counter create hit Dollars and Sense: How We Misthink Money and How to Spend Smarter - Download Free eBook
Hot Best Seller

Dollars and Sense: How We Misthink Money and How to Spend Smarter

Availability: Ready to download

Why is paying for things painful? Why are we comfortable overpaying for something in the present just because we’ve overpaid for it in the past? Why is it easy to pay $4 for a soda on vacation, when we wouldn’t spend more than $1 on that same soda at our local grocery store? We think of money as numbers, values, and amounts, but when Why is paying for things painful? Why are we comfortable overpaying for something in the present just because we’ve overpaid for it in the past? Why is it easy to pay $4 for a soda on vacation, when we wouldn’t spend more than $1 on that same soda at our local grocery store? We think of money as numbers, values, and amounts, but when it comes down to it, when we actually use our money, we engage our hearts more than our heads. Emotions play a powerful role in shaping our financial behavior, often making us our own worst enemies as we try to save, access value, and spend responsibly. In Dollars and Sense, bestselling author and behavioral economist Dan Ariely teams up with financial comedian and writer Jeff Kreisler to challenge many of our most basic assumptions about the precarious relationship between our brains and our money. In doing so, they undermine many of personal finance’s most sacred beliefs and explain how we can override some of our own instincts to make better financial choices.Exploring a wide range of everyday topics—from the lure of pain-free spending with credit cards to the  pitfalls of household budgeting to the seductive power of holiday sales—Ariely and Kreisler demonstrate how our misplaced confidence in our spending habits frequently leads us astray, costing us more than we realize, whether it’s the real value of the time we spend driving forty-five minutes to save $10 or our inability to properly assess what the things we buy are actually worth. Together Ariely and Kreisler reveal the emotional forces working against us and how we can counteract them. Mixing case studies and anecdotes with concrete advice and lessons, they cut through the unconscious fears and desires driving our worst financial instincts and teach us how to improve our money habits.The result not only reveals the rationale behind our most head-scratching financial choices but also offers clear guidance for navigating the treacherous financial landscape of the brain. Fascinating, engaging, funny, and essential, Dollars and Sense provides the practical tools we need to understand and improve our financial choices, save and spend smarter, and ultimately live better.


Compare

Why is paying for things painful? Why are we comfortable overpaying for something in the present just because we’ve overpaid for it in the past? Why is it easy to pay $4 for a soda on vacation, when we wouldn’t spend more than $1 on that same soda at our local grocery store? We think of money as numbers, values, and amounts, but when Why is paying for things painful? Why are we comfortable overpaying for something in the present just because we’ve overpaid for it in the past? Why is it easy to pay $4 for a soda on vacation, when we wouldn’t spend more than $1 on that same soda at our local grocery store? We think of money as numbers, values, and amounts, but when it comes down to it, when we actually use our money, we engage our hearts more than our heads. Emotions play a powerful role in shaping our financial behavior, often making us our own worst enemies as we try to save, access value, and spend responsibly. In Dollars and Sense, bestselling author and behavioral economist Dan Ariely teams up with financial comedian and writer Jeff Kreisler to challenge many of our most basic assumptions about the precarious relationship between our brains and our money. In doing so, they undermine many of personal finance’s most sacred beliefs and explain how we can override some of our own instincts to make better financial choices.Exploring a wide range of everyday topics—from the lure of pain-free spending with credit cards to the  pitfalls of household budgeting to the seductive power of holiday sales—Ariely and Kreisler demonstrate how our misplaced confidence in our spending habits frequently leads us astray, costing us more than we realize, whether it’s the real value of the time we spend driving forty-five minutes to save $10 or our inability to properly assess what the things we buy are actually worth. Together Ariely and Kreisler reveal the emotional forces working against us and how we can counteract them. Mixing case studies and anecdotes with concrete advice and lessons, they cut through the unconscious fears and desires driving our worst financial instincts and teach us how to improve our money habits.The result not only reveals the rationale behind our most head-scratching financial choices but also offers clear guidance for navigating the treacherous financial landscape of the brain. Fascinating, engaging, funny, and essential, Dollars and Sense provides the practical tools we need to understand and improve our financial choices, save and spend smarter, and ultimately live better.

