Dollars and Sense: How We Misthink Money and How to Spend Smarter By Dan Ariely & Jeff Kreisler

Written by Leigh Martinuzzi 

Dan Ariely is the Professor of Psychology and Behavioural Economics at the Duke University. He publishes his research in various publications and has written several best sellers including Payoff, Predictably Irrational and The Honest Truth About Dishonesty. In his latest book, Dollars and Sense, Dan explores reasons why our spending habits may be costing us more than we realise.

What I love about Dan Ariely’s research are the cool thoughts, methods and studies he delivers in efforts to understand our human condition. In this book, he also teams up with Jeff Kreisler, a financial comedian, and together that question our relationship with money in a brilliantly simple to understand and entertaining format.

As Dan states that when it comes to our money spending habits, it has little to do with numbers, values and amounts and more a case of emotions and their psychological impact on our ability to make sound decisions.

In understanding these insights they share, it may just open our eyes to how our spending behaviours are influenced. Awareness is the key to improving any actions, good or bad, so in knowing why we spend as we do, may we strengthen our personal relationship with money.

Much of the research they illustrate makes perfect sense. It’s almost blatantly obvious. And yet many of us continue to fall victim to our poor financial choices. These unconscious patterns, tricks of the emotions, and marketing methods used to have us spend more or spend unwisely will be brought forward after reading this book. Hopefully then may we make better choices.

Ariely and Kreisler raise and answer many questions such as why it is painful to spend money on some things and yet on other items we don’t even bat an eyelid. Why we find it easy to pay with credit and however with cash we are more reluctant. How companies influence our purchasing habits by targeting emotions and smart pricing tactics.

The book is broken into three distinct categories. They first reclarify what money is. It’s surprising how much that just by understanding this it helps. Then they explore how we assess value in which it actually has little to do with ‘real’ value. And in the final section, they deliver methods that can help us avoid the traps and pitfalls of poor spending habits.

An intelligent book and one that keeps you hooked. Again, nothing that is too complicated to get grips with but indeed it will alter your perspective. I have read a couple of Dan’s books now and thoroughly enjoy his writing. He’s also been a guest on the podcast. You won’t be disappointed.

If this book sounds of interest you can purchase Dollars and Sense: How We Misthink Money and How to Spend Smarter here.

Please leave your thoughts, comments & questions below.

Peace, passion and purpose…

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