438 | Dollars and Sense | Clint Murphy & Ginger

By ChooseFI

ChooseFI

22/05/23·58m 49s

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:

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!