30 review for Dollars and Sense: How We Misthink Money and How to Spend Smarter

  1. 4 out of 5

    Erikka

    This seemed to take forever to finish and it was kind of repetitive. It was a lot of good advice and had some nice humorous elements, but I feel like certain things were said 3 or 4 times. I usually like Dan Ariely's works, and while I did learn some things from this one, it didn't grab me the way his previous books did. This seemed to take forever to finish and it was kind of repetitive. It was a lot of good advice and had some nice humorous elements, but I feel like certain things were said 3 or 4 times. I usually like Dan Ariely's works, and while I did learn some things from this one, it didn't grab me the way his previous books did.

  2. 5 out of 5

    AndyL

    Disappointing. Largely a regurgitation of ideas from other Ariely books. Repetitious even within the book, with a lot of filler. Would only recommend for those who have not already read Predictably Irrational and The Upside of Irrationality.

  3. 4 out of 5

    Christopher Lawson

    We Are All Inside The Money Volcano I was hesitant to read this book, as I was pretty sure it would be boring. I assumed it would be one of those “How to Make a Budget” type of books. Okay, I was completely wrong—it’s nothing of the kind. I enjoyed reading this book. DOLLARS AND SENSE by Dan Ariely and Jeff Kreisler explains how we think about money, with special emphasis on the frequent ways we think WRONGLY about money. It’s not that we are stupid about money; rather, we don’t think objectively We Are All Inside The Money Volcano I was hesitant to read this book, as I was pretty sure it would be boring. I assumed it would be one of those “How to Make a Budget” type of books. Okay, I was completely wrong—it’s nothing of the kind. I enjoyed reading this book. DOLLARS AND SENSE by Dan Ariely and Jeff Kreisler explains how we think about money, with special emphasis on the frequent ways we think WRONGLY about money. It’s not that we are stupid about money; rather, we don’t think objectively, and are easily manipulated in some areas. I confess I am a bit of a chump and easily tricked by marketers, so this book was especially helpful to me. For example, I really like those big, “50% OFF!” signs. I’m not alone, says the author. Bargains make us feel “special and smart. They make us believe we’re finding value where others haven’t.” I completely understand what the authors are saying. Deep down, I know I’m being manipulated by the “Savings” signs, but I still like the feeling of getting a great deal. The authors discuss the “pain” of buying something. Not surprisingly, if there is little pain, we tend to “spend more freely and enjoy consuming things more.” That’s a big factor in using credit cards—they separate the moment of consuming from the pain of paying. “Credit cards capitalize on our desire to avoid the pain of paying.” One of the favorite sections is the discussion of “Fairness.” We tend to value things more highly if we know a lot of effort has gone into the product or service. If it seems like the seller is gouging us, we won’t buy their product—even when it is in our best interest to do so. The later part of the book provides suggestions to help us. First off, realize that some forces in our environment WANT us to make poor decisions. A bad decision by us means more money for them: “We fight a financial environment that actively tries to tempt us to make bad financial decisions. We live in a world where outside forces constantly want something from us.” I thought this one suggestion was the best advice in the book: “From time to time, let’s stop and question our long-term habits.” Maybe getting that expense coffee every day is not really a good idea. Here’s an interesting idea that helps us save more money: We can also create a “Ulysses Contract.” (Named after the classic story of Ulysses tying himself up to prevent responding to the call of the Sirens.) A Ulysses contract is a process we setup to “create barriers against future temptation. We give ourselves no choice.” The idea is, have some sort of automatic savings process, to try to fend off future temptations. The authors cite a study showing that savings increased 81% under an automatic savings scheme. So all in all, I found DOLLARS AND SENSE to be a fun, insightful read. It’s definitely not one of those “Make a Budget and Stick to it” type of financial planning books. The authors write clearly and includes a ton of examples, often citing scientific studies. I liked the funny illustrations by Matt Trower. Advance Review Copy courtesy of the publisher.

