What makes spending money feel painful? Why do we find it acceptable to pay more for something today simply because we've previously overpaid for it? Why is it so easy to buy a soda for $4 while on vacation, even though we wouldn't spend more than $1 for the same drink at our local grocery store?
We perceive money primarily as figures, values, and totals, but when it comes down to actual transactions, our emotions play a larger role than our reasoning. These feelings significantly influence our financial behaviors, often making us our own biggest obstacles as we try to save, evaluate worth, and manage our spending wisely.
In Dollars and Sense, bestselling author and behavioral economist Dan Ariely collaborates with financial humorist and writer Jeff Kreisler to challenge many of our fundamental beliefs about the delicate connection between our minds and our money. They question numerous established tenets of personal finance and explain how we can overcome some of our natural tendencies to make wiser financial decisions.
Addressing a variety of everyday subjects - from the allure of stress-free spending through credit cards to the challenges of household budgeting, and the enticing appeal of holiday sales - the authors illustrate how our misplaced confidence in spending frequently misleads us, often costing us more than we realize, whether it be the actual value of driving forty-five minutes just to save $10 or our struggle to accurately appraise the true worth of our purchases.
Together, the authors shed light on the emotional influences against us and how we can effectively counter them. By blending case studies and personal stories with actionable advice and insights, they unpack the unconscious fears and desires that drive our least favorable financial instincts, teaching us how to enhance our money management skills.
Ultimately, Dollars and Sense not only clarifies the reasons behind our puzzling financial decisions, but also provides straightforward strategies for navigating the complex financial terrain shaped by our minds. This engaging, insightful, humorous, and essential book equips us with the tools necessary to grasp and enhance our financial decisions, allowing us to save and spend more intelligently, and ultimately lead better lives.
Table Of Contents
- Part I What Is Money?
- 1 Don’T Bet On It
- 2 Opportunity Knocks
- 3 A Value Proposition
- Part II How We Assess Value In Ways That Have Little To Do With Value
- 4 We Forget That Everything Is Relative
- 5 We Compartmentalize
- 6 We Avoid Pain
- 7 We Trust Ourselves
- 8 We Overvalue What We Have
- 9 We Worry About Fairness And Effort
- 10 We Believe In The Magic Of Language And Rituals
- 11 We Overvalue Expectations
- 12 We Lose Control
- 13 We Overemphasize Money
- Part III Now What? Building On The Shoulders Of Flawed Thinking
- 14 Put Your Money Where Your Mind Is
- 15 Free Advice
- 16 Control Yourself
- 17 It’S Us Against Them
- 18 Stop And Think
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| EPUB |  |
1.67 MB |