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 chock-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 go into taking actionable steps on your FI journey!
Book Club Selection:
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 You Already Have
- 50:07 – Spreading The Gap Between Stimulus and Response
- 57:21 – Conclusion
Resources Mentioned In Today’s Episode:
- The Growth Guide Podcast
- Clint’s Twitter: @IAmClintMurphy
- FI is Fun
- The Great Man Within
- “Die With Zero: Getting All You Can from Your Money and Your Life” by Bill Perkins
- “Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions” by Dan Ariely
- Subscribe to The FI Weekly!