  4. 4 out of 5

    Aman

    One of the best books on Human behavior with respect to money. Dan knows the art of explaining things with examples and personalities that you can relate to be it this book, the books before or the online MOOC. You'll find yourself constantly saying: "Had I been in this situation, I would have done the same thing as this guy did". One of the good ways this book differ from others in the same genre is how it won't tell you to get rid of the irrationality of human brain but rather how to embrace it One of the best books on Human behavior with respect to money. Dan knows the art of explaining things with examples and personalities that you can relate to be it this book, the books before or the online MOOC. You'll find yourself constantly saying: "Had I been in this situation, I would have done the same thing as this guy did". One of the good ways this book differ from others in the same genre is how it won't tell you to get rid of the irrationality of human brain but rather how to embrace it. The theme of this book is not to make you spend less money, or live a frugal life but to make sure you make an informed decision and value(compare) the elements of a purchase that are important and not just elements that are comparable. Gives real life example of how every marketer is trying to confuse us by leveraging the flaws of our brain(like pain of paying OR relative pricing OR anchoring effect) and helps us play the game the other way round. The best takeaway for me from the book was: It is okay to chose to spend different amount of money on two exactly same things if one of them gives us more pleasure than other, and believe me, you'll get examples in the book where two exactly same things like vacation or wine can give amazingly different pleasure when presented/enjoyed in different ways.

  5. 5 out of 5

    Erica Clou

    This is a better book if you haven't already read a ton of behavioral economics. For me, it was a compilation of a lot of effects I'd already read about (for example in Ariely's Predictably Irrational). This book would be great for people who don't know that much about behavioral economics who are interested in personal finance. I was also uncomfortable with the way the authors veered into territory that was somewhat morality- based without a holistic view of the issue. I fear economics often mak This is a better book if you haven't already read a ton of behavioral economics. For me, it was a compilation of a lot of effects I'd already read about (for example in Ariely's Predictably Irrational). This book would be great for people who don't know that much about behavioral economics who are interested in personal finance. I was also uncomfortable with the way the authors veered into territory that was somewhat morality- based without a holistic view of the issue. I fear economics often makes this mistake, but to my mind, behavioral economics is more sophisticated and shouldn't make this error. We've rejected the idea that humans make the most rational economic decisions. We've also learned that morality can be very closely tied to empathy and other emotional systems. So I didn't find the section on "fairness" to very sophisticated with regards to current economics, psychology, biology, or ethics research. Sure, you should pay the locksmith his rate for the reasons stated in this book, but I disagree that you shouldn't battle large companies like Netflix or Uber when they do something you consider unfair- and certainly when they do unethical things.

  6. 4 out of 5

    David Msomba

    In a nutshell,the author tries to show how our cognitive biases tend to affect our daily financial judgements and decisions. Again, If you are familiar with Dan Ariely`s previous work then you will revisit many of those ideas again in this book,but the book is still insightful,witful,contains alot of useful tips and I like the comic approach by his co-author,which made the book more interesting and hard to put it down. I highly recommend this,if you on quest of trying to understand how psychology In a nutshell,the author tries to show how our cognitive biases tend to affect our daily financial judgements and decisions. Again, If you are familiar with Dan Ariely`s previous work then you will revisit many of those ideas again in this book,but the book is still insightful,witful,contains alot of useful tips and I like the comic approach by his co-author,which made the book more interesting and hard to put it down. I highly recommend this,if you on quest of trying to understand how psychology of money works,I would also recommend another book, MIND over MONEY by Claudia Hammond,it also cover the same subject but on its own unique fantastic way.

  7. 4 out of 5

    Scott Wozniak

    Another great book on the surprising way we really think. Our decisions about money, it turns out, are very sensitive to the last number we thought about right before that decision, our self-concept, and which category we put the money in. We will go to great lengths to avoid loss but blow off the chance to gain the same amount of money, for example. It’s not only an important book. It’s a funny book. Very well written.

  8. 4 out of 5

    Veselin Nikolov

    I like Dan Ariely and read the book because of his name. This book, however, was a hard read and I didn't enjoy it. It says that thinking about money is hard but why would reading books about money be hard too? I think that it could only be useful for people who don't often read self-help. I like Dan Ariely and read the book because of his name. This book, however, was a hard read and I didn't enjoy it. It says that thinking about money is hard but why would reading books about money be hard too? I think that it could only be useful for people who don't often read self-help.

  9. 5 out of 5

    Jeimy

    A necessary text to understand the basics of financial literacy.

  10. 5 out of 5

    Ben Rogers

    It was good, but not anything as good as any other Ariely books. 2.7/5

  11. 4 out of 5

    Tarmo Pungas

    Not an amazing book, but makes you think about your past (and future) expenses and how irrationally we think about money.

