What cognitive error occurs when someone thinks their past spending was justified?

Rationalization is a cognitive error where individuals justify their decisions or actions, often to maintain a positive self-image. In the context of past spending, when someone reflects on their financial choices and believes these expenditures were justified, they are engaging in rationalization. This allows them to avoid confronting the potential mistakes they may have made or the negative consequences of their spending habits. By framing their past actions as reasonable or necessary, they create a narrative that alleviates guilt or regret, demonstrating a common human tendency to reconcile conflicting thoughts or feelings about one's decisions. This process effectively shields them from the discomfort of acknowledging poor financial choices, which is why rationalization fits this scenario well.