that does not support the goal. Previous decisions affect future choices. In a research paper titled, “Do Green Products Make Us Better People?” the authors found that people exposed to green products showed greater concern for the welfare of others. Those who actually purchased green products, however, were shown “more likely to cheat and steal”. Having satisfied the desire to do something good for the planet it was then okay to take a little off the top.

What does this mean for financial health?

It appears that by shopping at Bargain Store, Inc. with its multiple dazzling signs of “Savings, Savings, Savings!” the odds of spending outside of your budget go up (not down). And while attempting to pay off debts, clipping coupons, and saving for the future, you may wind up purchasing “rewards” that set you off course.

Yes, it’s okay to say, “I’m worth it!” now and then. But make sure this is not happening too often.

How often is too often? That’s up to you and the financial goal (or goals) you set. Studies, like those documenting The Licensing Effect, continue to emphasize that the mind is an amazing beast. We may think we have it tamed, but it’s always going to be a bit wild. Tracking spending habits is a great way to remain objective when evaluating true progress towards financial goals.

Keith, Randy, and I joined 17,000 runners and walkers in the Race for the Cure on October 9th 2010 to help raise money for the Susan G. Komen Foundation.

As we were heading over to the starting line, an announcer came on the loud speaker and walked us through the progress that has been made since the Foundation was started. The survival rate for breast cancer thirty years ago was approximately 72%. With early detection and research (that has yielded better treatment options) the survival rate is now 98%. The speaker went on, but survival rate stats really stuck in my mind.

Pink sheets of paper were available for participants to write the names of loved ones,who had battled breast cancer, and pin them on the backs of their shirts. Some sheets read, “In Honor of” while others said, “In Memory of”. While running, I noticed one woman’s shirt read, “In Memory of: My Mother” and “In Honor of: My Sister and Me”.

It was humbling and inspiring to run with survivors and those who ran in memory of their loved ones.

Top Ten Money Saving Ideas

10. Hit a deer with your car and drive around with a dented door and a mirror that still has deer hair sticking to it. This saved me from a $150 speeding ticket. After the cop pulled me over she said, “Is that deer hair?” and gave me a warning.

9. Don’t speed. It’s Expensive. But it you must…(see above)

8. Wear clothes until they rip or have yellow stains under the armpits. If it’s clean and free from holes then it stays in the closet.

7. Eat at home.

6. When you do go out to eat–Order water. You have drinks in the frig at home.

5. Pre-Eat. This works great you are going out to get a change of scenery or to meet up with friends. Have something to eat before you leave. Then,  just have a cup of coffee and a piece of pie at the restaurant.

4. Meet friends at a park, rather than a restaurant or bar. Walk and talk. The fresh air is nice, too.

3. Make coffee at home rather than getting it on your way to work.

2. Get your books from the library.

1. Exercise. A healthy body is serious money-saver.

**Bonus tip: If you are currently in the habit of buying coffee everyday. Consider getting a gym membership at the YMCA. They have free coffee every morning. If you spend $3.50 or more on a daily latté, then you’re actually paying enough for two monthly memberships 🙂 **