  12. 4 out of 5

    Dave

    This book is informative in that it lets us know things about ourselves (whether we want to admit them or not) that we never knew. The fact that we are prejudiced and swayed in ways we don't even recognize can be disconcerting. But as is pointed out, knowing about these unconscious biases can help us address them, and even use them to our advantage. It doesn't just show us the flaws that exist in our programming, it gives strategies to deal with them. But we first have to admit to ourselves tha This book is informative in that it lets us know things about ourselves (whether we want to admit them or not) that we never knew. The fact that we are prejudiced and swayed in ways we don't even recognize can be disconcerting. But as is pointed out, knowing about these unconscious biases can help us address them, and even use them to our advantage. It doesn't just show us the flaws that exist in our programming, it gives strategies to deal with them. But we first have to admit to ourselves that the flaws are there, whether we like them or not. Anyone reading this may want to either take extensive notes, or plan on re-reading it to get the most out of it. I listened to the audio version of this book. The narration is clear and well-paced. Even the mildly sarcastic interjections are well-read, with just a hint of audible devilishness by the narrator.

  13. 5 out of 5

    Chuy Ruiz

    I have really enjoyed his other books, and this one was interesting as well. Definitely a good read for anyone struggling with money habits.

  14. 5 out of 5

    Athan Tolis

    Some three years ago, I belatedly came around to reading Ariely’s original masterpiece, “Predictably Irrational.” Here’s verbatim the summary of my findings: 1. Among two offerings, a merchant can reliably make us pick the one he prefers by sliding a “decoy” bad choice that is more similar to the choice he wants to steer us to 2. The first price we see for anything is the one we remember forever. Get that high “anchor” in and you can sell anything at a high price (and vice versa) 3. We are suckers Some three years ago, I belatedly came around to reading Ariely’s original masterpiece, “Predictably Irrational.” Here’s verbatim the summary of my findings: 1. Among two offerings, a merchant can reliably make us pick the one he prefers by sliding a “decoy” bad choice that is more similar to the choice he wants to steer us to 2. The first price we see for anything is the one we remember forever. Get that high “anchor” in and you can sell anything at a high price (and vice versa) 3. We are suckers for ambience/context. We won’t just pay up for a product if a setting looks upmarket or is sold in an upmarket setting, we’ll enjoy it more too. If something’s presented as expensive, basically, we are drawn to it almost automatically, with a very notable exception: 4. We’re drawn to stuff even more if it’s FREE! FREE! (with an exclamation mark, like Yahoo!) is a law unto itself 5. We can’t deal well with mixing social norms and market norms. We’ll do things for free that you could not possibly pay us to do. Conversely, if a price is put on something that has previously been rationed but free, the magic is gone and we can’t go back to looking at it through the prism of social norms 6. We can do some very stupid things when the “animal” inside us comes to the surface 7. We simply don’t have it in us to delay gratification. We’re not wired like that. We have to find ways to trick ourselves to save for a rainy day, to get medical checks etc. 8. We value stuff we own higher by dint of owning it. Our house, our stereo, theatre tickets, the lot. It all goes up in our estimation because it’s ours 9. We place immense value on keeping options open and waste disproportionate resources on keeping our options open relative to the potential benefit of exercising them 10. When we think something will be good, we end up liking it and when we think medicine will work it will end up working better! 11. In the same vein, a 50-Cent Aspirin can do things a 1-Cent Aspirin cannot 12. When nobody’s looking, we all cheat, but we don’t cheat too much, lest we end up feeling bad about ourselves 13. The more removed we are from actual cash, the less inhibited we are in our cheating Small Change covers exactly ZERO new ground, but omits point #5, point #6 and points #12 Funnily enough, that makes it a better book. I guess the author has come to realise that nine of his thirteen points were about… money. So he got a very funny (but impossibly lazy, he could not even be bothered to dig beyond his personal experience for new stories/examples) co-author to repackage those ideas and hey, presto, a better-focused book is on the shelves. Also, a major beef of mine with psychologists is they have to get sex into everywhere, a fact that makes it impossible to recommend their books to my mom or even to read their work on the tube. With point #6 expunged, this is indeed a book you can recommend to your mom and a book you can read in the tube with little risk of embarrassment. Modulo the jarringly frequent invocation of a dominatrix throughout the text, that is. So to all those of you who’ve never read Dan Ariely before, you can now skip his original opus. Buy “Small Change” instead, supplement it with “The Honest Truth about Dishonesty” and be on the lookout for his upcoming work on social norms vs. market norms. On the other hand, if you’ve already read “Predictably Irrational,” I can’t recommend buying this book. Like myself, you’ll feel robbed of your valuable reading time. And of whatever not-so-small change you paid for it, of course.

