Don't Trust Yourself With Money | Jeff Kreisler
November 23rd, 2020
1 hr 5 mins 12 secs
About this Episode
Jeff Kreisler uses behavioral science, real life, and humor to understand, explain, and change the world. He’s pretty much your friendly, typical Princeton educated lawyer turned award-winning comedian, best-selling author, and champion for behavioral economics .
WHAT YOU'LL LEARN
What money is, why we won't make good money decisions, the common cognitive biases we have related to money, how to not let the retailers dupe you during this holiday shopping season, and more!
[11:31] "Traditional economics says everything's cost benefit analysis. Reality is that that's not how it works. We are busy people. We have a lot of stress and we don't always make the rational choice."
[16:47] "The there's no clear right or wrong choice with money that we all always know. There's always some uncertainty. And when uncertainty is in any decision, that gap gets filled by the emotional needs that we have. The need to feel like we're making the right choice. The need to feel like we've done the right thing. The need to feel good. And that's when we can be prone to make irrational decisions, because we go by our feelings and emotions. "
[18:08] "I feel like marrying the data science with the people science is going to be like an incredible combination. To not just know where they're going and what buttons to push, but why why are people doing this?"
[20:30] "When we pay for something, it stimulates the same region of our brain as physical pain. And that pain should serve a purpose. It should make us stop and think about what we're doing."
[34:01] "You can't pay your rent with the money you save shopping."
FIND JEFF ONLINE
[00:01:32] Introduction for our guest
[00:02:42] We talk about Jeff’s journey
[00:08:06] How Jeff teamed up with Dan Ariely
[00:13:54] The concept of money
[00:18:46] Mental shortcuts and money
[00:22:24] What would you do with $30,000
[00:25:24] Relativity, money, and why we suck at comparing things
[00:29:38] System 1 and System 2
[00:31:33] Don’t fall for the sale price!
[00:33:22] How retailers will trick you with discounts
[00:35:52] The anchoring effect
[00:41:16] Mental accounting
[00:45:06] Extreme examples of mental accounting
[00:46:38] Do we have the same cognitive biases for other people's money as we do for our own?
[00:48:39] Herding and self-herding
[00:52:28] Jeff shares his top three favorite tips for fighting our flawed financial thinking
[00:56:37] Some other cognitive biases to watch out for this holiday shopping season
[00:58:27] It's one hundred years in the future. What do you want to be remembered for?
[00:59:23] The random round