EP 76: Dollars and Sense, The Hidden Biases that control our spending with Jeff Kreisler

In a world where people are talking about crypto and digital currencies, we look at the real psychology of money and why and how we spend it. Jeff Kreisler and Dan Ariely brilliantly give us some great pointers on how we can avoid the many pitfalls and psychological traps behind our spending habits and behaviours. Money is the top reason for divorce, the number one cause of stress for people and we are demonstrably worse at all kinds of problem-solving when we have money problems on our minds. Money has changed the human condition as much as any other advance—as much as the printing press, the wheel, electricity, and al the tech advances we are now seeing We look at several of the biases and forces at play behind our financial choices and lack thereof, we discuss the following: Opportunity cost neglect and Alternatives We absolutely must, consciously or not, consider opportunity costs every time we use money. We should consider the alternatives we are giving up by choosing to spend money now. The endowment effect The Ikea effect Loss Aversion Emotional Accounting  Anchoring Gateway Drugs Virtual Ownership Retirement savings Fairness and effort Anchoring Payments Frictionless. Painless. Thoughtless The pain of paying Language and how it affects what we pay.

More about Jeff and where to find his books and his speaking opportunities here: http://www.jeffkreisler.com/