  15. 4 out of 5

    Dan Connors

    As a CPA, I try and read at least a few financial books per year. Many of the financial books today are unappealing to me, though I do have a weakness for Suzy Orman. This book, which came out in 2017, gives an alternative look at the way we think about money- mainly the irrational mistakes that our brains make when thinking about such an important and sensitive subject. Dan Ariely is a psychologist and writer, and I loved his book, Predictably Irrational. This one covers much of the same ground, As a CPA, I try and read at least a few financial books per year. Many of the financial books today are unappealing to me, though I do have a weakness for Suzy Orman. This book, which came out in 2017, gives an alternative look at the way we think about money- mainly the irrational mistakes that our brains make when thinking about such an important and sensitive subject. Dan Ariely is a psychologist and writer, and I loved his book, Predictably Irrational. This one covers much of the same ground, but is completely oriented towards money and the mistakes we make thinking about it. The audiobook version is narrated by a gentleman with a thick British accent, which I found distracting at first, but he adds some humor and emphasis to some of the more absurd findings, like that over 40% of financial planners don't have a financial plan of their own. Some key findings: Paying for things is inherently painful, triggering responses in the brain. People who want your money are getting smarter and smarter about hiding and postponing that pain, including such things as credit cards, automatic payments, Apple Pay and more. To control your spending, the authors recommend feeling the pain more readily, paying in cash or check directly. Anchoring is the depressing phenomenon that when we don't have much knowledge about what a price should be, high numbers, even random numbers, can "anchor" our brain so that other numbers seem fair in comparison. Anchor numbers, such as suggested retail prices, are garbage, as are most sales prices. You should buy something because it fits your budget and answers your needs, period. Whether it's a good bargain is immaterial. The IKEA effect and the endowment effect are blinding biases that make us think that everything we touch or own is better because it's ours. Even taking a test drive or putting on a dress triggers this effect to such a point that we can't think objectively. We expect to see lots of effort from people who provide us services, even if that effort is wasted and incompetent. As a tax pro this one hit home because folks see how quickly I can find tax answers and think I'm overpaid, while it took me years and years of practice to get there. We expect prices to be fair based on the outer appearances we observe. We don't save for the future often because of a present bias. This isn't news, but the extent to which we discount the future still amazes me. It's a struggle we can all identify with. The solution to all this temptation and irrationality is to control your environment, getting rid of opportunities to make bad decisions as much as possible. They mention the Ulysses contract, taken from the ancient story where Ulysses bound himself to his own ship so he couldn't be tempted by the sirens who wanted to kill him. In such a contract, you lock up your money or your ability to get at it, and bad decisions aren't even on the table because you don't have the ability to give in to temptations. Great book- food for thought- four of five stars.

  16. 4 out of 5

    Michel Meijer

    How are our brains fooled by money and how is our behavior manipulated by money. I thought that would be an interesting subject to dive in and this book by Dan Ariely and Jeff Kreislerr got some praise on the internet so I gave it a shot. I made 2 mistakes. 1) I bought the Dutch translation. And the translation is not good. The humor conveys poorly and the translator did no effort to link the Amercanisms in the book to Dutchisms. In general, the Dutch do not work a lot with dollars and creditcard How are our brains fooled by money and how is our behavior manipulated by money. I thought that would be an interesting subject to dive in and this book by Dan Ariely and Jeff Kreislerr got some praise on the internet so I gave it a shot. I made 2 mistakes. 1) I bought the Dutch translation. And the translation is not good. The humor conveys poorly and the translator did no effort to link the Amercanisms in the book to Dutchisms. In general, the Dutch do not work a lot with dollars and creditcards in their daily life, and their lifes differ at many details. So seeing these American habits written in a presumely Dutch environment alienated me from the content. 2) Apparently, the book was co-written with a stand-up comedian. Most chapters start with a short story describing how weird we can react when money is involved, and then the authors address the reader in the "we" form with attempts to humor. Did this work? Hell no, it annoyed the hell out of me. The content (phycological effect money has on behavior) became significantly diluted with hypothetical stories and stupid annoying "jokes". Finally, the book describes for 90% the behavior. Not the stuff I was after (and advertised on the cover): how to use the phycology of money to your own benefit. Just skip to Chapter 14, where the previous chapters are summarized. Then the chapters after give tips. And it all boils down to: "think before you spend". 2 stars, max.

