Rationalizing and being rational are two very different things.
Recently, I stopped by my local convenience store and found myself guilty of rationalizing, just like so many others. I needed a little caffeine boost to get through the day, so I grabbed a cold can of my favorite soda. However, this wasn’t the most rational choice—not in the way I went about it.
The can of soda cost $1.29. That’s far more than I should have paid.
A more rational option would have been going to a grocery store and buying a 12-pack for $7.79, which breaks down to just $0.65 per can.
But I convinced myself that I didn’t need a 12-pack; I only needed one can. Plus, I wanted it cold, not lukewarm. I didn’t want to wait hours for it to chill. So, I rationalized spending almost 200% more for a single can simply for the convenience of having it cold and ready to drink.
Let’s take it a step further. Instead of the 12-pack, I could have bought a 2-liter bottle for $2.79. At $0.47 per serving, that would have been an even better deal—275% less per serving than the can from the convenience store. But I rationalized my choice. The cold can was right there, available when I needed it.
(Note: I’m using the regular, not sale price in my calculations)
Even if I had only consumed half of a 2-liter bottle and poured the rest down the drain, I still would have come out ahead financially. Yet, I chose the convenience of a single cold can and paid a premium for it.
This soda example is a simple one, but it raises a bigger question: How many aspects of your life are you not approaching rationally? Think about your decisions. Are you rationalizing them instead of being truly rational?
It could be the college or education path you chose. It could be the size of the house you decided to buy. It might be the relationships you’re in or the job you accepted. How often do we rationalize these decisions without realizing we might actually be acting irrationally?
Take a moment today to reflect: Are you a rational person? If you’re like most of us, you may not even purchase a soda rationally. We rationalize decisions, convincing ourselves they’re the better choice, even when we know we’re paying 200-300% more for the sake of convenience.
As you move forward in 2025, challenge yourself with every decision: Is this a rational choice? Why? You might be surprised to find that many of your choices aren’t as rational as you think.
If you appreciate this perspective, let’s have a rational discussion about it. Perhaps it’s time to schedule your Financialoscopy® and start making truly rational decisions about your financial future.
