How to avoid financial decision-making mistakes and spend money more wisely
From the author of the worldwide bestseller How Expensive is Free?
- What influences us when making major purchasing decisions? - Why do we suffer so terribly when we pay anything? - Why is it so easy to pay several times more for an identical product on holiday than we would be willing to pay for it at home?
We think of money as numbers, we think about its value and quantity, but when we spend money in real life, there is more emotion than rational thought at play. In other words, emotions play a big role in shaping the way we handle money. For example, when we try to save money, put a price on things, or spend responsibly, we end up making bad decisions.
The book covers a wide range of topics from everyday life - from the pitfalls of "painless" credit card payments, to the hidden dangers of managing a household budget, to the seductive pitfall of reckless holiday spending.
Behavioral economist Dan Ariely teamed up with author Jeff Kreisler for Money and Common Sense to challenge our basic ideas about the tricky relationship between the human brain and money. In his book, he humorously breaks down many commonly held beliefs about money management and shows us how to overcome the instincts that pull us in the wrong direction when making financial decisions.