  17. 4 out of 5

    Lydia

    Very interesting read. There was a kiddie coaster of emotions. The ups and downs of 'I'm an idiot,' 'I'm not an idiot,' 'Humans are idiots,' 'the majority of us are going to die poor and forever working,' and 'no wait, we can trick ourselves into not being so idiotic!' I noticed at the grocery store after reading the book that I was thinking about my purchases more. I reasoned through the sales and gimmicks and actually saved $10 on what I normally spend. Did I also second guess those second gue Very interesting read. There was a kiddie coaster of emotions. The ups and downs of 'I'm an idiot,' 'I'm not an idiot,' 'Humans are idiots,' 'the majority of us are going to die poor and forever working,' and 'no wait, we can trick ourselves into not being so idiotic!' I noticed at the grocery store after reading the book that I was thinking about my purchases more. I reasoned through the sales and gimmicks and actually saved $10 on what I normally spend. Did I also second guess those second guesses? Yes. Did I spend way more time in the store than I normally do? Yes. Did I buy unnecessary items or more items of a thing than I need? No. So I'm going to call it a win. This isn't a how to save money book or how to be better at investing. This book shows you how to reevaluate your spending habits, how you think about money and your spending habits, and how to be more cognizant of your money and how you spend and save it. I'd recommend this to anyone who is interested in human behavior and psychology, and personal finance.

  18. 5 out of 5

    Tariq Mahmood

    The book is ideal for someone like me who is a pathological and emotional spender of my own money. The book explains life-changing economic decisions with simple and relevant examples with plenty of funny anecdotes which made it into my best economy books to date. I think it will have an impact on my spending habits as I will try and make more informed decisions and try and keep my emotions in check :(

  19. 5 out of 5

    Supriya Raghavendra

    A light hearted read with relatable anecdotes and plenty of humour. The book talks about how to spend and not spend money, common flaws while thinking about money, the ways in which we creatively rationalize our stupid financial decisions and finally, some advice on how to use dollars and our sense more wisely. A must read for young folks who are beginning to deal with disposable income. Esp. the ones that are susceptible to impulsive and emotional spending like me!

  20. 5 out of 5

    Janice

    I'm not sure who the target reader for this book is, but clearly it is not me. When it comes to financial advise I want it straight forward and no nonsense. This was nothing but rambling, unorganized, nonsense. Thanks, but no thanks. I'm not sure who the target reader for this book is, but clearly it is not me. When it comes to financial advise I want it straight forward and no nonsense. This was nothing but rambling, unorganized, nonsense. Thanks, but no thanks.

  21. 4 out of 5

    Morgan Rohbock

    I think every couple should read this book together either during engagement or the first few years of their marriage along with Millennials looking to get their finances together or fans of The Financial Diet. Dan and Jeff share research on money, psychology and all the crazy ways we rationalize our spending. We listened to this book on a road trip and the British accent and casual comments made this book amusing to listen to while the content really got us talking about our different perspecti I think every couple should read this book together either during engagement or the first few years of their marriage along with Millennials looking to get their finances together or fans of The Financial Diet. Dan and Jeff share research on money, psychology and all the crazy ways we rationalize our spending. We listened to this book on a road trip and the British accent and casual comments made this book amusing to listen to while the content really got us talking about our different perspectives on money. Have you ever gone on an all inclusive vacation where you just did whatever you want and ate whenever you wanted but then on another vacation, you chose to skip lunch and eat snacks to avoid paying for food? You were avoiding the pain of paying and you could have spent more on that all inclusive vacation but felt better about it because you weren't paying as often. Have you gone to Kohl's or JC Penney and spent $50 but you were proud because you really saved $75? Well, those stores have a history of marking up clothes and then putting them on sale to make them enticing and when JC Penney's tried to change the price structure to be the true price, people boycotted the store. Dan Ariely presents these mind tricks and more than allow us to rationalize our money habits even when these habits aren't always rational. Dan and Jeff then flip this research on its head and recommend to leverage psychology to make better money decisions like save more for retirement by thinking about retirement in a more immediate time frame rather than 20 years in the future, thinking about how much a service or item is truly worth rather than the sale price, create incentives to treat yourself now for doing something that has a long term benefits, etc. We thoroughly enjoyed this book and the audiobook was a smooth entertaining listen for something that could have been very dry. If you're looking to improve on current spending habits, Bohdan and I both recommend checking this book out.

