In this episode: the pain of paying, anchoring, relative value, sunk costs, response to stimulus, and opportunity cost.

On this installment of the Book Club, we are joined by Clint Murphy and Ginger to discuss some of our favorite takeaways from Dan Ariely and Jeff Kreisler's "Dollars and Sense: How We Misthink Money and How to Spend Smarter," We often mention on this podcast the importance of actionable steps you must be willing to take while on the journey to FI, and this book is chalk-full of actionable tips and examples that could possibly be applied to many areas of your life, not just personal finance. While we know that personal finance is not unilateral and there are no correct steps and decisions that ensure success for everyone, we believe this book can help you better understand the decision making processes that goes into taking actionable steps on your FI journey!

Book Club Selection:

"Dollars and Sense: How We Misthink Money and How to Spend Smarter" by Dan Ariely and Jeff Kreisler

Timestamps:

1:21 - Introduction
4:20 - Reducing The Pain Of Paying
11:42 - Anchoring
19:01 - Opportunity Cost and Saying No
25:40 - Relative Value
30:20 - Why We Don't Understand Fairness and Value
38:49 - Sunk Costs
46:31 - Overvaluing What Your Already Have
50:07 - Spreading The Gap Between Stimulus and Response
57:21 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

394: Birthing a Book AND a Baby (Comparisonitis is OUT NOW) | Melissa & Nick