Dollars and Sense. Book Summary

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Dan Ariely

What’s inside

Dollars and Sense explores common cognitive biases and behaviors that lead people to mismanage money. It combines practical advice with psychological research.

You’ll Learn

  • Understanding psychological factors affecting spending
  • Improving money management skills
  • Identifying and overcoming financial biases
  • Making smarter spending decisions

Key Points

  • Identifying Money Illusions
  • The Pain of Paying and How It Affects Spending
  • How Context Changes Value Perception
  • Mental Accounting and Its Impact on Financial Decisions
  • The Influence of Relativity on Purchasing Choices
  • Sunk Cost Fallacy in Everyday Spending
  • Ways to Outsmart Personal Finance Biases

Who’s it For

  • Personal finance enthusiasts
  • Psychology students
  • Economists
  • Anyone struggling with money management

About the author

Dan Ariely is a renowned professor of psychology and behavioral economics, known for his work on decision making and irrationality.