  22. 5 out of 5

    Roy

    Although many of the book's key notions are recycled from Dan Ariely's previous works (e.g. Predictably Irrational), the authors' witty, sometimes self-deprecating writing makes it hard to put down the book, all the while chuckling at our own money mistakes. The fact that it's real money at stake makes it all the more incredible (and amusing?) to see the self-deceptions, mental loops, and shenanigans we humans routinely commit to just to avoid pain and uncertainty or protect our ego. Most importa Although many of the book's key notions are recycled from Dan Ariely's previous works (e.g. Predictably Irrational), the authors' witty, sometimes self-deprecating writing makes it hard to put down the book, all the while chuckling at our own money mistakes. The fact that it's real money at stake makes it all the more incredible (and amusing?) to see the self-deceptions, mental loops, and shenanigans we humans routinely commit to just to avoid pain and uncertainty or protect our ego. Most important of all, companies are well aware of consumers' cognitive fallacies and more than happy to make us pay more than a perfectly rational being would. Therefore, do yourself a favor and at least be a more informed consumer by reading this book! P.S. Those who don't have enough time to read from the beginning can go straight to chapter 14 for a quick summary.

  23. 5 out of 5

    Matias Kewe

    Key takeaways: Money can be thought about in absolute or relative terms. We 'short change' ourselves when we compartmentalise our expenses, effectively thinking about money in relative as opposed to absolute value. Money is fungible, that is any $10 note is as valuable as any other $10. We are likely to value our possessions more than others do, or more than the market thinks that item or service is worth. We are susceptible to price anchoring, irrespective of the reference. All the more when other Key takeaways: Money can be thought about in absolute or relative terms. We 'short change' ourselves when we compartmentalise our expenses, effectively thinking about money in relative as opposed to absolute value. Money is fungible, that is any $10 note is as valuable as any other $10. We are likely to value our possessions more than others do, or more than the market thinks that item or service is worth. We are susceptible to price anchoring, irrespective of the reference. All the more when other markers of quality are absent. Ritual and anticipation increase the value of an item or experience. Think pre-booking a holiday, laybying an item or swirling a glass of wine around an expensive wine glass prior to consuming it. Similarly, paying for an item or experience after we've consumed it can leave a negative lasting impression.

  24. 4 out of 5

    Will Simpson

    I thought I was a conscientious spend and saver but Dan and Jeff showed me where I’ve fooled myself and sometimes been lead astray in my financial decision making. Through many examples they show where we can slip and not act in our own best interest. They do not want to foster guilt on particular financial decisions but instead hope to show where creating a helpful space to consider options, opportunity cost, future self, long term goals - is in our own best interests. I love and follow Dan’s w I thought I was a conscientious spend and saver but Dan and Jeff showed me where I’ve fooled myself and sometimes been lead astray in my financial decision making. Through many examples they show where we can slip and not act in our own best interest. They do not want to foster guilt on particular financial decisions but instead hope to show where creating a helpful space to consider options, opportunity cost, future self, long term goals - is in our own best interests. I love and follow Dan’s work in behavioral economics and Jeff is sort of a comedian and the combo is golden. This book makes a otherwise heavy subject light and in parts very funny. The humor makes the advice easy to swallow. I learn a lot and now I want to apply these lessons hopefully without being snobbish or prudish.

  25. 4 out of 5

    Matt

    This was an audiobook that started off great but ended with a whimper. It caught my interest while driving cross country, but the last 1/3 became pretty lame. There was good writing throughout but the content and worthwhile material ran out somewhere after the halfway mark. Still, it provided some interesting information about the trends of spending money and how corporations and marketers use sly techniques to pry money out of our hands and savings accounts. I will be remembering some of the ma This was an audiobook that started off great but ended with a whimper. It caught my interest while driving cross country, but the last 1/3 became pretty lame. There was good writing throughout but the content and worthwhile material ran out somewhere after the halfway mark. Still, it provided some interesting information about the trends of spending money and how corporations and marketers use sly techniques to pry money out of our hands and savings accounts. I will be remembering some of the material presented in this book while trying to hold off the marketers trying to separate me from my paycheck.

  26. 5 out of 5

    Matt Fitz

    I really enjoy the research Ariely had done in the past (and present), but this book seemed to be repetitive and cumbersome. Still worth a read because it does the same as his book on honesty/dishonesty...it points to how our human condition of intuitions, heuristics, subjective beliefs, rationalizations, and emotions subject us to being erroneous when it comes to money and value. I found myself realizing how much I get wrong even when I think I'm being objective and smart. For people who enjoy I really enjoy the research Ariely had done in the past (and present), but this book seemed to be repetitive and cumbersome. Still worth a read because it does the same as his book on honesty/dishonesty...it points to how our human condition of intuitions, heuristics, subjective beliefs, rationalizations, and emotions subject us to being erroneous when it comes to money and value. I found myself realizing how much I get wrong even when I think I'm being objective and smart. For people who enjoy popular application of psychology/sociology, you'll enjoy this book and find humor with his intentionally funny but realistic anecdotes and examples. Ironically, I spent smarter on this book since it was a library loaner. ;-)

  27. 4 out of 5

    Mehdi Hassan

    Dan partners with his fellow quirky thinker Jeff Kreisler to produce this volume that dives deep into the bahavorial psychology of finance. There are plenty of examples of cultural spending and a lively commentary is made on the nuances of experience that money can buy. Plenty of comparisons made, intuitive analysis carried out and curious questions raised. The book recommends nothing yet offers a very interesting way of thinking. This book is for those who enjoy a session of self-debate between Dan partners with his fellow quirky thinker Jeff Kreisler to produce this volume that dives deep into the bahavorial psychology of finance. There are plenty of examples of cultural spending and a lively commentary is made on the nuances of experience that money can buy. Plenty of comparisons made, intuitive analysis carried out and curious questions raised. The book recommends nothing yet offers a very interesting way of thinking. This book is for those who enjoy a session of self-debate between the emotional and rational part of their psyche.

  28. 4 out of 5

    Bipin Ramachandran

    A great book on understanding money psychology. We were never thought about real-life money matters in school. In home also, money remains a taboo subject. I believe this belongs in a group of books that provides real education on personal finance, helps us to make better decisions by making small changes in the way we think. The concepts are explained interestingly and humorously. If you worry about your financial future but also think reading about money is boring, I would recommend giving thi A great book on understanding money psychology. We were never thought about real-life money matters in school. In home also, money remains a taboo subject. I believe this belongs in a group of books that provides real education on personal finance, helps us to make better decisions by making small changes in the way we think. The concepts are explained interestingly and humorously. If you worry about your financial future but also think reading about money is boring, I would recommend giving this a try.

  29. 5 out of 5

    Rustin Roundy

    I really took a lot away from this book. while there were many specific pointers and exclamations for our behavior as a society with regard to money, there were one-of-a-kind tips I had never heard before. Like credit card roulette, where all members of a dining party all give the waitress their cards and the waitress selects only one to run and that’s who pays. another thing I found fascinating was the pain of paying and how separating the time of purchase from the time of consumption and helps I really took a lot away from this book. while there were many specific pointers and exclamations for our behavior as a society with regard to money, there were one-of-a-kind tips I had never heard before. Like credit card roulette, where all members of a dining party all give the waitress their cards and the waitress selects only one to run and that’s who pays. another thing I found fascinating was the pain of paying and how separating the time of purchase from the time of consumption and helps to ease that pain. and the author goes into detail about these new cash apps such Venmo which take all the pain out of paying.

  30. 4 out of 5

    Mike

    As with all of Ariely's books - this one clearly reminds us of how flat out dumb we are. Unlike most of his other ones, it does come with some pretty clear ways we can take advantage of our foibles to our own advantage....but, ultimately we are still dumb. Ignore if something is on sale, realizing that anchoring is screwing with your mind, don't jude things on price alone...and compare items based on opportunity cost. The best trick I got out of this - make a deal with your future self, mine is M As with all of Ariely's books - this one clearly reminds us of how flat out dumb we are. Unlike most of his other ones, it does come with some pretty clear ways we can take advantage of our foibles to our own advantage....but, ultimately we are still dumb. Ignore if something is on sale, realizing that anchoring is screwing with your mind, don't jude things on price alone...and compare items based on opportunity cost. The best trick I got out of this - make a deal with your future self, mine is Mike hitting his 70th birthday, which isn't too long in the future...and use him to evaluate your current spending decisions.

Add a review

Your email address will not be published. Required fields are marked *

Loading...
We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy.